How do you keep your clients' private information secure when using online transactions?

1 Use secure platforms and tools

Not all online platforms and tools are created equal when it comes to security. Some may have weak encryption, outdated software, or vulnerable servers. You should choose platforms and tools that have strong security features, such as SSL certificates, two-factor authentication, password protection, and data encryption. You should also update your software regularly and use antivirus and firewall programs on your devices. Avoid using public Wi-Fi or shared computers when accessing sensitive information.

2 Educate your clients and yourself

One of the biggest threats to online security is human error. Your clients may not be aware of the best practices to protect their information online, such as creating strong passwords, avoiding phishing emails, and verifying the identity of the sender before opening attachments or links. You should educate your clients on how to recognize and avoid common scams and frauds, and how to report any suspicious activity. You should also keep yourself informed of the latest trends and regulations regarding online security and privacy in the real estate industry.

3 Limit the amount and duration of data collection and storage

You may need to collect and store some of your clients' information for online transactions, such as their names, addresses, phone numbers, email addresses, bank accounts, and credit card numbers. However, you should only collect and store the minimum amount of information necessary for the transaction, and only for as long as required by law or contract. You should also delete or destroy any unnecessary or outdated information from your devices and cloud storage. You should also ask your clients for their consent before collecting and storing their information, and inform them of how you will use and protect it.

4 Follow the industry standards and regulations

The real estate industry has some standards and regulations regarding online security and privacy, such as the National Association of Realtors (NAR) Code of Ethics, the Real Estate Settlement Procedures Act (RESPA), and the Gramm-Leach-Bliley Act (GLBA). These standards and regulations set the guidelines and expectations for how you should handle your clients' information online, such as how to disclose, safeguard, and dispose of it. You should familiarize yourself with these standards and regulations, and follow them diligently. You should also consult with your broker, attorney, or compliance officer if you have any questions or concerns.

5 Have a contingency plan and insurance

Despite your best efforts, you may still face some unexpected situations or incidents that compromise your clients' information online, such as a data breach, a cyberattack, or a lawsuit. You should have a contingency plan and insurance to deal with these scenarios, such as how to notify your clients, how to recover or restore the data, how to prevent further damage, and how to cover the costs and liabilities. You should also review your plan and insurance periodically and make any necessary adjustments.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?