Challenges for the Real Estate Industry in Audit, Compliance and Security in a Digital World

21.11.23 08:20 AM Comment(s) By Assetsoft 3

Cybercrime is a constant threat to construction and real estate businesses. The digitization of the industry makes the concern more prominent. 

Companies deal with considerable sensitive data when it comes to audit and compliance. It may include client and financial information that should always remain private. 

However, news of data breaches is not uncommon in the industry. Cybercriminals targeted Bird Construction in Toronto in 2019, that resulted in the theft of 60 gigabytes of data. 

The data includes social security numbers, banking details, and more. 

Bouygues Construction also suffered a similar fate in 2020. Cybercriminals stole 200 gigabytes of data and demanded $10 million in ransom. 

Data Privacy

Data security is one of the top challenges in audit, security, and compliance in today’s digital world. The construction and real estate industry handles data related to:

  • Price points

  • Private financial details

  • Loan information

  • Licensing and compliance

The list is ever-stretching and includes diverse data sources. It is a challenge to ensure data privacy for such a distributed network. 

Additionally, companies must comply with laws like the California Privacy Rights Act (CPRA) and Europe’s General Data Protection Regulation (GDPR).

The nuances of regulatory frameworks and laws are another challenge. 

Increased Attack Surface

The construction and real estate industry has embraced digitization with open arms. It relies on several elements like the Internet of Things (IoT) and sensors to collect data and monitor systems. 

Additionally, companies use tools like building information modeling (BIM) and cloud-based services to run operations. 

The large ecosystem of hardware and tools increases the attack surface. It poses a significant security challenge as every endpoint needs to be secured. 

Integrating diverse technologies is also challenging unless done with proper expertise and care. 

Moreover, the security standards can be complex and nuanced. 

Supply Chain Risks

Businesses in construction and real estate deal with countless vendors and suppliers. It is necessary to be aware of each party’s privacy practices and policies to avoid legal hassles. 

A vendor may store or access client data and company information. However, the duty to protect privacy lies with the company. 

They will be held liable in case of any data breaches. 

Additionally, managing suppliers may involve digital tools and platforms. A business must ensure every element, even at the vendor end, is secure. 

Considerable effort is required to minimize data misuse along the supply chain. 

Smart Building Risks

Smart buildings are highly automated. Therefore, the security of such buildings can pose a challenge to property owners and managers. 

Access control in smart buildings is a matter of concern. It can take significant effort to manage access controls and prevent unauthorized access. 

Additionally, data privacy challenges can be present in smart buildings. A law in New York places restrictions on how property owners or managers can use the data related to keyless entries. 

Moreover, securing interconnected systems like HVAC in a smart building may be a difficult task. 

Cybersecurity threats are also active against smart buildings. 

Lack of Preparedness

A lack of understanding and preparedness to tackle digital challenges exists in the real estate and construction industry. Many companies are using technology without investing in security practices. 

Employees also are not always aware of the best practices to adopt online or stay away from harm. They are the primary victims of threats like ransomware or malware that end up compromising company systems. 

Prepare for a Digital World

Understanding the nuances of a digital world is necessary to ensure foolproof security. Using reliable technology like compliance tech can also prove beneficial. It becomes easy to spot red flags and act before things become serious issues. Contact us today to learn how you can create a secure ecosystem of apps. We can help you choose and implement the right technology to mitigate your challenges. 

Assetsoft 3

Share -