Data privacy is an ever-increasing concern, particularly in finance, where sensitive information like personal and business bank statements, loans, credit information, driver’s licenses, and Social Security numbers are involved. Because of this, real estate is particularly vulnerable. The advent of artificial intelligence (AI), which allows more data to be transferred through apps and social media, further increases the need for robust laws and cybersecurity.
Large-Scale Data Breaches Have Sounded Alarm Bells
2024 has seen some of the largest data breaches in recent history, with 1 billion records stolen so far as of mid-October. The affected companies include AT&T, Change Healthcare, cloud data giant Snowflake, U.S. pharma business Cencora, health insurance company Kaiser, the United States Postal Service, Evolve Bank, and National Public Data, among others worldwide.
Data privacy law enforcement has increased nationwide, with states enacting their own rules. For real estate professionals, including brokers, landlords, and lenders, the stakes are high, and potential fines are heavy for mishandling sensitive information.
Europe first took the lead in data security in May 2018 with the introduction of the European…