Cyber Risks for Real Estate Directors and Agencies: How to Protect Yourself
O*NO! You may be across your sales pipeline, marketing strategy, and agency compliance like a pro, but what about your cybersecurity?
From addresses and IDs to bank account details, it’s no secret that real estate agencies handle a lot of personal data. But what many directors don’t realise is that failing to protect this data doesn’t just impact clients. It could personally expose you and your business to serious legal risk.
Cyber-attacks are increasing in frequency, cost and complexity, and agencies — big or small — are increasingly on the radar of cybercriminals.
Let’s break down some of the key cyber risks for directors and agencies and how to avoid being tomorrow’s cautionary tale.
What are the Cyber Risks for Directors and Real Estate Agencies?
Real estate agencies are a gold mine for cybercriminals. You’re a prime target because:
You collect sensitive personal and financial information
You often use cloud-based CRMs and digital contracts
You may rely on multiple third-party platforms or payment processors
You often send or receive large sums during settlements
Some common cyber risks for agencies include:
Phishing attacks: Emails or texts that trick staff into clicking malicious links or entering login details
Business email compromise (BEC): When attackers gain access to your agency email and trick clients into paying deposits or settlements to a fake bank account
Ransomware: Your systems or files are locked and only released after a ransom is paid
Data breaches: Where personal or financial client data is leaked, stolen or made public
Why Should Directors Care?
Aside from the obvious financial and reputational risks to your agency, directors themselves may be personally liable if they fail to take reasonable steps to manage cyber risks.
Under the Corporations Act 2001 (Cth), directors have a duty to exercise due care and diligence. That includes staying informed about risks, and that definitely includes cyber threats. If a director ignores these risks and a breach occurs, it could result in:
Regulatory investigations
If your agency experiences a data breach and it’s found that you failed to take reasonable steps to prevent it, expect a knock on the door from regulators. The Office of the Australian Information Commissioner (OAIC) can investigate your agency under the Privacy Act 1988 (Cth) and issue directions, require enforceable undertakings, or initiate court proceedings. In serious cases, you might also attract the attention of ASIC, especially if you’re a director who’s failed to exercise appropriate oversight of cyber risk.
Personal liability for damages
Directors have a duty under the Corporations Act 2001 (Cth) to act with care and diligence. If your lack of action contributes to a data breach — for example, failing to implement basic cyber protections or ignoring known risks — you could be found personally liable. This means affected parties might be able to pursue you for damages, not just your company. That could include compensation for clients who’ve suffered identity theft or financial loss because of your agency’s breach.
Claims of breach of director duties
If shareholders, business partners, or investors believe your inaction led to financial loss or reputational damage, you may face claims that you breached your director duties. These duties include acting in the best interests of the company and taking reasonable steps to inform yourself about risks. Courts have increasingly recognised cybersecurity as a critical governance issue, so there’s little room for “I didn’t know” as a defence.
Reputational damage that affects your ability to direct other companies
A serious breach can follow you. Not only can it affect your current agency’s reputation, but if you’re planning to sit on other boards or expand into new ventures, past cyber incidents — especially those linked to poor governance — can hurt your credibility. Other companies may hesitate to appoint a director who was involved in a data breach, particularly if it could have been prevented.
In short, cyber risks are no longer just an IT issue. They are a boardroom issue.
What Should You Be Doing Now?
Cybersecurity starts at the top. As a director or agency principal, you should be proactively managing cyber risks across your business. This includes:
Having a cyber risk strategy: Know your data, where it’s stored, and how it’s protected.
Regular staff training: Human error is the most common cause of breaches. Make sure your team knows how to spot suspicious emails and what not to click.
Multi-factor authentication (MFA): MFA makes it much harder for criminals to access your systems even if they steal a password.
Incident response plans: Be prepared if something goes wrong. The faster you act, the more you can limit the damage.
Legal compliance: Understand your obligations under the Privacy Act and ensure you’re meeting them.
Cyber insurance: This can help with the cost of recovery, legal fees and business interruption if a breach occurs.
What are Your Obligations Under Privacy Law?
Under the Privacy Act 1988 (Cth), real estate agencies must take reasonable steps to protect the personal information they hold. If a data breach is likely to result in serious harm, you must notify both the affected individuals and the Office of the Australian Information Commissioner (OAIC).
Failure to comply can lead to:
>Penalties
For companies:
Up to $50 million, or
Three times the value of any benefit obtained through the misuse of information, or
30% of the company’s adjusted turnover for the relevant period — whichever is greater.
For individuals (such as directors): Up to $2.5 million
>Regulatory investigations
>Loss of trust from clients and partners
This isn’t just a matter of ticking a box. It’s about protecting your agency, your clients and your reputation.
How O*NO Legal Can Help
At O*NO Legal, we make the law make sense — and that includes all things cyber and privacy.
We know real estate agencies aren’t tech companies, but that doesn’t mean you’re off the hook when it comes to cyber risk. Our job is to take the legal complexity off your plate so you can focus on running your agency with confidence.
Here’s how we help:
Privacy policies and compliance audits
We review your current privacy practices, identify gaps and give you clear, actionable steps to meet your legal obligations under the Privacy Act.
Staff training and awareness
From phishing scams to personal data protection, we help you educate your team on everyday risks and how to avoid them.
Data breach response planning
We’ll help you prepare for the worst with a breach response plan that keeps you compliant and protects your brand if something goes wrong.
Advice for directors
We work with agency principals and directors to ensure they’re meeting their legal duties when it comes to cyber and data risk so you’re not caught out.
Contract and policy reviews
We review your agreements with clients, contractors and suppliers to ensure the right protections are in place if their systems are compromised.
Book your free 10-minute chat with our legal team today.
Key Takeaways:
Cyber-attacks are a growing threat to real estate agencies.
Directors can be personally liable if they fail to manage cyber risks.
Prevention is essential: training, planning and systems are key.
Legal compliance with privacy and data breach laws is critical.
Help is available. You don’t have to navigate this alone.
Your Next Steps
Cybersecurity and privacy compliance are no longer optional. They’re legal responsibilities. If you’re not sure whether your agency is meeting its obligations under the Privacy Act or Corporations Act, book your free 10-minute chat with our team today.
Boring legal stuff: This article is general information only and cannot be regarded as legal, financial or accounting advice as it does not take into account your personal circumstances. For tailored advice, please contact us. PS - congratulations if you have read this far, you must love legal disclaimers or are a sucker for punishment.