And these laws have compounded the failure in Australian real estate, which is under siege. Not from rising interest rates, but from something far more insidious: cyber fraud. We’re about stopping these scams, which are ripping off Australians to the tune of millions but are fuelling transnational organized crime. Mosley stated that the old ways of doing things, such as email chains and paper documents, are inefficient by design. In fact, they can even be dangerous!
Australians losing staggering amounts to cyber-fraud, such as over $350 million to payment redirection scams just last year, should be our alarm clock. And let's be clear: relying on outdated identity verification processes is like leaving your front door unlocked. It’s like rolling out the red carpet invitation for criminals to walk right in.
It's not all doom and gloom. There's a powerful weapon we can deploy right now: digital identity.
Think of it like this: remember the Wild West? No rules, no sheriff, just chaos. Real estate cyber security is pretty much like that at the moment. Digital IDs are the equivalent of bringing in the law – verifiable, unalterable, and a strong deterrent to nefarious actors. So it’s about time to put away the stagecoach and get on the digital bullet train.
Here are 7 ways digital IDs can revolutionize real estate security, immediately:
1. Blockchain's Immutable Proof of Identity
We need to talk about the backbone of this revolution: blockchain. Having spent the past dozen years designing DeFi and NFT structures. Blockchain’s immutability is a true game-changer, and I can speak to that personally! Picture this scenario, where your digital identity is stored on a permanent, immutable ledger that even a hacker cannot change. This isn't science fiction; it's available today. Here is where the libertarian streak comes into play. People control their own data, rather than deposit it into a single, centralized database that can be hacked.
2. Multi-Factor Authentication Everywhere
It’s staggering to consider that most real estate transactions today are still done using single factor authentication (i.e., a password). That’s the equivalent of securing your home with a padlock. Multi-factor authentication (MFA) – requiring a code from your phone, a biometric scan, something more – adds layers of security. Implement it everywhere: access to client data, financial transactions, document signing. No exceptions. It’s the foundational cyber hygiene, as essential as washing your hands to stay healthy.
3. Smart Contracts Automate Escrow Security
Think escrow accounts are safe? Think again. Payment redirection fraud is rampant. Smart contracts – self-executing contracts on the blockchain – allow funds to be automatically released when certain conditions are met. This removes the human factor, and thus, the potential for fraudulent tampering. Escrow becomes unhackable.
4. Encrypted Document Signing is a Must
Unstructured email-based communications are a petri-dish for duplicitous activity. Move to encrypted electronic document signing services that include digital identity verification. We FLK It Over FLK It Over is an excellent case-in-point, demonstrating that security doesn’t need to be sacrificed on the altar of efficiency. It’s not just about streamlining processes, but at the same time, it’s about fortifying those processes.
5. Real-Time Identity Verification Systems
Outdated identity verification processes are a joke. For enabling this kind of trust, we need real-time systems that can instantly and infallibly verify people’s identities against trusted databases. Imagine government records, credit bureaus—or why not—social media profiles (with user consent, of course). This features immediately alerts bad activity and stops impersonation in its tracks.
6. Education and Training: Empower Your Team
After all, technology is only as good as the people using it! Ensure that you’re investing in quality, thorough cybersecurity training for all your staff. Educate them about how to spot phishing attempts, how to use MFA correctly, and why protecting their digital identity matters. They are your first line of defense.
7. Embrace Regulation, Don't Fear It
The Digital ID Act 2024 and soon-to-be-passed Anti-Money Laundering regulations are not burdens—they’re opportunities. Don’t fight these regulations, instead use them as a motivation to install more modern security infrastructure and technology. Digital identity tools are core to compliance and to protecting your business from threats as well. It’s not just a matter of avoiding expensive fines or penalties, though. Driving IT transparency helps build durable trust with your clients’ customers, too. It's about integrity.
Think about the art world. For centuries, provenance — the history of ownership — has been central to establishing authenticity and avoiding fraud. Digital IDs would be one way to bring that same level of transparency and security to real estate. We can create an immutable record of ownership, transactions, and property details, making it virtually impossible for criminals to operate undetected.
The Australian property sector is at an important juncture. Let us make the decision to reverse course on this path of fragility, danger and defensiveness. We could use the potential of the digital identity revolution to build a more secure and trustworthy future. The choice is ours. Don’t get caught off guard by the next data breach or the next multi-million dollar government scam. Take action today. By investing in digital identity solutions, training your workforce, and defending your clients’ identities, you’ll be on the frontlines of fighting fraud. The future of the industry real estate depends on it.
The Stakes are High, the Time is Now.
The Australian real estate industry is at a crossroads. We can continue down the path of vulnerability and risk, or we can embrace the power of digital identity to build a more secure and trustworthy future. The choice is ours. Don't wait for the next data breach or the next multi-million dollar scam. Take action today. Invest in digital identity solutions, train your team, and protect your clients. The future of real estate depends on it.
What are you waiting for?
