How to Keep Real Estate Transactions Secure
Updated May 1, 2026
Real estate transactions are moving online, and so are the threats targeting them. Here's how to protect every stage of the deal.
Real estate is one of the highest-value targets for fraud, and the threat is serious enough that federal agencies like FinCEN dedicate entire programs to tracking suspicious activity across the mortgage and real estate industry. Every transaction involves large sums of money and a vast amount of personal information: social security numbers, credit histories, bank account details. Cybercriminals are increasingly interested in that data. Stolen information can be used to steal identities, open fake accounts, and fuel fraud schemes that extend far beyond a single closing.
Today, security means keeping both money and data safe at every stage of a real estate transaction. Human error, weak cybersecurity controls, and increasingly sophisticated fraud schemes all leave the door open for criminal activity. Lenders, title insurers, and agents all share the same responsibility: keeping their clients' online transactions secure.
Why moving real estate opnline creates new security risks
All parts of real estate transactions are now able to be done completely online, from mortgage closings to online payments to notarizations and eSigning. Lending companies that specialize in online lending are growing quickly because of the convenience, flexibility, and cost savings they offer customers. And homebuyers aren't the only beneficiaries when it comes to moving real estate transactions online. Lenders can make more revenue due to shorter processing times and major cost savings when they offer full online mortgage closings.
But every digital convenience also opens a new attack surface. FinCEN tracks suspected mortgage fraud and money laundering across both residential and commercial real estate, and their data shows suspicious activity reports continue to rise. The more that moves online, the more critical it becomes to build security into every step.
As digital adoption continues to accelerate across the industry, cybersecurity can't be an afterthought. It has to be built into every platform, every workflow, and every client interaction.
How to protect clients from real estate fraud
Every real estate transaction moves two things: money and personal data. Social security numbers, credit histories, account numbers, all of it flows through the closing process, and all of it is a target. The risks are real, but so are the controls. Lenders and agents who build security into every stage of the transaction are the ones clients can trust.
1. Use secure passwords
A study showed that 83% of Americans use weak passwords, which makes them easy targets for cybercriminals. Particularly for real estate transactions, it's important for clients to use strong, secure passwords for all of the technologies used during the eClosing process.
2. Don't fall victim to phishing scams
Emails that look like official business can be fake, sent by someone posing as a contact at a bank or mortgage company. Lenders should make it known to their customers who they can expect communications from so there's no question as to whether an email is legitimate.
3. State sdecurity measures up front
Online closings are still a relatively new concept for many clients. Address security concerns at the start of every transaction. That conversation establishes trust, sets clear expectations, and leads to a smoother customer experience throughout the process.
4. Secure the URL
Before asking clients to make any payments online or share any valuable information, verify the platform or web address is accurate and secure. It will usually either match the URL of the lender or come from an approved financial partner. Some companies do use third-party websites for specific transactions, so if the URL is unfamiliar, verify it before proceeding.
5. Only share personal data with a verified source
If someone involved in the real estate transaction asks for personal information about your client, such as a social security number or bank account number, confirm that person is authorized to receive that information and that you're authorized to provide it. When in doubt, verify directly through an established contact channel, not through the requestor.
Digital real estate transactions carry real risk, but the industry has real controls to match. Lenders and agents who make security a deliberate, built-in part of their process, rather than an afterthought, are the ones best positioned to protect their clients and their own operations.
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