Shaping a secure future for property transactions with AI
Whether you know it or not, AI is already a part of your daily routine. Ever had a form autofill your details or had a voicemail transcribed directly to text? These conveniences are thanks to AI.
Property markets across the globe are integrating AI, optimizing processes, and making transactions more efficient. From forecasting floods to streamlining insurance claims to matching clients with homes that meet just the right criteria, this CoreLogic technology incorporating AI features is simplifying transactions and enhancing customer experiences.
But with this power comes a looming threat— as AI becomes an integral part of daily operations, its underlying vulnerabilities become more evident.
AI can automate mundane tasks, provide accurate predictions, and even personalize client interactions. However, without robust cybersecurity measures, these benefits could be overshadowed by potential risks.
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“AI is there to save some time, right? And everyone would like to save time where they can, but you have to understand what the consequences of that are,” explains CoreLogic Deputy Chief Information Security Officer Rob Tennant. “Everyone’s got to take some personal accountability for the security of not only their own data but also the security and the protection of the consumer’s data.”
AI in Real Estate: The Cybersecurity Tug-O-War
The real estate industry is no stranger to cyberthreats. In 2023 alone, the FBI reported over 9,521 real estate fraud complaints, totaling more than $145 million in losses. With high-value transactions occurring daily, the property sector is a prime target for cybercriminals, who are now using AI to heighten the efficacy of their attacks.
Fraudsters leverage AI to create convincing fake documents, making it challenging to discern genuine transactions from fraudulent ones. Technologies like generative AI further sharpen criminals’ ability to execute cyberattacks more efficiently, targeting specific groups — such as realtors in a particular state —with tailored messages to increase their chances of success.
While document falsification and social engineering are not the only strategies used in cyberattacks, they are effective ones. Such advancements make it imperative to use AI defensively to develop strategies that outsmart cybercriminals. As a result, companies must act proactively to protect their clients and operations from these evolving threats.
How Can Gen AI Be Used in Cybersecurity?
While AI opens new avenues for cyberthreats, it also provides newfound defense capabilities.
Generative AI can simulate potential cyberattack scenarios, offering an invaluable tool for security teams to anticipate and mitigate risks. By generating realistic attack patterns, AI enables firms to stress-test their defenses and develop comprehensive security protocols.
AI also aids in automating threat detection. With algorithms capable of processing vast datasets in real time, AI systems can recognize unusual patterns that may indicate a cyberattack. This proactive approach allows organizations to respond swiftly, minimizing potential damage.
Additionally, AI technologies such as biometric authentication enhance identity verification processes, reducing fraud risk in property transactions. When used responsibly, AI can be a formidable ally in maintaining cybersecurity.
“Culture eats strategy for breakfast.”
— CoreLogic Deputy Chief Information Security Officer Rob Tennant.
Real Estate Due Diligence and AI: Creating a Culture of Security
When companies maintain a mature cybersecurity position, it demonstrates a commitment to protecting data, safeguarding clients’ interests, and maintaining trust. However, to successfully accomplish this goal, businesses need to develop a security-focused culture that permeates every level of an organization.
“Culture eats strategy for breakfast,” Tennant notes, underscoring that without a cultural shift toward proactive security measures that are accepted and endorsed across all levels, even the best strategies can falter. Establishing a security-focused culture means fostering awareness, ensuring continuous education, and promoting personal accountability across all levels of staff.
In the data-rich property industry, CoreLogic recognizes the only thing more important than having top-notch data is protecting that data. By employing AI to identify red flags and routinely engaging cybersecurity experts, CoreLogic ensures that its solutions are both innovative and secure. These efforts demonstrate a commitment to advancing real estate technology responsibly.
Keeping pace with evolving trends in AI security is essential for real estate and property market professionals as well as cybersecurity experts, and education plays a crucial role in propelling a cultural shift to become more cybersecurity conscious.
Continuous training on emerging cyberthreats and best practices empowers employees to identify potential risks and respond appropriately. When security is ingrained into a company’s culture, professionals across the property market can become proactive defenders.
By understanding the trends in AI security, organizations can refine their strategies and implement the most effective security measures to protect their assets.
- Enhanced Threat Detection
AI-powered systems are revolutionizing threat detection in the real estate industry. By analyzing extensive datasets, these systems identify anomalies that could signify a cyberthreat to mitigate risks before they escalate.
Through sophisticated algorithms, AI spots patterns that human analysts might miss. For example, AI can recognize subtle but significant changes in network traffic, which could indicate a data breach. This capability transforms how real estate companies safeguard their digital assets.
- Automated Responses for Real-Time Defense
Once a threat is detected, AI can execute predefined responses to neutralize the danger. Whether by isolating compromised systems or blocking malicious IP addresses, these actions occur without human intervention, providing a critical time advantage in thwarting cyberattacks.
This automation both enhances response times and reduces the potential for human error during high-pressure situations. AI-driven responses ensure consistent, accurate defensive measures are taken, preserving the integrity of sensitive information.
- Improved Verification Processes
In an age where identity theft is rampant, AI technologies like biometric authentication offer heightened security for verifying identities in property transactions. By leveraging unique human traits, such as fingerprints or facial recognition, AI minimizes the risk of fraudulent activities.
These advanced verification methods provide an additional security layer, reassuring clients and stakeholders alike. AI-driven authentication processes streamline transactions, ensuring only authorized individuals access sensitive data and complete high-value deals.
Securing Real Estate Transactions With AI Tools
Real estate transactions involve significant amounts of sensitive data, making them attractive targets for cybercriminals. Fortunately, AI-driven solutions enhance security measures throughout the transaction process.
$145M
FBI-reported losses from real estate fraud complaints in 2023.
By implementing CoreAI-powered fraud detection systems from CoreLogic, companies can identify suspicious activities before they cause harm.
Incorporating AI systems that recognize and neutralize fabricated content is crucial for maintaining secure communications. These systems analyze patterns and behaviors associated with fraudulent transactions, providing valuable insights to prevent breaches.
After all, securing great property data is the difference between getting ahead and falling behind.
“At CoreLogic, we take data protection seriously. The data is the currency,” says Amy Gromowski, CoreLogic vice president, head of Data Science. “We have a strong governance program starting with an AI Governance Committee that oversees and reviews every use case, data use rights and the application of technology in AI solutions. Our culture and the process within our business ensures we are building solutions that pass a host of responsible AI criteria.”
Balancing AI and Cybersecurity in Real Estate
The integration of AI into the real estate and property market presents both exciting opportunities and significant challenges. Forget analyzing hundreds of thousands of data points and observations. CoreAI™-powered property technology from CoreLogic can do that for you and distill it down into this one piece of information that you can use to make decisions to stay competitive in a rapidly changing market.
Even with the clear advantages of this technology, for experts like CoreLogic, the focus remains on developing technology solutions that prioritize security alongside innovation. By fostering a culture of security and adopting AI responsibly, companies can protect their clients and data while reaping the benefits of AI.
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