Buying a House? Here's How to Keep Your Documents Secure

Buying a house is probably the largest purchase you will ever make in your lifetime. During this exciting yet stressful process, you want two things to go smoothly: closing the deal on your home without delays and getting definitive proof that you own the property. After all, that's the ultimate goal.

However, some unfortunate accidents might happen if you don't keep your documents organized and secured during this process. Why exactly do you need to manage your home purchase documents? And how can you share these crucial papers safely when required? Let's break this down simply.

Document Sharing Risks When Buying a Home

Real estate agents, title companies, and especially lenders require various documents to verify your identity and ability to finance the purchase of your future home. These documents (ID, pay stubs, bank statements, etc.) contain extensive personal and financial information, from your social security number to your employment information and financial status. So, this creates a collection of highly sensitive information. And who actively seeks such information? Cybercriminals.

Indeed, the extensive databases these intermediaries keep make them prized targets for cyberattacks. Data breaches can expose this information and cause financial damage or identity theft. Some also use unsafe transfer methods and don't encrypt received documents, making it easy for malicious insiders and hackers to misuse the information within.

Home buyers are also at greater risk during this time. Hackers may impersonate breached intermediaries in official-looking emails, urging you to wire money to some offshore account. Likewise, any documents you send via a compromised email could be intercepted. This tactic, known as “business email compromise” (BEC), is increasingly sophisticated and relies on building trust through seemingly legitimate communication. It’s crucial to remember that even a convincing email can be a scam.

Keeping Your Documents Safe

You can't do much about your home-buying intermediaries' cybersecurity practices. However, taking the necessary steps will ensure your documents are protected and out of hackers' reach.

Secure accounts with unique passwords

Before sending anything, make sure your email address, realtor portal accounts, banking platforms, and related digital services have unique login information and use two-factor authentication whenever possible.

This keeps all your other accounts safe, even if one gets compromised. A password manager will help you replace weak and similar passwords with unique, complex ones and store them in an encrypted vault. In fact, you can download a Firefox, Opera, or Chrome password manager and use it as a browser extension. By using one, you will be able to automatically log in to your accounts without manually typing passwords each time. Don't reuse passwords across different platforms - a breach on one site could give attackers access to all your accounts. Two-factor authentication adds an extra layer of security by requiring a code from your phone or email in addition to your password.

Store documents in the cloud

Leaving sensitive documents on your hard drives or as email attachments makes them vulnerable to theft. And let's face it, that's asking for trouble. It's a much better idea to start the document collection process by creating a dedicated folder for them on a secure cloud storage platform.

Any documents you store this way are automatically encrypted. Moreover, you control who can view or handle them and can grant permanent or temporary permissions.

Choose a reputable cloud provider with robust security measures, such as encryption both in transit and at rest. Regularly review access permissions to ensure only authorized individuals have access to your documents.

Double-check all details before sending anything

Cybercriminals who closely monitor well-known intermediaries may contact you from similar-looking email addresses and urge you to provide information or payments. Don't fall for this trap.

Always make sure that the provided information matches the information available on the intermediary's official website. If you're still unsure, directly reach out to your realtor, lender, etc., to verify any requests for money transfers or additional documents before taking action. Pay close attention to the sender’s email address and look for subtle variations. Never click on links or download attachments from suspicious emails. A direct phone call to the intermediary is the safest way to confirm the validity of a request.

Send documents using a secure file-sharing platform

While safe document storage at rest is crucial, so is their encrypted transfer. Once it's time to do so, ensure that intermediaries use a file-sharing platform or suggest one you trust.

Additionally, conducting the transfer through such a platform provides activity tracking. With it, you'll know exactly who accessed each document and when, which helps uncover and prevent suspect behavior.

Insist on secure signing

Maintaining the authenticity and integrity of the purchase agreement, title deed, and other documents establishing payment and ownership is vital. Insist on using a reputable electronic signature service to seal all relevant documents cryptographically. Ditching paper copies in the process will minimize the chances of physical theft.

Conclusion

Buying a home is stressful enough without adding worries about cybersecurity and sharing your personal information with so many different companies. Before using any security platforms or tools, pick out a few options that interest you and search for information about them online, such as the NordPass Wiki or official page. This research helps you choose the right tools to protect your information during the home-buying process. Staying informed about the latest cybersecurity threats and best practices is an ongoing process. Regularly update your software, be cautious of phishing attempts, and trust your instincts if something feels off.

Keep the risks and document protection strategies you learned about here in mind, and expect smooth sailing!