Aggregator moves to boost brokers' cyber safety
Mortgage brokers are increasingly being targeted by cyber criminals using phishing schemes to steal sensitive client and business information, according to cybersecurity experts at aggregator LMG.
The firm is warning brokers of the rising threat of “social engineering” attacks, where criminals manipulate individuals into divulging private data or bypassing security protocols.
The warning comes as the mortgage market shows signs of growth. Loan Market recently reported a 23% increase in pre-approval volumes ahead of the spring selling season, while Ray White, Australia’s largest real estate network, recorded a 16.2% rise in auctions compared to the previous year.
According to David McQueen (pictured above), chief risk officer at LMG, both large brokerage firms and sole operators are at risk due to the high volume of home loans brokers handle.
“When brokers are being sought-out for three out of every four home loans, it’s critical that everyone in their business can recognise threats while busy and under pressure,” McQueen said.
LMG recently launched a series of cyber and compliance education sessions across Australia to help brokers better protect themselves against these types of attacks. The aggregator held its first joint session in Brisbane last week, with a focus on how criminals use social engineering techniques to deceive businesses.
“We recently detected a phishing email where the criminal posed as a struggling first home buyer, trying to manipulate the broker into assisting them,” McQueen said.
The email directed the broker to a folder containing fraudulent payslips and information on a fake property.
McQueen noted that attacks are becoming increasingly sophisticated, with bad actors seeking to build trust with brokers in an effort to exploit them.
“At LMG, we’ve implemented the industry’s first dedicated cybersecurity coach as part of our broader compliance and safety strategy,” he said. “While we have invested in technology to securely share data, we’re also focused on helping brokers recognise evolving threats.”
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