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June 19, 2019

Protecting Association Data from Cyber Crimes

In our last blog we examined the physical security needs of homeowners associations and how screening, communication, surveillance, and access limitations can bring peace of mind to homeowners. This week, we are looking at some of the steps an HOA and Condo associations can protect their communities from cyber crimes.

Think about all the information that a condo association has at its fingertips. The data kept for Board of Director purposes and billing purposes may include each homeowner’s name, address, phone number, email, bank check routing number, tax information, credit card number, and probably social security number.

Given the scope and depth of the data that a homeowners association has, it would stand to reason that there would be many layers of security to protect that data. Unfortunately, many HOAs do not have the resources to protect sensitive data as they should.

Knowing that defenses may be down in a small business like an HOA, hackers have been known to attack in some common ways. Here are a few questions to consider when arranging your HOA cybersecurity measures.

Who should have access to the data?

Cyber experts believe that HOA boards should determine exactly who can gain access to sensitive data and who will not be given access. Keep the list of people who will have access to only those who will need it to deal with finances and condo owner issues. In addition, HOAs should limit where the data can be accessed. Unfortunately, an association’s odds of falling victim to a successful data breach increase every time someone downloads association information and stores it on their personal computer.

 

Is there an IT consultant who can help?

Every HOA should have an expert they can call upon when there are questions about things like firewalls, dual authentication, passwords, backups, and how to maintain security for the HOA server. An HOA can hire IT experts on a full-time basis, or as contractors. This person can train personnel as to what to look for in suspect or malicious emails, viruses, and security breaches.

 

What type of cyber insurance does your HOA have?

Board members for your HOA should routinely check with their condo insurance broker about the community’s potential cyber risks and what type of cyber insurance coverage may be appropriate for your association. Known also as cyber liability, cyber risk, or data breach insurance, this type of liability insurance protects the HOA in the event of data breaches, viruses, network attacks, computer theft, and other losses or compromises of the HOA’s computers, network, or websites.

Cybercriminals only need to see a small vulnerability to make their way into your HOA data. Do you have a strong security protocol for your association? For more information contact Thayer & Associates, Inc., AMO at 617.354.6480 or visit our website.

 

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