Protecting Data in Proptech: The Necessity of Robust Security Protocols

In today’s rapidly evolving digital landscape, security has become paramount for proptech and property management companies alike.

As these industries harness the power of technology to streamline operations and enhance customer experiences, the need for robust security measures cannot be overstated. It’s not just about safeguarding their own data and systems; these companies must also ensure that their network of vendors and partners adheres to stringent security protocols.

Embracing globally recognized standards like SOC 2 isn’t just a checkbox—it’s a proactive step towards fortifying defenses, maintaining trust with stakeholders, and safeguarding sensitive information in an increasingly interconnected world. This blog explores why prioritizing security is not just a necessity but a strategic imperative for the future of proptech.

Importance of robust security measures

Businesses need to be focused more and more on security as the threat of cybercrime grows.  In fact, according to a recent study by IBM Security, the average cost of a data breach in 2020 was $3.86 million. This staggering amount not only includes financial loss but also reputational damage and potential legal consequences. And with the rise of remote work and cloud-based technology, the need for robust security measures has become even more pressing.

For proptech companies, this means implementing strong security protocols and standards like SOC 2 or ISO 27001 to protect their own data as well as that of their clients and partners.

SOC 2 Compliance

SOC 2 outlines standards for handling customer data according to five trust service principles: security, availability, processing integrity, confidentiality, and privacy. In order to comply with SOC 2 standards, an outside audit must be completed. The auditor will assess the extent to which the business complies with one or more of the five trust principles based on the systems and processes in place.

It’s important to note that many security standards like SOC 2 are only good for a finite period of time (typically one year). After that, your vendor will need to furnish you with an updated report.

SOC 2 Type I vs. SOC 2 Type II

There are two different types of SOC 2 security reports. The SOC 2 Type I report assesses the efficiency of your design controls and the operating effectiveness of your systems at a set point in time. It confirms that your security systems and controls are all-encompassing and designed properly.

The SOC 2 Type II report assesses the operating effectiveness of your internal controls over a period of time, usually 6-12 months. These audits require a greater investment of time, money, and company resources.

Questions to ask vendors

Before selecting vendors or providers that handle data, you should ask them the following questions:

• Do you follow any kind of security standard (e.g. SOC 2 Type 2)? 
• When was it last updated?
• Do you have any additional plans or standards on your security roadmap?
• Have you ever suffered a breach in the past? 
• Scrutinize Third-Party’s Trustworthiness
• Verify Third-Parties Legal, Regulatory, and Standards Obligation(s):
• Does the Third-Party have an established security program? If yes, does the scope of the program include all information collected, processed, and stored?
• Request documentation of the third party’s information security standards, procedures, and policies for compliance with legal, regulatory, and standards obligations.
• Request any independent audit reports

Be wary of vendors who claim to have rigorous security controls but cannot back this up. Watch for vague language like “We use SOC 2 servers.” This is not the same as your vendor’s having a strong security posture; it is effectively only a statement that they are using something like AWS or Google Cloud.

To sum up

In an industry where sensitive information such as financial records, client data, and property details are constantly shared between different parties, strict security measures are crucial.

Snappt adheres to the highest security standards and is proud to be SOC 2 Type II compliant. By choosing Snappt, you can rest easy knowing that we take the protection of partner and client data seriously.

Ready to protect your properties?

Chat with our sales team to learn about our comprehensive fraud solution

Let’s Talk