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A major German property management firm, DGIM, has suffered a cyberattack, compromising sensitive customer data and raising concerns about the security measures of both DGIM and its parent company, DZ Bank. As we discuss in today's email, this breach highlights the growing threat of cyberattacks and the need for enhanced vigilance in protecting sensitive information, particularly in the financial and real estate sectors.

This week in Propmodo Technology, we are exploring Property Research with the support of commercial real estate marketplace, Crexi. Property research has evolved from manual foot traffic counts to advanced technologies like computer vision, providing deeper insights into space usage and occupant behavior. These advancements inform property value and lease terms, democratizing foot traffic analysis and enhancing property management strategies.

Curious about what to expect in the softening multifamily market in the second half of 2024? Sign up for our next Propmodo Live webinar on July 9th, where we will talk to experts from JLL, Defigo, and Veritas about how they plan to attract and retain residents in the changing multifamily landscape. We will explore how owners and managers can improve operational efficiencies while navigating a landscape of compliance hurdles and evolving technology.

Now, let's dig in!

Cyberattack on German Real Estate Company Exposes Vulnerabilities in the Industry

News broke this weekend of a successful cyberattack against a large German property management firm. According to reports, DG Immobilien Management (DGIM) was targeted in a hack that stole sensitive information from tens of thousands of customers. The company has not disclosed much about the breach; a spokesperson only stated that a task force has been formed and they are “currently working on everything.” They confirmed that the stolen data includes not only addresses and email information but also account details, tax data, and supporting documents.

This hack will likely shake confidence in DGIM and its parent company, DZ Bank. DZ Bank is the third-largest bank in Germany and has a history dating back to 1883, when it was founded with funding from the Prussian state to provide lending to manufacturing cooperatives. In addition to being a lending institution, DZ Bank is one of the major credit rating agencies in Germany and has even created its own cryptocurrency platform.

As DZ Bank is not a public company, it is difficult to gauge investor reactions to the news. But, they are likely questioning how such a breach could happen to a traditionally stable financial institution. A brief search of DZ Bank’s IT infrastructure revealed a marketing article from Google discussing their switch to the cloud-based app development tool Cloud Run. The company boasts a 90 percent reduction in infrastructure costs and increased efficiency after the switch. “As a 150-year-old institution, DZ Bank has a lot of legacy infrastructure, much of it still running on-premises as virtual machines (VMs), with over 55,000 CPUs. On-prem VMs require a lot of effort to manage, and they're expensive. A few years ago, we decided to modernize our stack to reduce our overhead, increase developer velocity, and strengthen our competitiveness,” said Tim Harper, Cloud Engineer at DZ Bank.

There has been an increase in cyberattacks recently, with most attributed to rogue states like Russia and North Korea. These attacks have been more successful than ever. Earlier this month, a ransomware attack on a healthcare company resulted in a $22 million payout to the Russian hacking group responsible. This weekend, a car dealership support software was hacked, plunging the auto retail industry into disarray.

Every company dealing with sensitive information should be on high alert in the current cyber climate. Banks and real estate investment vehicles must be especially vigilant. As confidence in the future of the real estate market grows, it would be a shame to derail that momentum with an embarrassing and potentially costly data breach.

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Propmodo Technology: Property Research

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