The 15th Annual Real Estate Summit

Raymond G LeclairVice President, Public Affairs

Lawyers’ Professional Indemnity Company

April 18, 2018Law Society of Ontario

Remote Access Risks

Cyber Risks

REPCO Availability

Cyber Risks

• General cautions:• Unsecured internet connections

• Coffee shops, hotel business centers, malls, hotel rooms(?)

• Third party computers• Library, hotel business centers, Airbnb

host’s computer, internet cafe

New technologydemanded by clients

http://www.practicepro.ca/2017/08/reflections-on-technology-changes-in-real-estate-practice/

Advantages of

portals

CybercrimeTargetsHow?•Spam and phishing messages;•Installing malware;•Etc.See special LawPRO magazine on cybercrime

http://www.practicepro.ca/LawPROmag/LawPROmagazine12_4_Dec2013.pdf

“Bad” cheque fraud

Types of “Bad” Cheques Scam- Real Estate- Business Loan - Debt Collection- Collaborative Family Law Agreement- Employee Theft- Retainer or Deposit Refunds

• Email from new client• Matter involves payment of some type• You receive bad cheque• Deposit it in your trust account• Disburse (wire) funds• Left with trust account shortfall

What is phishing?Trying to obtain financial or other confidential information from Internet user or getting the user to do something or go to a website

Typically, by sending an email that looks as if it is from a legitimate organization

A phishing attack directed at a specific person

Will use information known of that person (posted online – Facebook, Twitter, Amazon, LinkedIn, etc.) to make it more convincing

To: Undisclosed recipientsFrom: BMO <xxcze@bmocm.com>Subject: New Security Measures

To protect your account, Bank of Montreal has implemented security questions and answers for you to create and use whenever you log in from a different location.

Please create security questions and answers for your BMO online account by <<clicking here >>

We strongly advise you to enroll now. The new login method will be effective within the next 24 hours.

Thank you for using BMO.

Regards,BMO Support Dept.

Fraud by Hacked Email Account

•Client email account hacked•Hackers monitor email•Watch for discussion of payment of some sort•Hackers send spoofed email redirecting payment (e.g. once settlement is achieved or closing upcoming)•Variations on who is hacked

– Lawyer, self-rep opponent, third-party dealing with client

•Subscribe to LAWPRO Avoid A Claim to get updates and read more about how these and other frauds work

• http://avoidaclaim.com/subscribe

Corporate records fraudIdentity theft of the corporationFraudster files change of Directors and Officers and/or

Registered OfficeShows up with “made up” minute bookAttempts to refinance or sell propertyBe aware, look for:

• Document Last filed on Corporate Profile Report• Get listing of filings for the corporation

Article: http://avoidaclaim.com/2017/recognizing-the-red-flags-of-real-estate-scams-involving-corporate-identity-theft/

REPCO Availability• Self-Assessment Tool

• https://www.practicepro.ca/2007/10/self-assessment-tool-for-real-estate-practice-coverage-option/

• Real Estate Practice Coverage Option• http://lawpro.ca/insurance/Practice_Type/REPCO_coverage.asp

• Must be ELIGIBLE to apply• Means eligible to practice REAL ESTATE LAW in

Ontario as permitted by the Law Society of Ontario• Not eligible, lawyers:

• in bankruptcy• convicted or disciplined re: real estate fraud• Under investigation, where LSO obtains interlocutory

suspension or restriction or undertaking not to practice real estate

Supplemental Materials•Tech tip: Don't take the bait on a spear phishing attack•http://www.practicepro.ca/LAWPROMag/Dont_Take_Bait_Phishing_Attack.pdf

•Tech tip: Danger - when a hacker emails you instructions in the name of your client•http://www.practicepro.ca/LAWPROMag/Danger_Hacker_Email_Instructions.pdf

•Tech tip: Keeping your passwords strong and secure •http://www.practicepro.ca/LawPROmag/Keeping_Passwords_Secure.pdf

•Tech tip: 15 tips for preventing identity theft and online fraud •http://www.practicepro.ca/LawPROmag/TechTip-15-Tips-Identity-Fraud.pdf

•Fraud: How to avoid becoming its next victim•http://www.practicepro.ca/practice/pdf/FraudInfoSheet.pdf

•Show me the money – Funds handling•http://www.practicepro.ca/LawPROmag/Wire_Transfer_Benefits.pdf

•PracticePRO's best claims prevention tools and resources•http://www.practicepro.ca/LAWPROMag/LAWPRO_best_claims_prevention_tools.pdf

•Run-Off Insurance Coverage•http://lawpro.ca/insurance/insurance_type/run-off_ins_cover.asp

Questions?

For more info:

LAWPROTitlePLUS Home Buying Guide

@lawpro@practicepro@titlepluscanada

LAWPROLAWPRO staff

lawpro.ca

titleplus.ca lawpro.ca/excess practicepro.ca

Contact InfoRaymond G Leclair, LL.B.Vice President, Public Affairs, LAWPRO, Toronto(416) 598-5890 or 1-800-410-1013ray.leclair@lawpro.ca

www.practicepro.ca and www.lawpro.caBlog: AvoidAClaim.com;

LAWPRO is on LinkedIn & FacebookTwitter: @LAWPRO and @practicePRO

Connect with me: • Linkedin: Raymond G Leclair• Twitter: @RayLeclair