EasyJet, Marks & Spencer, Equifax and the NHS have something in common...
They’ve all been victims of serious data breaches as a result of cyber-attacks. Many millions of their customers have been negatively impacted as personal details, such as names, email addresses, dates of birth, medical records, and even bank account and payment card details, have been compromised or stolen. Sensitive data like this is serious treasure chest for cyber criminals who use it to commit identity theft or sell the details onto others who then use it for phishing and other online scams.
Why mortgage brokers are at risk
You don’t need to be a large retail store or a national airline to attract cyber-attacks. Mortgage brokers are equally at risk of data breaches. Any business that handles highly sensitive, personal data, is in danger of having their systems breached and client files compromised.
The mortgage industry has seen rapid technological change over the past few years, moving away from legacy technology to online cloud and digital systems that have improved connectivity and workflow efficiencies. However, where this has helped brokers to work faster, smarter and more accurately, improved connectivity has also provided cyber-attackers with fewer hurdles. All they need is just one entry point into a system after which they potentially have access to an entire, inter-connected ecosystem of mortgage technology and platforms. Including thousands of client records.
The true cost of data breaches – trust and reputation
Data breaches cost companies. If the source of the leak is down to a failure in ensuring adequate data security practices, companies can find themselves subject to hefty fines. But, more costly than paying out is the impact it could have on your reputation and brand. Customer trust is hard-earned, but easily tested, and even lost for good, in the event of a data breach.
According to a 2024 study from Cisco, 75% of consumers will not purchase from organisations they don’t trust with their data. These figures show that data privacy isn’t just about being compliant - it’s essential for earning customer trust and keeping a business strong long-term.
How do CRM systems protect client data?
Client data is a valuable asset, which is why every mortgage broker in the UK should make it their business to prioritise data security.
One way in which to do this is to store and manage your client records using a CRM system.
CRM systems are specifically designed to protect sensitive client information. How?
1) Encryption
All the information held in your client records is scrambled using encryption, both when it’s stored and sent, so even if the most sophisticated cyber-attacker were to intercept it, they wouldn’t be able to read it.
2) Access and permissions
The many levels of a CRM system can only be accessed by those people who have permission. For example, an administrator could have permission to access client contact information but not highly valuable data, such as bank account details. These permissions are managed by only a select few individuals so you can be certain that access to data is strictly on a ‘need-to-know’ basis.
3) Login
Login security is tight, often involving two-factor authentication (TFA) such as receiving a code to your mobile device or Face ID.
4) Click trail
Every time someone uses your CRM system, it is recorded – every click, every message, every view, every upload. This means that an evidence trail is in place from day 1, so if there is any suspicious activity on your CRM system, it will be quickly flagged, traced back, and investigated.
5) Compliance with data protection
Good CRM systems are built to comply with data protection laws, such as GDPR, so they should automatically manage things like customer consent, and data access requests.
6) Updates and back-ups
CRM providers update their systems regularly, fixing security gaps to stay one step ahead of cyber threats. Data, including client records, is also backed-up often so that in the event of challenges, like a power outage or a cyber-attack, data is saved safely elsewhere.
Why email isn’t safe for sharing sensitive information
Are you still using email to share confidential documents and information? Although email is often seen as a convenient way to communicate with clients and other contacts, it’s definitely not the most secure, or recommended, way to send sensitive data. The dangers with using email include:
• You could send it to the wrong person!
• The information is not encrypted and so can be easily intercepted
• It could end up in spam
• Your email, and the information it contains, can be forwarded on and find itself in the hands of cyber criminals (or anyone else for that matter!)
If you must use email, make sure the documents you share are password protected and encrypted. Use your organisation’s approved secure document sharing platform, such as Microsoft OneDrive or SharePoint.
Sharing documents and sensitive data through a CRM system offers a much more secure alternative to emails. All documents are stored securely on one central platform, into separate client files, with access available only to those individuals who have permission.
Secure messaging portals are in-built to most good CRM systems, so clients and brokers can communicate safely and all messages, as well as documents, are automatically encrypted. In addition, messages and documents are saved into the individual client file, creating an audit trail of communications.
Many CRM systems also have a dedicated client portal which means that clients can login to safely read messages, track the progress of their journey, and complete tasks, all without needing email.
CRM security features to look for – key questions to ask
To guard against data breaches, mortgage brokers would benefit from using a CRM system. But before making the leap, there are five key questions a broker needs to ask a CRM provider:
1. Will my client data automatically be encrypted, both in storage on the central platform and when its’s being shared?
2. Can I control who has access to ensure that users only see the data that’s relevant to their role?
3. Is there the option to manage permissions so that I can limit or revoke access to specific documents or fields?
4. Does the system have a secure client portal so that clients can communicate safely with me, access their records, and complete tasks directly rather than use emails?
5. Are there automatic audit trails built into the system that track who accessed, edited, or shared data? Critical for compliance and accountability!
Final thought – make data security a priority
As cases like EasyJet, M&S, and the NHS show, the fallout from poor data security can be catastrophic, both financially and reputationally. For mortgage brokers handling sensitive client information, the risk is real. A modern CRM system helps protect your business, and clients, from data breaches. Enabling encryption, accessing controls, managing permissions, and triggering audit trails all help in the fight against cyber-attacks. Data breaches damage trust, reputation and credibility - brokers, make data security a priority.
