As outsourcing becomes more popular among Australian real estate agencies seeking cost efficiencies, cybersecurity experts are urging caution, especially regarding freelance-based outsourcing.
Shimazaki Sentinel, a leading Australian cybersecurity firm, highlights the hidden dangers of this approach, warning that it can leave agencies exposed to cybersecurity risks, unclear liability, and potential data breaches.
“Outsourcing can seem attractive for cutting operational costs, but when agencies unknowingly rely on freelancers for key tasks, it opens up serious risks,” said Thomas Jreige, Managing Partner and Director of Shimazaki Sentinel.
“Real estate firms often handle sensitive information, and freelancers—who may lack rigorous oversight—can become weak links in data security.”
With outsourcing providers increasingly subcontracting to freelancers, often without informing clients, Australian real estate agencies need to be aware of the specific risks this presents.
Key risks of freelance-based outsourcing
- Lack of control and accountability: Freelancers operate with less oversight than full-time employees, which can create significant risks for agencies handling sensitive client and financial data. Without established security protocols, data can become vulnerable to breaches, potentially harming the agency’s reputation.
- Legal complexities and liability issues: In the event of a data breach, it can be challenging to determine where liability lies. Freelancers, overseas providers, or the Australian agency could all potentially be at fault, leading to complex legal battles and potential fines. For real estate businesses, this ambiguity can be costly.
- Cybersecurity threats: Freelancers often work on personal devices that may not meet the security standards required for protecting sensitive data. Common risks include unsecured infrastructure, poor adherence to data protection protocols, and minimal cybersecurity vetting, which can open the door to intentional or unintentional data leaks. Such vulnerabilities could lead to costly data breaches, loss of client trust, and even the loss of insurance coverage if agencies fail to enforce proper security measures.
Best Practices for Minimising Risks
Real estate agencies are recommended to take the following steps to mitigate these risks:
- Strengthening contracts: Agencies should work closely with their outsourcing providers to ensure contracts outline clear responsibilities for data handling and security protocols. Contracts should:
- Define liability in the event of data breaches
- Require secure IT infrastructure and regular security audits
- Include non-disclosure agreements and robust data handling protocols
- Implementing robust cybersecurity measures: Enforcing strong security protocols for all outsourced operations is essential. This includes:
- Mandating secure, vetted equipment and VPNs for all contractors
- Regular security training for all outsourced workers, including freelancers
- Auditing compliance with cybersecurity protocols to maintain insurance coverage
- Rigorous vetting of providers and freelancers: Agencies should demand transparency from outsourcing providers, including cybersecurity audit reports, background checks, and clarity around who is handling sensitive information.
- Choosing local providers with international reach: By engaging Australian-registered providers who manage overseas teams directly, agencies ensure accountability under Australian law. This approach enables easier enforcement of contracts, NDAs, and compliance with data protection regulations.
