Body corporates face growing cybersecurity risks as they manage financial systems, resident information, building access details, and digital communication platforms. Common threats include phishing scams, invoice fraud, data breaches, and ransomware attacks. We take a closer look.
What do Body Corporates Need to Know About Cybersecurity?
Body corporates need to understand the serious implications of poor cybersecurity measures. With sensitive data on residents, contractors, and financial accounts often stored or transmitted digitally, poor cybersecurity can have serious implications within a body corporate. Cybercrime can result in data breaches, financial fraud, reputational damage, and even legal liability.
Who is Responsible for Cybersecurity in a Body Corporate?
Under New Zealand law, a body corporate is a legal entity and therefore must take reasonable steps to protect its digital assets. As with health and safety, body corporate managers act as “Persons with Management or Control” and share responsibility for implementing secure systems and processes.
A Body Corporate’s obligations include:
- Ensuring sensitive information is securely stored and backed up.
- Using secure platforms for communication and data sharing.
- Verifying the authenticity of financial requests, especially during invoicing and contractor payments.
- Implementing basic cybersecurity protocols such as multi-factor authentication (MFA), secure passwords, and access controls.
- Reporting and responding to data breaches in line with the Privacy Act 2020.
Read about Health and Safety Responsibilities in a Body Corporate.
What are the Risks of Poor Cybersecurity?
The consequences of a cybersecurity breach can be severe and wide-reaching. Financial losses are common, particularly through invoice redirection scams, which can result in thousands of dollars being transferred to fraudulent accounts. Data breaches may also expose or compromise residents’ personal information, putting individuals at risk and potentially triggering legal obligations under the Privacy Act. Long-term reputational damage must also be considered.
How Can Body Corporate Management Companies Help Body Corporates Avoid Cybercrime?
Professional body corporate management companies play a key role in helping body corporates protect themselves from cyber threats. By implementing secure digital platforms, managing access permissions, and enforcing best practices such as two-factor authentication and encrypted communications, management firms can significantly reduce the risk of breaches. While no system is immune, taking a structured and proactive approach can significantly reduce the risk of a cyber incident.
