Wednesday, October 1, 2014

BREACH: Apartment REIT's Data Breach Could Be Harbinger via OSINT-X Newswires

The potential long-term effects of Essex Property Trust's data breach are not yet known, yet this breach may serve as a harbinger of future problems for multifamily REITs, says Fitch Ratings.

On Sept. 29, Essex filed an 8-K indicating that its computer networks containing personal and proprietary information had been compromised by a cyber-intrusion and that the company was determining whether any employee or tenant data is at risk.

The threat of data breaches is not unique to apartment REITs and is a legitimate risk for all corporations. Large, multinational corporations such as Target, Home Depot and J.P. Morgan Chase have been victims of breaches and it remains to be seen whether the security systems and business insurance policies employed by REITs will provide a sufficient barrier.

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