Online Real Estate Transactions - Fear of Cybercrime Attacks

ONLINE REAL ESTATE TRANSACTIONS: RISKS OF CYBERCRIME ATTACKS

Online real estate transactions are widely considered secure, transparent, and effective in reducing fraud. However, given the high value of real estate assets, they remain prime targets for cybercriminals, posing significant risks of data breaches and compromised security. These concerns were discussed at the seminar "Ensuring Legal Safety in Digital Real Estate Transactions and Electronic Notarization Solutions," jointly organized by the Vietnam Real Estate Association (VNREA) and the Vietnam Notary Association.

CURRENT LIMITATIONS IN REAL ESTATE TRANSACTION PROCESSES

The existing real estate transaction process still exhibits numerous shortcomings, failing to meet the transparency and efficiency demands of the digital economy. Inconsistencies in implementation and information systems create legal risks, increase social costs, and erode public and investor confidence.

In this context, digital transformation—particularly electronic notarization—has emerged as a critical solution to foster a healthier and more sustainable real estate market.

REAL ESTATE AS A HIGH VALUE TARGET FOR CYBERCRIME

Real estate assets hold substantial value, making legal security in transactions a top priority for both the government and citizens. Notarization serves as a "gatekeeper," ensuring safe, transparent, and legally compliant transactions, which is especially crucial in today’s digital landscape.

Mr. Dao Duy An, Secretary General of the Vietnam Notary Association, highlighted the benefits of electronic notarization, including seamless integration with online public services, support for real estate exchange platforms, and enhanced transparency. The national notarization database is gradually being completed and linked with land, asset, civil status, and tax records. Publicly accessible and verifiable transaction data can effectively prevent fraudulent activities such as multiple sales of the same property, concealment of legal status, or artificial price inflation.

"We have piloted an online electronic notarization model where buyers and sellers in Hanoi and Ho Chi Minh City can complete transactions without physical interaction, under the simultaneous supervision of notaries at each location," Mr. An explained. "Electronic notarization even allows overseas clients to authorize domestic real estate transactions quickly through embassies."

He affirmed that the notary sector is fully prepared for digital transformation and online real estate transactions, reinforcing trust in the market.

CHALLENGES AND CONCERNS IN DIGITAL NOTARIZATION

Despite these advantages, experts have raised concerns about the digital notarization of real estate transactions in Vietnam. Mr. Phan Duc Hieu, a member of the National Assembly’s Committee for Economic and Financial Affairs, questioned whether notarization remains necessary in the digital age and, if so, in which areas. He emphasized the need to streamline procedures to avoid unnecessary bureaucracy and waste.

"While notarization has some digital tools, is the transition from traditional to electronic models truly sufficient?" Mr. Hieu asked. "The ultimate goal of digital notarization should be to minimize paperwork and costs. Simply digitizing paper documents does not constitute true electronic notarization."

Similarly, Associate Professor Dr. Nguyen Quang Tuyen, Vice Chairman of the Council and Head of the Economic Law Department at Hanoi Law University, expressed concerns about potential cost increases, data security risks, and privacy violations. He noted that some entities sell personal data for profit, while others fall victim to cyberattacks.

"The trend toward electronic notarization should aim to reduce administrative procedures by at least 30%," he emphasized, adding that Vietnam’s digital infrastructure remains weak, particularly in remote areas.

Regarding real estate transactions, Dr. Tuyen argued that they are civil transactions based on mutual consent, making mandatory notarization in all cases unnecessary. He also highlighted unresolved issues in notarization practices, including inconsistent legal frameworks for electronic notarization, data storage, and digital document usage. Many notary offices lack the technological infrastructure to meet speed, security, and long term storage requirements. Integration with national databases on population, land, and enterprises remains fragmented, complicating verification processes.

Additionally, limited digital literacy among staff and public skepticism toward the legal validity of electronic records pose challenges. High value real estate transactions are particularly vulnerable to cyberattacks, leading to data leaks or forgery risks. With AI driven impersonation becoming more sophisticated, the absence of in person verification could undermine the accuracy of identity and consent confirmation.

LEGAL AND TECHNOLOGICAL OBSTACLES

The legal framework for electronic notarization, data storage, and digital document recognition remains inconsistent, creating barriers to the legal acceptance of electronic notarization records. Many notary offices lack the technological capacity for speed, security, and long term data retention. Poor integration with national databases on population, land, and enterprises further complicates information verification.

Public distrust in the legal validity of digital records persists, while limited digital skills among personnel hinder progress. High value real estate transactions remain attractive targets for cybercriminals, increasing the risk of data breaches and fraud. As AI driven impersonation grows more advanced, remote notarization may reduce the effectiveness of identity and consent verification.

EXPERTS CALL FOR COMPREHENSIVE REFORMS

To address these challenges, experts recommend:
Clarifying the necessity of notarization in the digital era to avoid redundant procedures.
Strengthening cybersecurity measures to protect sensitive transaction data.
Improving digital infrastructure , particularly in rural and remote areas.
Enhancing public awareness of electronic notarization benefits and legal validity.
Streamlining administrative processes to reduce costs and improve efficiency.

Without these reforms, the risks of cybercrime and legal disputes in online real estate transactions will persist, undermining market stability and public confidence.