Cyberattack Freezes Real Estate Transactions In Suffolk County

Suffolk County Legislature, where a cyber attack took servers offline almost three weeks ago.
Suffolk County Legislature, Where A Cyber Attack Took Servers Offline Almost Three Weeks Ago.

Real estate deals have ground to a halt following a cyberattack on the Suffolk County government earlier this month.

Verifying property titles and filing records has been impossible since the cyberattack more than 20 days ago, bringing all deals in the county to an abrupt stop, The Real Deal reports. County websites, servers and databases were shut down by a hack from a group known as BlackCat on Sep. 8, The Suffolk Times reported.

The hackers reportedly claimed to have downloaded more than 4 terabytes of data, including data belonging to individual residents, and have refused to restore access to the government servers until a ransom is paid. Online databases remain inaccessible, as do county email addresses, TRD reports.

While county officials have started to accept some records in person, the hack has already caused severe disruption for brokers, lawyers, buyers, sellers and title companies. Meanwhile, banks and buyers have no way to verify if properties are free of liens or if sellers are legitimate owners.

“Real estate transactions are on hold,” Ronkonkoma-based law firm Gulotta & Gulotta founding partner Michael Gulotta told TRD. “About 45% of our business is real estate. This has impacted our staff, clients and affiliates in a major way.”

But even for records delivered in person, the inability of officials to file records electronically during this period could lead to further complications. In New York State, the first person to file title claims on a property is the person whose claim is counted, meaning that people could lose property claims if documents are filed in the wrong order.

While some deals are closing, most have been put on hold — potentially leading to contracts falling through. Mortgage rates have increased around a full percentage over the past two weeks with Freddie Mac pegging the average 30-year mortgage at 6.7% as of Thursday.

Continue reading this story with a free account

Log in or register
Sign up for more articles like this
Subscribe to Bisnow's New York Newsletters
Related Stories

Federal Government To Sell Nearly 31K SF In Five Points: The Denver Deal Sheet

Avison Young Had Assets Frozen By Bank Over Unpaid Taxes

Artificial Intelligence Companies Reshaping Dublin Office Demand As OpenAI Confirms HQ

Mars Factory Overhaul Stalls As Candymaker's Chicago Expansion Accelerates

Camden Property Trust Sells West Coast Portfolio, Clears $1.5B Target

How Long Island Projects Can Cut Through Red Tape And Community Opposition To Cross The Finish Line

Empire State Building Observation Deck Hemorrhaging Visitors, Value

Cortland, Pulte, INVH, Walker & Dunlop Execs Talk Changing Demographics, AI

America's War Machine Is Growing, Sparking A Defense Real Estate Boom

Boca Raton's New Leaders Throwing 'All Kinds Of Curveballs' At Developers

Slate, Hudson Cos. Picked To Develop Massive Queens Housing Project

BXP's 343 Madison Lands $1.2B Loan, Nears Deal With Equity Partner