Real estate licensees should safeguard a client's or customer's personal information in order to prevent:

Safeguarding a client's or customer's personal information is essential in preventing identity theft. Identity theft occurs when someone unlawfully obtains and uses another individual's personal data—such as Social Security numbers, credit card information, or bank account details—often for fraudulent purposes. Real estate licensees have a fiduciary duty to protect such sensitive information given the trust clients place in them.

By implementing strict confidentiality measures, real estate professionals not only comply with legal requirements but also cultivate trust and protect their clients from becoming victims of identity fraud. This protection is particularly crucial in real estate transactions, where large sums of money and significant personal data are involved.

While misrepresentation, double escrows, and wire fraud also represent concerns in real estate practices, the immediate and direct threat of identity theft stems from exposure of personal information.