Legacy Lapse: Property Group Fails Security Audit Over Outdated Tech
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The Challenge
In February 2025, Havenstone Realty Group, one of Canada’s largest property management conglomerates, faced a serious compliance issue during an annual security audit. The assessment uncovered multiple critical vulnerabilities within legacy IT systems that still supported leasing operations across dozens of its residential complexes. The audit team found that the company’s central data servers were running outdated software no longer supported by the vendor. Tenant records, including contact details, bank account information, and lease agreements, were stored on these systems without proper encryption or modern access controls.
The internal audit further revealed that over 20 percent of user accounts had not been reviewed in more than two years, and many retained administrator privileges long after employees had left the organization. Routine patch management had fallen behind due to compatibility issues with older software, creating exploitable weaknesses across the network. To make matters worse, several regional offices continued to use outdated payment tracking applications that transmitted data without end to end encryption.
These findings presented not just a technical risk but a governance one. Under Canada’s Personal Information Protection and Electronic Documents Act (PIPEDA), Havenstone’s practices could be classified as negligent handling of personal information. Regulators warned that further noncompliance could result in financial penalties and reputational harm. The company’s executive board immediately froze expansion plans and ordered an urgent modernization strategy before the next audit cycle.
Our Solution
We were engaged to stabilize operations, contain risk exposure, and restore compliance confidence. The first step was a full inventory of every system handling personal and financial data. Each platform was classified by risk level, operational dependency, and regulatory exposure. Short term compensating controls were deployed immediately. This included implementing encryption overlays, enforcing password resets, and restricting administrative access across all networks.
Next, we worked with Havenstone’s IT and governance teams to design a phased retirement plan for unsupported technology. A modernization roadmap was developed, prioritizing high risk systems for immediate replacement while ensuring minimal business disruption. Cloud migration plans were reviewed against data residency requirements to ensure compliance with federal privacy law.
To strengthen oversight, a dedicated Technology Governance Committee was established under the audit board to track progress and align new investments with privacy and cybersecurity standards. Staff training sessions were introduced to promote accountability and awareness around secure data handling.
By the conclusion of the engagement, Havenstone successfully transitioned its tenant management systems to a secure, encrypted cloud environment. Follow up penetration testing confirmed no remaining critical vulnerabilities. The company passed its re audit with full compliance, restoring both regulator and tenant trust.
The Value
Havenstone’s modernization effort reinforced its reputation as a responsible property operator. The board gained better visibility into its risk posture, and the firm’s new governance model became a benchmark for other real estate organizations managing large tenant data portfolios.
Implementation Roadmap
1. Conduct enterprise wide inventory of all legacy systems.
2. Deploy encryption, password, and access control enhancements.
3. Develop a phased modernization roadmap tied to audit timelines.
4. Establish governance reporting and oversight through the board.
5. Train staff and leadership on new privacy and cybersecurity controls.
