Your reserve account is segregated. Your board is personally liable.
Florida moved condo reserve funds into dedicated, non-waivable accounts. Wire fraud found them. NexaThreat explains the risk in plain English for community association management firms across Miami-Dade, Broward, and Palm Beach.
SB 4-D and HB 913
What changed, and why it matters now.
SB 4-D and HB 913 require every residential condo three stories or higher to complete a Structural Integrity Reserve Study and fund it. Owners can no longer vote to waive reserves for structural components. That money must be held in a separate account, not commingled. Boards that fail to maintain it face personal liability.
That means a newly funded, legally segregated pot of money sitting in a dedicated account, with named individuals personally on the hook for it. It is exactly the kind of target attackers look for, and almost nobody is talking to management firms about the cyber side of it.
What actually goes wrong
The four risks that actually hit management firms.
Reserve fund exposure
Segregated SIRS accounts, mandatory funding, no waiver, and personal board liability. A single fraudulent wire against a reserve account is a legal problem, not just a financial one.
Wire and ACH fraud
Assessments, vendor invoices, and capital project payments move by wire every week. The FBI logged $3.05 billion in business email compromise losses in 2025, and 86% of those losses moved by wire or ACH.
Owner and tenant data
Applications, background checks, bank details, and estoppel files are personal data. Florida's breach notification law applies, and most firms have no plan for the day it happens.
Vendor and contractor access
Roofers, engineers, reserve specialists, and maintenance crews all touch your systems and your properties. Every one of them is a path in.
Sourced, not rounded
The numbers.
$3.05B
Business email compromise losses, 2025
Source: FBI IC3 2025 Annual Report
$275M
Real estate fraud losses, 2025, up 32% year over year
Source: FBI IC3 2025 Annual Report
$150K–$200K
Average loss per real estate BEC incident
Source: Industry reporting
86%
Of BEC losses that move by wire or ACH
Source: FBI IC3 2025 Annual Report
Your software
Your platform is an attack surface.
AppFolio, Buildium, Yardi, TOPS, whatever you run. The logins get phished, and a compromised manager account sees every association in your portfolio. NexaThreat tracks the threats that target community association platforms and explains what to do about them without the jargon.
The 30-Minute Consultation
Start with a 30-minute consultation built for association managers.
A short, focused conversation covering reserve account controls, wire verification process, owner data handling, and vendor access. You leave with a clear read on your biggest gap and one practical next step. If you need hands-on help closing it, we'll point you to a trusted MSP.
Book Your ConsultationWho's behind this
Why NexaThreat.
NexaThreat is a plain-English cyber intelligence resource founded by Ken Jackson, who has spent over a decade in cybersecurity and has real estate experience of his own. We translate threats into clear next steps for the people responsible for risk who don't have a security team behind them.
Frequently asked questions
Does the SIRS reserve requirement create new cyber risk?
Yes. SB 4-D and HB 913 require condos three stories and up to fund a Structural Integrity Reserve Study and hold that money in a separate, non-commingled account that owners cannot vote to waive. A newly funded, segregated account is a higher-value target, and board members carry personal liability for its stewardship.
How does wire fraud hit community association management firms?
Attackers compromise or spoof email and send altered payment instructions for assessments, vendor invoices, or capital projects. The FBI reported $3.05 billion in business email compromise losses in 2025, with 86% moving by wire or ACH.
What does the 30-minute consultation cover?
Reserve account controls, wire verification process, owner and tenant data handling, and vendor access. You leave with a clear read on your biggest gap and one practical next step.
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