INVESTORS’ SIDE ON CYBERSECURITY

A recent survey conducted by Morgan Stanley revealed that the number one worry of high net worth individuals is the rise of cyberattack in the financial industry, which surpassed concerns regarding terrorism and serious illness. Over 80% of the participants said they are finding it hard to keep their funds safe through technology, given its constant changes and advancements overtime. Another 60%, meanwhile, admitted they are likely to be a victim of scams without even realizing about it.

There are several forms of cyber crimes and they all tend to target specifically those with a remarkable net worth. Their tactics can range from spoofing email addresses or impersonating someone to urge the person to transfer cash into a certain account. According to FBI reports, around 17,000 were victimized from 2013 to last year, and their losses amount to more than $2.3M.

Given this rising issue, financial advisors are one of the key players that play a huge role in safeguarding their client’s wealth. These professionals should be able to provide solid measures to ensure customers that they are free of risks especially since cases like this could result not only to a loss of assets but also of confidence in their partners--something that could also backlash against them. At present, regulators have been monitoring advisors' systems as well, imposing penalties on companies involved in cybersecurity conflicts.

Tips on safeguarding your fortune

Verify online requests Clients should confirm first transfer requests either through a phone call or personal meet-up, since these details are easy to fake.

Multifactor authentication This enables checking unauthorized log-ins in you account through a confirmation code sent to your mobile device.

Try getting an insurance An individual may include fraud or cyber crime in their insurance coverage, but it is crucial to review the regulations beforehand. This will help offset losses in case they are victimized by these scams.

Familiarization of policies This is important for customers to have an idea of which third parties may have access to their personal information and review the weight of liability in case of a data breach.