Combatting Cyber Threats in Financial Services and Wealth Management

Management / Monday, December 25th, 2017

In this age of technology, we have various facilities to ease up our routine matters and our professional life. However, have you ever give it a thought that with the increased technology the risk has also been increased? By risk, I mean the risk to get looted with the help of technology. With everything available in the cyberspace, we become more exposed to the data breaches and cyber-attacks. According to the recent report of The Travelers Companies, Inc., the biggest risk faced by the present day wealth management companies is the risk of cyber-attack and data breach. Well, we should take it as no surprise because of the prevalent use of technology in the wealth management industry.

According to the report, about 62 percent of the companies in the financial sector are worried about the liability and compliance risk. Here the liability is towards the customers and the compliance with federal laws is the thing that makes the companies paranoid.

However, this piece is about cyber-attacks and the ways to mitigate them so we will keep our focus there. According to the report of The Travelers Companies, Inc., the most of the risk that we are experiencing is because of the extremely interconnected worlds. About 50 percent of the business show concern regarding the security breaches, identity thefts, and cyber-attacks. While on the other hand, the risk of damage computers and the overall downturn of the companies working is another loophole. With 48 percent of the companies being worried regarding the perfect working of their computers, shutting down of the overall working pose a major risk. However, this is not it, about 47 percent financial and wealth management companies show their increasing concerns regarding the illegal assistance to the company’s bank accounts and other forms of the financial control system. Almost 57 percent of the financial and banking sector reported a higher than ever felt risk in the area of cyber-attacks.

See here the problem is only having a risk is not the sole reason for these companies to concern. The lack of mitigation techniques is another big concern. We have added the information technology in our business because it is the need of the hour however, we are not fully prepared for the risks it poses to our own safety and security. Reason? Well, there is a simple reason, information technology is a new field at least for the financial and wealth management businesses and both the fields are not fully aware of all the risks. The lack of knowledge regarding the ever-changing loopholes of cyber-attacks and data breach is the biggest reason for companies showing concerns regarding the security. However, the wealth management and financial companies are exerting efforts to combat the arisen risk.

Wealth management is a risky job, you have your clients’ lifetime earnings in your hands and you seriously cannot afford to mess it up all. With complete scrutiny, highly secures passwords and regular security review you will be able to safeguard your company against such threats.