Is Your Financial Advisor Safeguarding Your Assets

Media Division | May 3, 2017

The financial industry is no stranger to being barraged by cyber threats.  In fact, financial services institutions have typically been in the top 3 most frequent targets for cyber attackers.  Banks, lenders, and various other financial organizations hold very important and valuable information that can be a treasure trove for attackers, plus there is also the potential for them to target the funds directly.  There are a multitude of parties and firms that can be involved in the storing and management of a person’s money. One person that is involved in a wide range of operations with these funds is a financial advisor.  Being that an advisor has a hand in various movements of a person’s money, it is critical that they have comprehensive cyber security in place.

Financial Advisors Are Unprepared for Cyber Attacks

There are an extremely large amount of cyber security threats that are targeted toward financial institutions.  While there is very little data in relation to the statistics of cyber attacks on financial advisors, they are quite obviously at risk simply due to the assets that they deal in. And in reality, a large majority of financial advisors are simply unprepared for the potential threats that lurk the web. In fact, according to research sponsored by TD Ameritrade Institutional, 8 out of 10 advisors consider cyber security to be a high priority, and yet only 29% said that they agree that they are fully ready to manage and mitigate cyber security associated risks.

Advisors have the responsibility of protecting the extremely sensitive information and funds that their clients trust them with.  Cyber security is a necessity for any organization or business within our modern age of technology and wide use of cyberspace.  Neglecting the implementation of truly comprehensive cyber security is simply lackadaisical and unacceptable.  Just as banks have vaults and safes for physical funds and information, as must advisors, banks, and other financial institutions have proper protection and defense of digital information.

The Value of Cyber Security Insurance

With the way that cyber threats and attackers are able to cause such a wide range of damage in our modern age, it becomes necessary to have solutions in place to appropriately mitigate risks.  Hence, why the industry of cyber incident insurance has continued to grow at a rapid pace.  This adds an additional layer of protection on a contingency basis.  In the event of a cyber attack, a financial advisor could easily hold heavy liability.  They may not be able to fully cover the cost of a loss, which is why it is ideal to have insurance there to help cover it.  It is a way to pass over some of the potential risks to another entity.  Many financial advisors are beginning to obtain cyber security insurance policies to help mitigate the risk that they hold.

The Use of a Cyber Threat Assessment

Cyber security threats can have a wide range of vectors that they attack from. And each industry has a variety of threats that can be of particular danger to them.  This is where a cyber threat assessment can be of great value to a financial organization.  A cyber threat assessment can relay information in regard to the entire landscape of potential actors.  Using directed intelligence, it can discover the standing scene in regard to a specific industry, organization, type of information etc.  It allows an organization to obtain a quick overview of the potential threats that are currently extant.  Massive Alliance offers comprehensive cyber threat assessments to allow an organization to maintain awareness of the threat landscape.

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