bankingciooutlook

The Top 5 Cybersecurity Risk Factors for Wealth Management Companies

Banking CIO Outlook | Friday, February 25, 2022

Protecting your company's information has never been more challenging. The assistance of a reliable technology partner is an essential component of any successful cybersecurity strategy.

Fremont, CA: When it comes to data security, privacy, and compliance, wealth management and other financial services firms face a unique set of challenges. Because of the variety of personal and financial information captured and stored, this type of service provider is a prime target for cybercriminals. On the dark web, detailed personal data that includes a complete financial picture of a high net worth individual can be worth thousands of dollars.

Data & Email Security

Sharing personal information via email is never recommended, but financial services organizations must take extra precautions to protect their clients' information. Unfortunately, email breaches are becoming more common in this industry, with financial services experiencing the second-highest cost of data breaches — right after healthcare.

Third-Party Vendor Risk

Working with a third-party vendor introduces a number of risks to your organization, including the chance that you will not receive exactly what you expected, the risk that market changes will render the changes obsolete — and now, the dramatically increased risk that a breach will impact your business to your vendor's systems.

Employee Education and Awareness

There are three primary root causes of data breaches:

• Malicious or criminal attacks account for 48% of breaches.

• System glitches account for 25%.

• Human error accounts for the remaining 27%.

This could include anything from using weak passwords to allowing individuals to keep access to information they no longer required for business purposes.

Breach of SaaS/Public Cloud

Cybercriminals are constantly looking for ways to infiltrate organizations with access to a large amount of customer data. Software-as-a-Service and other cloud-based providers are a broad target because they are linked to so many other businesses that hackers can minimize the risk by infiltrating just one.

Lack of 2FA/MFA, Poor Password Hygiene

Regardless of how strong your cybersecurity is, it's a safe bet that nearly any password or service can be compromised. As a result, a simple username and password combination is no longer sufficient to protect your organization. To prevent password compromise, two-factor or multi-factor authentication is required. Biometric and other information are used in multi-factor authentication to confirm the individual's identity.

 

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