Ultra-high-net-worth individuals (UHNWIs) often prefer to keep a low profile. Yet in today’s digital era, discretion alone no longer suffices. Cybercriminals now target family offices—the specialised entities managing the wealth and affairs of the world’s wealthiest families.
These offices combine significant financial assets with highly confidential personal information. According to Cybersecurity Ventures, the global cost of cybercrime could soar to US$10.5 trillion by 2025. For family offices that oversee multigenerational fortunes, strengthening digital defenses is as crucial as traditional asset allocation.
Ransomware attacks, phishing schemes, and supply-chain attacks are growing more sophisticated, seizing on vulnerabilities in personal devices, informal communication methods, and third-party vendors. According to a Deloitte survey, nearly 60 percent of European family offices experienced at least one attempted cyberattack over the course of a year. Though smaller than large financial institutions, they are often seen by criminals as “soft targets,” lacking the rigorous cybersecurity protocols demanded of banks or heavily regulated entities.
“Family offices hold the keys to multigenerational legacies, which makes them magnets for sophisticated cyber threats,” says Ian Keates, CEO at Altoo AG, a Swiss-based wealth-tech firm. For years, high-net-worth families gravitated toward Switzerland’s stable regulatory environment and reputation for financial discretion. Yet even the Swiss Federal Act on Data Protection (FADP) and other stringent data-secrecy laws have not deterred attackers looking to compromise email accounts, unsecured networks, or the personal devices of traveling staff.
Why family offices are prime targets
The risks are difficult to ignore. IBM’s Cost of a Data Breach Report recently noted that the average financial-services breach reached US$5.85 million in 2024, not counting the potential fallout from reputation damage, which can account for a significant portion of the total loss. Over 79 percent of global organisations still lack mature risk assessment processes, according to PwC. That shortcoming leaves many family offices ill-prepared for increasingly targeted schemes, especially at a time when remote work exposes additional vulnerabilities. PwC’s Global Insights highlights that as much as 70 percent of breaches stem from insecure remote access, underscoring the urgency of instituting virtual private networks and encrypted communication channels.
Still, those willing to invest in robust cybersecurity can significantly reduce their exposure. Proactive risk assessments – benchmarking against standards like ISO 27001 or NIST’s Cybersecurity Framework – help pinpoint weaknesses in personal devices, vendor contracts, and data-sharing protocols.
Deploying defence in depth
Substantial measures are being taken by the more prepared family offices. Deloitte’s research points to a “defence in depth” strategy – using multiple layers of protection such as encryption, intrusion detection systems, and endpoint security – to reduce the likelihood of catastrophic breaches. Zero Trust Architecture, a “never trust, always verify” model endorsed by McKinsey, can halve the risk of a successful attack by insisting on continuous verification of every user and device.
Increasingly, family offices also seek more secure communication tools. Providers like ProtonMail, headquartered in Switzerland, have seen a 200 percent jump in client sign-ups from wealth managers keen to shield sensitive data from prying eyes. VPNs are another must, particularly with remote staff or travelling family members, as unprotected networks can open a back door to highly confidential records.
Altoo Wealth Platform: security highlights
“At Altoo, we take a privacy-by-design approach to safeguarding client wealth. Our platform encrypts data end-to-end, enforces rigorous authentication, and stores no personal information in the cloud. This holistic security model ensures that family offices not only gain clarity on their assets but also peace of mind in an era of escalating cyber threats.” Ian Keates, CEO at Altoo
Beyond technology: policies, insurance and the human factor
While technology helps, good governance and vigilant staff are equally critical. The Ponemon Institute’s studies reveal that organisations with detailed incident-response plans detect and contain breaches 40 percent faster, underscoring the value of crisis simulations and clear communication protocols. In practice, this means designating who must be alerted in the event of a breach – whether it is legal counsel, family members, or external advisors – and ensuring no time is lost to confusion. Meanwhile, persistent training is essential to mitigate human error, which McKinsey estimates is responsible for roughly 40 percent of security lapses. Regular phishing tests, cybersecurity drills, and ongoing education can significantly lower the success rate of social-engineering scams.
Insurance is also becoming a critical piece of the puzzle. PwC’s latest Cyber Insurance Market Review cites a 25 percent year-on-year growth in cyber policy uptake among private banking and family office clients. But, as Ian Keates from Altoo AG warns, “Insurance alone cannot save your reputation. It is critical to pair coverage with proactive measures.” Scrutinising sub-limits for ransomware or social engineering within these policies is essential – especially for organisations that rely on external vendors, where vulnerabilities can be passed down the supply chain.
In the end, technology offers only part of the solution. A cohesive plan that marries cutting-edge security tools with policy frameworks, thorough training, third-party oversight, and a robust incident-response strategy puts family offices on stronger footing. The stakes are high: by 2030, some US$2 trillion in family wealth is estimated to transfer across generations, according to the Boston Consulting Group. The success of that transfer hinges not only on wise investments, but also on protecting assets from new and evolving digital threats. For families intent on preserving their legacies, cybersecurity must be as integral to their operation as estate planning.
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