Today’s largest wealth management firms are constantly under threat. Cyber-criminals are working around the clock to hack into RIAs, IBDs and enterprises to access the large amounts of financial and personal data they manage.
By taking a proactive approach to compliance and cybersecurity, your firm will not only be better protected against cyberattacks and breaches, but also well-prepared for SEC or FINRA reviews. With data encryption, event monitoring and field audit history, Practifi Protect provides an additional layer of security to elevate your firm’s approach to cybersecurity.
If you would like to learn more, get in touch with your CSM or contact a member of our team today.
Cyberattacks are on the rise
As gatekeepers to the personal data of some of the country’s highest net-worth individuals, large wealth management firms are an attractive target for cyberattacks. It was not long ago that Capital One suffered a major data breach with hackers gaining access to over 100 million client records. And while high-profile companies like this make the news, cyber-criminals do not discriminate. According to the FBI, in 2018 cybercrime victims lost around US$2.7 billion across a range of industries. But a data breach can cause companies and victims to lose more than just money; companies can lose their reputation, sense of security and most notably, their customers’ loyalty and trust.
Due to the heightened risk, it poses to investors, cybersecurity ranks among the SEC’s top examination priorities for financial advisers. To mitigate these threats, the SEC requires RIAs and IBDs to ‘create a comprehensive strategy that is designed to prevent, detect and respond to cybersecurity threats'. If firms fail to implement such measures, they can be fined and their reputations may suffer. For example, in 2017 the SEC fined Voya Financial Advisers US$1million due to a data breach that compromised their customer's personal information and the news circulated quickly within the industry.
In addition to standard compliance obligations, FINRA expects firms to have a cybersecurity program that involves tactical measures such as permission controls, data encryption, event monitoring, data backups and a response plan. With comprehensive protection, the nation’s large wealth management firms can strengthen compliance, improve governance and increase transparency across departments, branches and networks as they continue to scale.
Elevate cybersecurity with Practifi Protect
While developing a cybersecurity plan is no walk in the park, it is a crucial step in taking a proactive approach to compliance. By setting up the right protection measures, you will be better prepared for cyberattacks, breaches and audits. Practifi Protect helps by providing an additional layer of security to guard client data, improve oversight and help your firm proactively prepare for an audit.
As a wealth management firm, you are responsible for taking care of your clients. They are not only trusting you with their financial futures, but they’re also trusting you with their personal data. With Practifi Protect, you will get the additional layer of security you need to protect your clients and elevate your cybersecurity plan.
