Advice for advisers on cyber security

Yasmine Raso

Senior Journalist, Financial Newswire

25 November 2022

In a turn of events, financial advisers were the ones to receive some advice today on how to better protect their business and clients from potential cyber attacks during a webinar hosted by HUB24.

Fraser Jack, founder of the Cyber Collective, addressed advisers on cyber security measures after it was found there had been 33 billion self-reported losses across the country, 67,500 reports of cybercrime and an average financial loss of $88,000 for medium-sized businesses – a 14 per cent increase from last year.

“Most advice firms are small to medium businesses and the data that they hold on file is incredibly rich data and very personal to their clients,” Jack said.

“If someone was to get a hold of this information and make it available online, it would have a high impact on the advice business and their clients.

“The Cyber Collective recently undertook some research with professional services practices and found that 64% of clients would leave their trusted service provider if their data was exposed.

“So, from a financial adviser’s point of view, it’s confronting to think you could lose up to two thirds of your client base and the income that goes with it. Not to mention the reputational damage to your brand.”

Jack also urged advisers to not only have the IT systems and security strategies in place but to also ensure team members are well-trained in the necessary processes and have a clear understanding of the technical protocols.

“Protecting your business and your client’s information involves championing the right culture among your people, to ensure they are proactive and vigilant in their daily practices.”

“There’s a huge opportunity for advisers to have proactive conversations with their clients about their cyber security processes,” Mr Jack said.

“The feedback we’ve had from advisers who have taken this approach is that their clients appreciate new initiatives and processes that address cybersecurity and assist in looking after their data.”