SMSFs not immune to cyber attacks

Even before the regulators move to deal with the cyber attacks on major Australian Prudential Regulation Authority (APRA) regulated funds, the SMSF Association has warned trustees to remain alert and proactive.

SMSF Association chief executive, Peter Burgess said that no part of the superannuation sector is a immune from cyber threats – including SMSFs.

“We are not aware of SMSFs being targeted in these most recent attacks, but given the fragmented nature of our sector, it can be difficult to identify isolated incidents,” he said.  “What we do know is that the cyber risks faced by SMSFs are different in nature to those which manifested themselves in these recent attacks.

“Unlike a sector-wide attack that targets the balances of many members simultaneously, an attack on SMSFs would require targeting individual bank accounts which typically represents the retirement savings of one or two members.

“Every SMSF is required to have their own bank account which means trustees can benefit from the security protocols of both the banks and their SMSF software providers and administrators.”

“Whilst these layered protections are reassuring, they are not infallible. Cyber criminals continue to evolve their tactics, and no industry is immune from a cyber-attack – and that includes SMSFs.”

“To protect retirement savings, SMSF trustees must also take personal responsibility for cyber hygiene and remain vigilant.”