By Allison Lasley, Practifi
Today’s largest wealth management firms are constantly under threat. Cyber criminals are working around the clock to hack into RIAs, IBDs and MFOs 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, but also well-prepared for SEC and FINRA reviews. With enterprise-grade encryption, usage monitoring and field audit history tracking, Practifi Protect provides an additional layer of security to guard you from the unexpected.
As a subscription add-on, Practifi Protect is available to new and existing Practifi users. If you’d 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 wasn’t 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 don’t discriminate. According to the FBI, in 2018 cybercrime victims lost around $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 advisors. 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 Advisors $1M due to a data breach that compromised their customers personal information and the news circulated quickly within the industry.“There are two kinds of financial services firms: those that have faced a cyberattack and those that will.”
Top Financial Services Issue, 2018
In addition to standard compliance obligations, FINRA expects firms to have a cybersecurity program that involves tactical measures such as permission controls, data encryption, usage 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’s a crucial step in taking a proactive approach to compliance. By setting up the right protection measures, you’ll be better secured against cyberattacks and better prepared for when the SEC or FINRA comes knocking. Practifi Protect defends your firm by providing enterprise-grade encryption, usage monitoring and field audit histories; making it that much easier to improve governance, strengthen compliance and increase transparency.
As a wealth management firm, you’re responsible for taking care of your clients. They’re not only trusting you with their financial futures, but they’re also trusting you with their personal data. With Practifi Protect, you’ll get the additional layer of security you need to protect your clients and elevate your cybersecurity plan.
Interested in learning more?
Practifi Protect is available to new and existing Practifi clients. If you’d like to learn more, get in touch with your CSM or contact us today.