A consistent rise in the number of cybersecurity breaches taking place in the investment industry has many financial advisors asking if they are doing all they can to keep their firms safe from risk.
To better deal with these threats, many advisors are re-assessing their internal systems and procedures to make sure they are up to snuff. Changes being made include the setting up of new verifications codes for business functions such as money requests, the initiating of newer, safer passwords, and the implementation of a ban on placing client data on laptops. Many financial advisors are also putting in place cybersecurity audits to help ensure that their company information, as well as their clients’ information is well protected from criminals lurking online. (For related reading, see: 6 Ways to Protect Yourself From Cybercrime.)
One firm that has already taken such steps is Heron Financial Group. The firm is also working toward better securing its customer relationship management systems. Heron along with many other financial advisors is taking the added step of purchasing cybersecurity insurance. This type of insurance is now regularly being sold to advisors from firms that also sell errors and omissions policies.