Fraser Jack
Released last week, during a webinar hosted by HUB24 for financial advisers, Founder of The Cyber Collective Fraser Jack shares his top tips on what advisers should do to help mitigate the impacts of a cyber-attack on their business and their clients. With 33 billion self-reported losses nation-wide, 67,500 cybercrime reports annually, and an average loss of $88,000 per report for medium sized businesses, up 14% from the previous year, the need for cyber security education is paramount.[1][2]
Founder of The Cyber Collective, Fraser Jack, said: “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. 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.”
The good news is that there are several steps advice practices can take to reduce to potential impact of a cyberattack to their business and help protect client information.
“While it’s important to have the right systems and IT security in place, you also need to bring your team members on the journey, ensure they are well trained in the right processes, have the technical experience and a clear understanding of what to look out for, Mr Jack said.
“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.”
Fraser Jack also reminds advice practices that having a strong cyber security plan in place not only strengthens their business but can improve client relationships.
“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.”
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