Cyber Security for Financial Advisors?

Financial Advisors are a tempting target for data thieves as they have a treasure trove of sensitive information and financial transactions.

Did you know: According to a Cyber Security expert, most practices could be hacked within 30 minutes (source)

“When we talk about policies and procedures across Australia, 93 per cent don’t have an appropriate cybersecurity policy”.

If you’re a Financial Planner or Financial Advisor, are you doing enough for your cyber security, to keep your clients safe?

What responsibility do you have to ensure your clients’ information is protected?

Let’s look at how you can increase your cyber security and keep your business protected.

In Financial Planning, What Requirements Do You Need to Adhere to?

As a business in Australia, any Financial Planner, or Financial Adviser that stores client data will be required to take steps to protect your system and data from cyber threats.

Regulations include:

1) The Privacy Act 1988: This legislation regulates how organizations handle personal information, including sensitive information such as financial and health data. Organizations must comply with the Privacy Act when collecting, using, and disclosing personal information.

2) The Notifiable Data Breaches scheme: This scheme requires organizations to notify individuals whose personal information is involved in a data breach that is likely to result in serious harm. Organizations must also notify the Office of the Australian Information Commissioner and take steps to contain and reduce the risk of harm.

3) The Security of Critical Infrastructure Act 2018 where a business must alert the Australian Cyber Security Centre of a data breach within 12 hours of becoming aware.

This means you have a minimum level of cyber security measures you need to implement and if a data breach does occur, it must be reported in a timely manner.

Security measures to protect your business can include:

• Firewalls
• Anti-virus software
• Encrypting data
• Employee training to identify and prevent cyber threats

Has your business implemented any of these measures? If not, Government regulations could be the least of your worries after a data breach; you could be in for a PR disaster.

How do I get Started with Cyber Security for a Financial Planner?

If you’re not familiar with cyber security and/or any of the security measures we have mentioned above, this could all feel a little overwhelming.

A great option is to speak with an IT support company that offer cyber security solutions.

They will be aware of the regulations and your obligations under Federal and State laws, as well as what are the most secure options to keep your financial planning business and client data secure.

 

Your clients have trusted you with their highly sensitive information.

It's important for financial planners to have a robust cybersecurity plan in place to protect their data and prevent cyber-attacks.

Since the Notifiable Data Breaches Scheme was implemented in 2018, reported breaches have continued to grow and 2022 taught us that any company in Australia, whether large or small, needs to implement strong security measures to protect their data.

Have a question about Cyber Security? Get in touch.

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