Fight against cybercrime: urgent for family offices

In the digital age we live in, just opening an internet browser can expose us to security risks. For family offices, which manage large estates, this vulnerability can be even more insidious. According to Boston Private, 26% of these offices have suffered a cyberattack, and for nearly two-thirds of them, the event has occurred within the past 12 months. As digitization of day-to-day operations becomes more of a necessity, family offices should pay particular attention to the security of their digital environment.

Identification of the main cybersecurity risks

The most common cyber threats family offices face are not that different from those facing the rest of the world. However, what is at stake for them is often much more significant. Muralidhran Nadarajah, CIO of Eton Solutions, points out that family offices must pay close attention to several key cyber risks, including phishing and ransomware attacks, data breaches, insider threats and third-party risks, which can cause serious financial and of reputation.

The emergence of new threats and the importance of vigilance

The emergence of generative AI has introduced new potential threats, as hackers are now able to create sophisticated deepfakes and conduct phishing/vishing attacks using voice, video, email and social media data. The need for enhanced vigilance is paramount in this new era of threats, especially given that many of these sophisticated attacks are orchestrated by state actors. Family offices need to be particularly careful in this respect, due to the high level of wealth they manage.

Risk of losses beyond the financial aspect

In addition to the financial damage, there are other types of losses that family offices can suffer. Tobias Jaeger, founder and CEO of Falcone International, says modern cyberattacks almost always have a real-world component. In the case of family offices, attackers can obtain or compile detailed information that could improve the quality of their phishing or social engineering attack. Often, family offices are run by small groups with great power and don't necessarily follow the same decision-making routes and operating rules as an investment firm with similar assets under management, making them easier targets for attack.