Cyber threats continue to evolve at pace, and financial services remains an attractive target for cyber criminals due to the sensitive information and financial assets entrusted to the sector.
Over recent months, we have observed an increase in cyber security incidents affecting financial adviser firms. While the methods used vary, many attacks continue to exploit familiar weaknesses, including phishing, social engineering, compromised credentials and attempts to circumvent authentication controls. Increasingly, criminals are also leveraging artificial intelligence (AI) to make these attacks more convincing, enabling them to create highly credible emails, messages and other content designed to deceive individuals into disclosing information or granting access.
For adviser firms, the consequences of a cyber incident can extend beyond the immediate disruption caused by an attack. Compromised accounts may provide unauthorised access to confidential client information and increase exposure to fraud and other financial crimes. Taking appropriate steps to protect systems, accounts and data is therefore an important part of maintaining client confidence and supporting the secure operation of your business.
Whilst no security measure can eliminate risk entirely, there are a number of practical steps your firm can take to strengthen your cyber resilience:
1. Use Multi-Factor Authentication (MFA) everywhere possible
Passwords alone are no longer sufficient protection. MFA provides an additional layer of security and significantly reduces the likelihood of unauthorised access, even where credentials have been compromised.
2. Strengthen password management
Use unique, complex passwords for all business systems and online services. Consider using a reputable password manager to generate and securely store credentials. Passwords should never be shared between colleagues or reused across multiple services.
3. Remain vigilant to phishing and social engineering
Many cyber-attacks rely on persuading individuals to take actions they would not normally take, such as clicking a malicious link, sharing credentials, or disclosing sensitive information. AI is making these attacks increasingly convincing by enabling criminals to create professional, personalised, and legitimate-looking communications. Staying alert to unusual requests, unexpected attachments and suspicious links can help reduce the risk of a successful attack.
4. Take a moment to verify
Cyber criminals often rely on urgency and pressure to encourage quick decisions. If a request relates to a payment, changes to account details, confidential information, or access to systems, it is worth taking a moment to confirm it is genuine before proceeding. A quick verification through a trusted channel can often prevent fraud, data loss, or other costly mistakes.
5. Keep systems and devices updated
Ensure operating systems, applications, browsers, and security software are kept up to date. Applying security updates promptly reduces exposure to known vulnerabilities that are actively targeted by threat actors.
6. Review user access regularly
Employees should be granted only the access required for their role. Periodic reviews of user accounts and permissions help reduce unnecessary exposure and limit the potential impact of compromised credentials.
7. Maintain reliable backups
Regularly backing up critical business information and testing recovery processes can help reduce disruption in the event of ransomware, data loss, or other cyber incidents.
8. Ensure staff awareness training is current
Technology alone cannot prevent every attack. Regular cyber awareness training helps employees recognise and respond appropriately to common threats. Training programmes should increasingly cover AI-enabled threats, including sophisticated phishing attempts, impersonation techniques, and other forms of digital deception.
Simple steps, meaningful impact
As cyber threats continue to evolve, simple security measures such as MFA, strong password management, and a healthy degree of scepticism towards unexpected communications can make a significant difference. By maintaining good security practices, you can reduce your exposure to cyber threats and better protect your clients, your information, and your business.