Cybercrime attacks on high net worth individuals have been on the rise, enabled by the increasing sophistication of cybertheives.
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Ever-patient hackers can now lurk undetected in individuals’ systems and accounts for weeks or even months waiting to strike.
When they do, the repercussions can be significant.
The good news is that family offices are ideally positioned to guide clients toward holistic digital protection practices. Armed with a proactive approach to cybersecurity, firms can help high net worth families protect their wealth, privacy and legacy for future generations.
Further down, I’ll outline a step-by-step guide to help family offices protect their principals’ vulnerable data. But first let’s look at what family offices and those they serve are up against.
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Vulnerable records, malicious links
Most high net worth individuals have virtual gold mines of data stored online: troves of identity records, financial accounts and health records that would command top dollar on the darknet. Attackers exploit personal email, social media, poorly secured home networks and unprotected devices. From easily guessed or reused passwords to unsecured gaming consoles, smart televisions, cameras and more, vulnerabilities abound.
I’ve worked with several families whose financial accounts were breached and their personal lives turned upside down because cybercriminals gained access to their devices and emails.
One client received a targeted phishing email disguised as an urgent technical support alert that tricked her into clicking on a malicious link. This gave scammers remote access to her computer, which they rendered inoperable.
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In another case, cyberthieves monitored a high net worth individual, who was not yet a client, for weeks or perhaps months (cybercriminals can reportedly lurk undetected in an individual’s personal accounts for as long as three to five months).
During that time, the hackers learned of the family’s upcoming travel plans — specifically, when they would be on a plane and unlikely to have access to multifactor authentication alerts or other clues that an attack was underway. As a result, their accounts were breached.
Remote access scams like the ones described above can be prevented by adopting a “zero-trust” mindset and deploying technical safeguards, such as endpoint detection and response (EDR), to automatically block malicious software execution.
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Family offices on defense
Given the FBI’s estimated $16.6 billion lost to internet-enabled crimes in 2024 alone, family offices seeking to protect their high net worth clients must adopt a multilayered approach that covers every possible point of entry for highly motivated and resourceful threat actors.
Here is a six-point blueprint that advisors can follow.
Assess clients’ digital landscape. Take inventory of all devices, accounts, Wi-Fi networks and social media platforms used in the household. Then evaluate each family member’s online habits and awareness of cybersecurity risks.
Reduce public exposure by minimizing digital footprints. Families should remove unnecessary personal information from the internet, opt out of data-broker sites and avoid oversharing on social media. Remove private images of homes from sites like Zillow and blur properties on Google Maps. Limit location tracking on devices and apps, as it can reveal sensitive patterns about routines and whereabouts.
Install multifactor authentication. Multifactor authentication, or MFA, should be set up on all personal accounts and devices, including email and all financial, social and health care accounts, using a secure password manager. Never reuse passwords. Install anti-malware on all devices and keep operating systems updated, ideally through automatic updates. Using the zero-trust framework, avoid suspicious links or downloads.
Secure home networks and connected devices. Families should set up separate guest networks and regularly update and patch smart devices including cameras, appliances and home automation systems.
Advise families to exercise extreme caution when traveling. While on the move, avoid public Wi-Fi in favor of virtual private networks (VPNs) and never scan a QR code to connect to Wi-Fi. Turning off location-sharing adds an extra layer of security.
Conduct ongoing education. Coach family members on privacy settings, phishing awareness and safe social media practices. Using code words to verify urgent requests, checking sender addresses and avoiding unknown friend requests can prevent costly mistakes.
Family offices should proactively champion and implement cybersecurity best practices across every facet of the principal’s life to ensure that the convenience of the connected world does not come at the cost of the family’s security, privacy and peace of mind.
