About half of global Ultra-High-Net-Worth family wealth is being managed through Family Offices. It is therefore no surprise then that this sector is receiving increasing attention from opportunistic attackers who are able to exploit both the financial and reputational equity attached to these businesses. With approximately a third of all family offices already being victims of cyber-attacks, there can no longer be any complacency when it comes to information security and data-protection.
Understanding The Risks
Globally, the estimated annual cost of cyber-attacks runs into the trillions of dollars. Some large companies, banks and other financial institutions have created entire divisions within their business structure to combat this threat. It is critical for all businesses, including Family Offices, to understand the types of risk that are associated with cyber-crime:
- Financial Risk: This is the most obvious and most clearly understood risk. If cyber criminals are able to access your accounts, they have access to your money and are able to steal large sums before any flags are raised. Even without direct access to your accounts, they can still pose a significant financial threat if they are able to access personal or sensitive information and therefore able to conduct identity theft or extortion. Extortion is a particularly significant threat within the family office space due to the reputational sensitivity associated with very wealthy families.
- Operational Risk: Cyber-crime can cause serious disruptions to normal business operations.