Protecting your clients and business from cyber threats

With 62% of Australian businesses having experienced a cyber incident, the risks are real, but how can financial advisers better protect their clients and business?¹ In our recent webinar we spoke with Fraser Jack, founder of The Cyber Collective, and Sonya Choi La Rosa, General Manager Technology and Operations at Diverger, to find out why it’s essential for financial advice practices to get on the front foot to protect their clients and business from cyber threats.

Safeguarding your clients’ diamonds

Financial advisers hold a lot of confidential data about their clients that would be valuable for someone to steal and sell online – such as financial plans, identification documents and superannuation details. In the wrong hands, this data could easily be used to commit identity fraud or other cybercrimes. Fraser referred to this valuable client data as ‘diamonds’.

“Advice is a relationship business,” he said. “Clients trust you with their personal information and you need to make sure you protect and look after it. If a client’s information ends up online, in many cases that will be enough to break the relationship. My research indicates that 64% of clients would leave their professional service provider if their data was exposed. From an adviser’s point of view, it’s confronting to think about losing up to two thirds of your client base and the income that goes along with that. Not to mention the reputational damage on top of it.”

Fraser pointed out that while it’s imperative to make sure your systems work and you have IT security products in place, many cyber risks or gaps involve human error.

“It might be a lack of cybersecurity culture within the business, or not enough people knowing and understanding how to recognise threats. Yes, you need technical expertise in place, but you also need vigilant frontline staff and clients who understand the risks and know what to look out for.”

Opportunity to deepen client relationships

Having a strong cybersecurity plan in place not only strengthens your business, but it can also improve your client relationships.

“There’s a huge opportunity for advisers to have proactive conversations with their clients about their cybersecurity processes,” Fraser said. “The feedback we’ve heard from clients when their advisers have taken this approach is appreciation for addressing their concerns and looking after their data.”

Sonya added that it’s important to bring the whole team on the journey to make sure everyone is clear on what’s being done and how you’re communicating with clients.

“Give your team an opportunity to bring up things they may not understand or processes they want clarity on. Provide constant cybersecurity education to your team to keep it front of mind so that they can continue to engage with clients on the topic. Your team and business benefit and your clients are being offered something of value that gives them peace of mind.”

Watch our webinar to find out more

Watch our HUBinsights webinar to hear Fraser and Sonya share their valuable tips about how to protect your clients and business from cyber threats.

Watch now

¹ Australian Cyber Security Centre Small Business Survey 2020