Sadly, fraud attempts are becoming much more frequent in our client conversations, and the classic—but rather obvious—example of the ‘Nigerian Prince’ needing money is long outdated. Scammers have become far more sophisticated in their tactics. Part of this is due to everyone being increasingly more comfortable interacting online, especially in the wake of the Covid pandemic. Indeed, the FBI reports a 300% increase in cyberattacks since 2020. Rarely do we exchange cash anymore, and instead use Venmo or other similar transaction. This convenience of the digital age is wonderful, but at what cost? And how do we combat the bad guys? First, we need to know the fight we are up against, and here are some of the most prevalent fraudulent activities in our industry.
Identity Theft – It’s not just a 2013 comedy featuring the lovable duo of Melissa McCarthy and Jason Bateman. This is very much a constant real-life risk. Moreover, the potential exploitation of stolen personal information for financial benefit gets further facilitated by the vast amount of data available online. Think about it… how many different websites or apps hold your credit card information on file? It’s just easier—and often necessary—but it does carry some risk. Additionally, ransomware and cyber attacks are particularly worrisome for business owners and could be crippling. One malicious software can take down an entire company. Plus, the speed at which these attacks can be accomplished is rising, with “breakout times” (the time it takes for a criminal to move within your network after the first breach) dropping significantly in recent years.
Some problems go to the heart of being human, such as phishing. Social engineering is the tactic of manipulating, influencing, or deceiving a victim to gain control over a computer system, or to steal personal and financial information. There are many types of phishing attempts, and all prey on the fact that humans are imperfect. We are preprogrammed with strong traits such as trust and fear, both of which can be used against us. In fact, 85% of all data breaches involve human interaction.
Despite the doom and gloom, there is a bright side to all of this. Just as scammers are getting smarter, so are the cybersecurity strategies that we employ to prevent them. Companies have also doubled down on employee education since it is the first line of defense. Artificial Intelligence (AI) is reshaping nearly every industry these days, and cybersecurity is no exception. A recent research report estimated the global market for AI-based cybersecurity products was about $15 billion in 2021 and will surge to roughly $135 billion by 2030. Unlike humans, AI can analyze vast amounts of incident-related data extremely quickly and efficiently which leads to much better defensive action. And yet, one of the best ways to successfully thwart these types of threats is to rely upon our common sense. There is never harm in being suspicious. If it seems too good to be true, it likely is. As mentioned earlier in the article, there is a plethora of personal data out there to make life easier, but it can also be used to manipulate you into believing a scam.
At Sand Hill, security is always a top priority. We have put certain policies and procedures in place to help keep our clients and their assets protected from fraudulent activity, and we can offer support and assistance if trouble arises personally for a particular client. Some of these practices include regular two-factor authentication, money transfer lockdowns, security text alerts, and voice biometrics. We also require periodic training for all personnel on how to identify fraud, and we have strict standards for handling any private financial information. Additionally, our online Sand Hill client center acts as a single, encrypted, point of access to store and exchange important documents and sensitive information with our clients. Furthermore, the custodians that we engage for holding client assets employ the most sophisticated technologies and best practices available to make sure our clients’ information and accounts are well protected online as well as in person. All these measures combined with the depth of understanding and knowing our clients help to mitigate threats and keep assets safe and secure.
Source: www.trutechnical.com, www.cmu.edu, www.acumenresearchandconsulting.com
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