Daily Management Review

Experts: Cybercriminals step up attacks on wealthy investors


Cybercriminals have begun to target family offices that manage the wealth of wealthy investors more frequently. They have weaker defences than banks, making them easier targets for criminals.

Digitalisation and the pandemic have increased the activity of cyber-fraudsters trying to defraud family offices, the organisations that help wealthy investors manage their wealth and assets. This was reported by the Financial Times, which spoke to representatives of several major companies.

Oliver Gregson, managing director of private banking at JPMorgan in London, singled out three main types of fraud: phishing, when scammers extract payment details to steal money; payment fraud, when criminals defraud banks; and spoofing, when attackers disguise themselves as money recipients. JP Morgan also noted ransomware, which blocks access to a computer or file system and demands payment.

In 2020, 26% of the 200 participants in a survey by wealth management company Boston Private experienced cyberattacks. One reason is that they are a convenient victim for fraudsters because family offices don't have the same resources as banks and large companies for cybersecurity, experts polled by the FT said.

To guard against scammers, JP Morgan advises customers to install the latest software updates, make regular backups and have a backup plan in place. During the pandemic, the bank called for private and business networks to be separated and for communications to be encrypted through VPNs. The managing director of Tiedemann Advisors advised to double-check everything, to activate SMS confirmation (two-factor authentication) and to personally confirm transactions with the other party.

source: ft.com