HomeSecurity ArchitectureCyber security is a fundamental professional requirement for advisers

Cyber security is a fundamental professional requirement for advisers

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In a recent Praemium webinar, the head of IT security, Indika Wimalasiri, emphasized the rapidly evolving and changing landscape of cyber security. As technology becomes more sophisticated, it is crucial for advice firms to ensure that they have robust processes in place to enhance their cyber protection strategy.

The latest data from the Australian Cyber Security Centre revealed that one in four cyber crimes reported by businesses in FY2023–24 were related to online banking fraud or business email compromise (BEC) fraud, resulting in financial losses. The report highlighted that BEC fraud continues to significantly impact businesses, with an average financial loss exceeding $55,000 for each confirmed incident.

Wimalasiri stressed that all businesses, especially those in the financial services sector, hold a responsibility to their clients to implement adequate measures to safeguard themselves, their clients, and the highly sensitive information they handle. He emphasized that professionals in the finance industry are not just managing money but are also safeguarding people’s financial futures, making cyber safety a fundamental professional requirement rather than an option.

“The industry we are in makes us a prime target for cyber criminals. As we work with sensitive information, it is critical to remember our responsibilities because this information represents individuals and humans behind it,” Wimalasiri stated. “We have a big responsibility as a community and as an industry.”

With the prevalence of cyber crimes on the rise, Wimalasiri advised that even small businesses should not underestimate the threat of cyber attacks. Despite their size, businesses can still be vulnerable targets for cyber criminals and must remain vigilant against potential threats.

“It’s important to remember that cyber criminals don’t discriminate. They are just after easy targets, money, and personal information. They often exploit one target to infiltrate others, creating a chain reaction,” Wimalasiri cautioned. “Cyber criminals target us not only to gain access to our information but also to compromise our customers and other individuals associated with us.”

Using a case study to illustrate the impact of cyber crimes, Wimalasiri shared an incident where a scammer sent a sophisticated phishing email impersonating a client’s adviser, resulting in a substantial financial loss and damage to trust between the client and adviser. He emphasized the importance of strict verification protocols, encrypted communication channels, and regular communication with clients about emerging scam techniques to prevent such incidents.

“Better security involves implementing multiple measures to create a protective barrier. No single solution can prevent financial crime,” Wimalasiri emphasized. “It is a combination of various strategies that work together to safeguard ourselves, our customers, and their associated information.”

Furthermore, as artificial intelligence (AI) advances in the financial services industry, Wimalasiri cautioned that cyber criminals are leveraging these technological advancements for illicit purposes. While AI offers numerous benefits for businesses, cyber criminals are also using AI tools to facilitate their criminal activities.

“We use AI to enhance our business operations, but cyber criminals use it to commit crimes. The evolution of AI presents a new digital frontier with uncertainties about its impact on the industry and community,” Wimalasiri warned.

In conclusion, it is imperative for businesses, especially in the financial services sector, to prioritize cyber security measures and stay vigilant against evolving cyber threats to protect themselves, their clients, and sensitive information from falling into the hands of cyber criminals.

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