The threat of cyber security attacks is on the rise, prompting HUB24 and myprosperity to launch a digital education resource aimed at helping financial advisers tackle cyber risks, especially for small businesses.
The collaboration between HUB24, myprosperity, and other industry experts has resulted in the creation of CyberHUB, a platform that offers interactive content such as insights, tips, and case studies to educate financial advisers on cyber security and the available solutions to mitigate risks.
In the fiscal year 2023–24, the Australian Cyber Security Centre received over 36,700 calls to its Cyber Security Hotline, indicating a 12% increase from the previous year. The average cost of cyber crime for small businesses reached $49,600, marking an 8% increase, while medium businesses faced an average cost of $62,800.
HUB24 emphasized that the exposure to cyber security threats has become a growing concern for licensees and financial advisers due to the significant volume of sensitive client data needed to develop financial plans. The reliance on email for exchanging sensitive information between clients and advisers has made advice practices a prime target for cyber criminals.
Despite the risks, a survey by Finura Group as of December 31, 2024, revealed that around 69% of advisers still send key documents like statements of advice via email.
Greg Hansen, HUB24’s executive for group strategy, highlighted email as a major vulnerability for advice practices, as it lacks crucial security protections available through customer portals. Hansen noted that advisers have become more vocal about their cyber security concerns and are actively seeking ways to protect themselves and their clients.
Tracy Williams, the general manager of myprosperity, mentioned that advisers have accepted the inevitability of cyber incidents and are taking steps to enhance their cyber security measures. Williams emphasized the benefits of client portals in improving service offerings and strengthening value propositions, particularly at a time when trust, security, and service are paramount for clients in the advice industry.
Overall, the launch of CyberHUB and the increased awareness among advisers about cyber security risks signal a positive shift towards bolstering protection against cyber threats in the financial advisory sector. The collaboration between industry players and the proactive steps taken by advisers to enhance their cyber security measures reflect a commitment to safeguarding sensitive client information and providing a secure environment for financial transactions.