Cyberattacks target uhnw families and the recently wealthy
According to The Wall Street Journal “a significant transfer of wealth” has commenced. It is projected that Baby Boomers and GenX will transfer more than $70 trillion in savings by 2042, with approximately 86% of this amount going to their heirs.
Furthermore, despite inflationary pressures and the residual negative economic effects of the Covid-19 pandemic, a 2021 Federal Reserve Study reveals that U.S. household wealth has reached a record high of $136.9 trillion.
According to the Global Wealth Report by the Credit Suisse Research Institute in 2022, there has been a 24% increase in the number of individuals with ultra-high net worth. The United States alone has nearly 22 million millionaires.
Unfortunately, acquiring newfound wealth exposes individuals to significant risks regarding personal cybersecurity and digital privacy.
A study by Campden Research indicates that more than 25% of ultra-high net worth families, family offices, and family businesses with an average wealth of $1.1 billion (R17.5 billion) have fallen victim to cyberattacks.
Partly, this is because cybercriminals can easily identify those who have recently come into wealth.
According to the Financial Times, cybercriminals search wealth managers’ websites and social media networks to target the wealthy, employing deceptive tactics to manipulate them into giving away hundreds of millions.
Moreover, online data brokers compile legally available lists of individuals who have recently sold small and mid-sized businesses, which can be purchased by anyone, including cybercriminals.
Editorial profiles, private information on the dark web, philanthropic activity, and political donations are additional common indicators of wealth.
A study by Accenture found that 77% of high-net-worth individuals are more worried about being hacked than they are about their investments declining in value. Fears of cyberattacks, fraud, and identity theft are even more overt for persons who have recently come into wealth.
Fortunately, newly minted high-net-worth individuals can reduce risk by taking the following actions:
Online data broker removal – Personal information is readily available on hundreds, if not thousands, of data broker websites. Cybercriminals can purchase these records, or breach these sites, to collect the information they need to launch a cyberattack. Fortunately, anyone can opt-out of any data broker with a formal request to have your information deleted.
Create a private trust – In addition to the flexibility and tax benefits, placing your assets in a private trust can add an additional layer of security and privacy over both your finances and lucrative assets. For example, revocable living trusts can be formed under a generic name, helping you protect the confidentiality of your identity, finances, and assets from those who seek to compromise them.
Prioritize email security – It cannot be stressed enough — keep your email secure. Should hackers gain unauthorized access, they can discover private accounts, engage in identity theft, and launch social engineering attacks. A Verizon report states that over 90% of cyberattacks occur via email. Aside from setting the most stringent security controls that your email client allows, make sure you are using a strong and unique password, enabling two-factor authentication (2FA), and if available, utilizing email encryption add-ons.
Don’t forget device security – Installing consumer-grade anti-virus software on all desktop and mobile is a good start, but will only protect your devices about 50% of the time. Hackers and cybercriminals are always working on getting around current software security settings, and antivirus is no exception. Look for consumer solutions that offer some of the benefits inherent to endpoint detection and response (EDR) solutions to detect and respond to malicious activity.
Install Digital Home Security – The average home now has 50 connected devices, with each of them being a vector for cyberattack. That’s why home networks are at heightened risk of brute force and man-in-middle attacks; communications eavesdropping and hijacking, DDoS and malicious code injection. To reduce risk, harden your ISP security settings and deploy network intrusion prevention technology. This will ensure the validity of online traffic flowing in and out of your home.
Protect Your Family – For the wealthy, the head of household is not the only target. Today, attackers will prioritize the path of least resistance. They will infiltrate accounts that belong to your children or spouse because they are often less protected and less cyber-aware. Attackers can then move laterally into the digital infrastructure of those with the access they seek. Even if family members do not live in the same household, you must ensure that all of the cybersecurity and privacy protections are afforded to them.
The digital landscape is fraught with danger for those who have recently come into wealth or status. You must take digital privacy and cybersecurity seriously to avoid becoming a statistic. However, it can be difficult to keep up with all the precautions needed to keep hackers and cybercriminals at bay.
Our cyber security partners combine 24/7 threat monitoring, incident response, and personalized client support – preventing, detecting, and responding to targeted cyberattacks and fraud.
To speak to one of our experts, please contact us at enqiuiries@priavosecurity.com.