Family offices, managing substantial wealth with limited staff and resources, are increasingly vulnerable to cyberattacks, according to a Dentons survey. The survey reveals that 79% of North American family offices believe the likelihood of a cyberattack has surged in recent years, with 25% reporting attacks in 2023, up from 17% in 2020. These offices, often possessing sensitive financial data, have become lucrative targets for hackers due to their substantial assets and relatively small teams.
Edward Marshall, global head of family office and high net worth at Dentons, notes that family offices prioritize efficiency over risk management, lacking adequate technology and preparation for potential cyber threats. While in-house security teams can be costly, outsourcing to third-party vendors introduces additional risks. Despite growing awareness of cybersecurity risks, less than a third of family offices have well-developed cyber risk management processes, with only 29% deeming their staff and cyber-training programs sufficient.
The Dentons survey underscores the urgent need for family offices to bolster their cybersecurity defenses. Recommendations include addressing hardware, software, and application vulnerabilities, utilizing secure platforms for communication, and implementing robust staff training programs. With cyber threats evolving rapidly, family offices must adopt a proactive approach to cybersecurity, expecting the unexpected and prioritizing comprehensive risk assessments to safeguard their assets and sensitive data.
