As the finance world increasingly becomes digital, wealth management firms have had to introduce cybersecurity measures to protect the data they collect daily from their clients. For a lot of these companies, securing the client onboarding process was their first exposure to cybersecurity in general.
A data breach in the financial sector can be especially devastating since it not only leads to monetary loss but also constitutes an often irreparable loss of confidence with the clients. For that reason, Mako has put in place stringent cybersecurity measures within its platform, but wealth management firms still have a role to play to remain protected.
This article will provide context about cybersecurity in the wealth management sector, tips to remain protected and explain the Mako Fintech cybersecurity process.
The financial sector has always been a prime target for cybercriminals because of its direct link to bank accounts and sensitive personal information. However, data breaches are only one of the cyber threats faced by the financial sector.
Since wealth management offices rely on access to their data to run their operations, cybercriminals often launch ransomware attacks against these types of businesses. As the name implies, this type of attack locks down a system and asks the company for a ransom to unlock the data.
These statistics highlight the dire need for robust cybersecurity measures for all wealth management firms, no matter their size.
While wealth management offices definitely should invest in security measures like firewalls, cyber criminals rarely attempt to breach systems in that manner. The most common way data breaches and ransomware occur is via human error.
Attacks like phishing and social engineering attempt to trick employees of a company into providing login information or access to data via fraudulent emails or other communication channels. For that reason, it’s important to properly equip your staff to fight off these threats by building a cybersecurity culture within your organization.
Here are some ways to achieve this goal:
This type of training must be done frequently, and ideally, the content should be tailored to your company’s specific needs. There is a plethora of affordable software solutions on the market, but it’s a good idea to also have in-person training to allow your staff to ask questions in a safe environment.
These initiatives must be used carefully and sparingly because they can end up making employees who fail them feel singled out. However, sending these fake phishing emails is essential to gain relevant context and identify the type of training you should deliver to your staff.
As wealth management firms introduce more and more technological tools within their workflows, it is essential to conduct cybersecurity audits on the vendors and partners. While most modern software companies build their products with security in mind, you’ll want to make sure they meet the stringent requirements of the financial industry.
Mako’s product has been carefully built and maintained so that all wealth management firms can use it without any worry for the safety of their data.
Digital onboarding can be extremely convenient and scalable, but it’s also a moment in the customer journey where the most personal information transits via the Web. For that reason, Mako has instituted a number of cybersecurity measures to ensure personal information never leaks out.
This voluntary cybersecurity certification delivered by the American Institute of Certified Public Accountants (AICPA) demonstrates that recipients store and process client data in a secure manner.
It is considered the leading certification for data security worldwide and is often required by financial institutions to approve the usage of a product. Mako is proud to have attained this status and remains committed to honouring it.
Mako offers a variety of authentication methods and supports SSO via SAML 2.0. Additionally, our product has a robust user permissions system that allows you to limit the accessible files depending on the authority level of an employee.
This feature creates a more secure operating environment and ensures disgruntled employees or ex-employees can’t cause data breaches.
Our product relies on strong encryption technology deployed in the following manner:
Strong cybersecurity protocols in the finance sector are a careful balancing act between choosing the right partners and enacting the importance of cybersecurity within your organizational culture.
Digital onboarding offers convenience and scalability but must be done right to ensure data security. With a partner like Mako, you’ll be able to rest easy at all times.
If you’d like a more detailed demo of our features, don’t hesitate to reach out here.
Image by Fakhruddin Memon from Pixabay
