Cybercrime is a booming business with devastating consequences. Nearly one in three Americans has been the victim of online financial fraud or cybercrime, according to a 2023 Ipsos survey, with nearly $12.5 billion in losses reported to the FBI’s Internet Crime Complaint Center (IC3) last year alone.
While no one is immune to cybercrime in today’s digital age, high-net-worth individuals and families are especially susceptible to online attacks, as hackers see them as lucrative targets. To protect your assets, read on for some common cyber threats and risk prevention strategies.
Common cyberattacks
Cybercrime might start or finish online, but it rarely takes place completely in cyberspace. Many cybercrimes involve obtaining sensitive information such as multifactor authentication (MFA) codes or user passwords that are used to access the victim’s account or accounts. In these cases, the cybercriminals don’t directly breach security systems; rather, they exploit other people’s natural trustworthiness by posing as a trusted individual, such as a bank employee.
Common cybercrime techniques include:
• Phishing
• Ransomware
• Data breaches
• Deepfakes
For more information about common fraud approaches, talk to your financial advisor.
How to protect yourself—and your family—from cybercrime
As cybersecurity threats continue to evolve, it’s crucial to take proactive steps to protect your safety, privacy and financial legacy. Follow these tips.
Make a plan
Scammers rely on emotional tension and the pressure to act now. You can counter this by having a preestablished plan to address issues that arise. For example, a plan could include a family password or secret question that must be provided accurately before any money is wired or transferred.
Set ground rules for social media
Social media is a huge vulnerability, so be careful about what information you post online as well as what can be seen in the background of photos. You and your family members should use strict privacy settings and require approval of new followers.
Enable multifactor authentication
Enabling MFA requires both a password and a second form of verification (often a one-time code) each time you log on. But be cautious of code requests you didn't initiate.
Let’s curb cybercrime
Ultimately, cybercrime prevention and preparedness are critical to helping curb cybercrime, as is understanding the many ways you and your family may be a target. Take time to keep apprised of news and information on cybercrime and consult your financial advisor whenever you have questions or concerns regarding financial fraud.
Contact your financial advisor today for more resources about cybercrime mitigation.