In an era when cyber attacks on major corporations seem to be a normal part of the news, the battle of cyber security is raging on stronger than ever. Of course, this isn’t just a fun little game that nerdy hackers are playing in their basements for giggles – it’s all about the money. Sadly, more than 60% of companies that are hit by a strong cyber attack will go out of business within just six months of being hacked. Needless to say, a company’s private financial and account data being leaked is not a good thing, especially if it results in widespread fraud against the company, its associates, and its clients. With that said, here are three reasons why cyber security should be one of the highest priorities for any investment firm.
1. Assuming Responsibility for Client Funds
As the owner or manager of an investment firm, you have to be comfortable knowing that you’re dealing with high-profile clients and large sums of money. So, it goes without saying that you’re handling the funds of people who are already very wealthy and have high expectations. Some of your clients may also be very influential and might have a decent amount of pull in the media or in the financial sector, and the reach of the investors you’re dealing with could span the entire globe. For example, one of your investors might be a Silicon Valley tech mogul while another could be the prestigious Chairman of Ahli United Bank, Fahad Al-Rajaan.
2. Assessing the Consequences of Stolen Data
When an investment firm has been hacked, it essentially means that a hacker has gained access to the network on which the company’s important information is stored. That could mean that the hackers have access to usernames, passwords, and other personal account information such as credit card numbers, bank account info, addresses, phone numbers, and anything else within the firm’s database. Once all that data has been leaked, it’s as if “the cat has been let out of the bag,” but it’s not going back in.
3. Security is the Name of the Game
When a bank or any other financial institution transports funds they typically do so in an armoured vehicle. So it makes sense to treat digital funds and accounts with the same type of cyber protection. Those account digits represent the same cash money that corporations spend billions to store in state-of-the-art vaults, so the same kind of expenditure and effort should go towards ensuring digital security and confidentiality of the accounts that those funds are attached to. Without adequate security, the entire system could fall victim to cyber attacks and there would be no such thing as banking confidentiality or account safety.
4. No Recourse against Hackers
The chances of physically locating the hacker and destroying the data they stole before it can be uploaded and backed up on the web are slim. In fact, experts estimate that less than one percent of hackers actually get caught and prosecuted for their cyber crimes. So it really is crucial to make sure your system is never compromised if you want to maintain long-term security and confidentiality with investors.