Advisers not prepared for cyber attacks, survey reveals
The Kamino Cyber Security survey conducted in October 2017 has revealed that the entire financial services industry, including financial advisers, accountants and superannuation funds, were not adequately prepared when it came to cyber security.
Only 46 per cent of respondents said they would be adequately prepared to deal with a cyber-attack on their business, with 25 per cent admitting their business was not doing enough to protect its systems from cyber threats and the remaining 29 per cent unsure.
Managing director of Kamino, Julian Plummer, said the results were concerning as 45 per cent of the respondents had experienced at least one cyber security attack. The survey also revealed only 32 per cent of respondents were aware of the new data breach notification laws that came into effect February this year.
“These laws will have a huge impact on the businesses affected,” said Plummer. “This lack of awareness of the laws most likely translates to an overall lack of preparedness for the changes now in effect, which is worrying considering the ramifications of a cyber breach incident on a financial planning or accounting practice.”
Some other key findings from the survey were:
- There was over-confidence when it came to dealing with cyber threats;
- The most common cyber incidents were caused by malware or phishing emails, which indicated that there was a lack of basic security hygiene in the industry; and
- Some critical controls that could help prevent cyber incidents are missing across the board.
Recommended for you
While the Financial Services and Credit Panel can take action on individual advisers’ misconduct, a compliance professional unpacks why the panel does not always subject licensees to further action.
Platform HUB24 has reported $100 billion funds under administration in its latest quarterly results, helped by a 90 per cent rise in platform net inflows.
Progressing digital advice and seeking breakeven in the advice division are part of AMP’s goals for the upcoming financial year as it approaches 1,000 financial advisers in its licensee.
The Rask Group, in partnership with InvestSMART’s new investment platform, has announced three ETF strategies, aimed at empowering financial advisers to create and manage their own ETF portfolios.
