Planners and accountants ‘at risk’ of forgetting cyber risks
Cybersecurity concerns are behind a long list of issues for financial advisers and accountants and system vulnerability is prevalent, according to technology provider Midwinter Financial Services.
Midwinter is set to launch a cyber protection service, Kamino, which will include vulnerability assessments, penetration testing, and ongoing monitoring for systems used by advisers and accountants.
Midwinter managing director, Julian Plummer said the need to regularly monitor the resilience of these systems was crucial.
“Hackers have turned their attention to smaller to medium business (SMBs) because the larger companies now have the money and systems in place to protect themselves,” he said.
“Advisers and accountants are prime targets because of the sensitivity of their client data.”
Plummer said Kamino would function as a cyber “health check” and help small and medium sized (SMEs) advice and accounting firms to protect their systems from potential threats.
“A security breach can destroy a business overnight so it is imperative that the appropriate precautions are taken when it comes to information security,” he said.
“Advisers and accountants spend a great deal of time ensuring they are compliant with ASIC’s [Australian Securities and Investments Commission’s] regulatory guides, meet their obligations under the Corporations Act as well as trying to stay out of the cross hairs of the ATO (Australian Taxation Office), so it’s easy to forget about potential issues closer to home.”
AUTHOR
Hope William-Smith
Recommended for you
The new financial year has got off to a strong start in adviser gains, helped by new entrants, after heavy losses sustained in June.
Michael McCorry, chief investment officer at BlackRock Australia, has detailed how investors are reconsidering their 60/40 portfolios as macro uncertainty highlight the benefits of liquid alternatives.
Having reset its market focus to high-net-worth advisers, Praemium’s administration solution has been selected by Bell Potter in a deal that increases the platform's funds under administration by $6 billion.
High transition rates from financial advisers have helped Netwealth’s funds under administration rise by $3.7 billion in the fourth quarter of FY25.
