Prioritising Cybersecurity in Wealth Management

Cybersecurity is a term that has been omnipresent since the internet became an essential part of everyday life. We bank online, communicate online and work online. However, this also means that a lot of crime now occurs online, which means we need protection.

Wealth management, therefore, is a sector that very much benefits from the constantly evolving and innovating cybersecurity industry. But how are our assets being protected in 2018? Here are a few trends that came to the forefront this year.

GDPR

It was impossible to miss the introduction of GDPR in May 2018, as we were all inundated with emails asking us to opt-in to mailing lists and newsletters. How exactly this particular legislation will impact security is yet to be seen, but if you would like to know a little more about how it will affect the pensions industry, click here to see an earlier blog on the subject.

Blockchain

This is another word you may have heard all over the news recently but may not actually know much about. It is defined as “a digital ledger in which transactions made in bitcoin or another cryptocurrency are recorded chronologically and publicly.” There is much debate on the subject of blockchain, most of it highly technical – the feeling, however, seems to be that, although it may be one answer to securing transactions, it may not actually be the answer. If you would like to know a little more about cryptocurrency, you can read our blog about bitcoin here.

The Cloud
Anyone with an iPhone will have heard of the Cloud – this encrypted, cloud-based storage system is definitely here to stay. The debate around it tends to be about how to make it even more secure and make sure the data held within is not vulnerable to attack. This is being worked on through the collaborative efforts of the cybersecurity community.

AI and machine learning

The general consensus of cybersecurity experts is that this is an area with potential. A recent article* on the subject states that “most are looking at using automation and machine learning algorithms in analytics or to speed through repetitive tasks, saving time and resources.” This seems to indicate that AI has more potential as a tool, rather than a solution to these attacks. It is also worth noting that bots are often responsible for cyber-attacks, perhaps further complicating their potential helpfulness.

On a national scale, the government is keen to emphasise exactly how much of a priority cybersecurity is. Digital Minister Margot James says, “We are strengthening the UK’s data protection laws to make them fit for the digital age, but these new figures show many organisations need to act now to make sure the personal data they hold is safe and secure.

The government is investing £1.9bn to protect the nation from cyber threats,” she continues, a statement that shows just how much there is at stake when it comes to keeping our data, money and privacy safe.

The wealth management sector, in particular, is being called to enact measures to make sure their clients are protected. These include:

  • Appointing a data protection officer who is responsible for making sure the new restrictions are adhered to
  • Making sure technological and organisational measures are taken to ensure data and security
  • Reporting data breaches in a timely fashion to supervisory authorities
  • Maintaining thorough and extensive records of any processing activities

If you would like to know more about our Wealth Management services, please get in touch by calling 01992 500261 or emailing us at enquiries@gpfm.co.uk.

This article is for information only and must not be considered as financial advice. We always recommend that you seek independent financial advice before making any financial decisions. Investments can go down as well as up and you may get back less than you invested.

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About gpfm

gpfm are an independent financial planning company dedicated to the provision of personal, professional and objective-driven advice for our clients. We have been awarded the Chartered Financial Planners title by the Chartered Insurance Institute for offering high quality, independent and informed advice that meets the needs of our clients.