Wealth Accounts at Increasing Risk of Scams and Cyber Takeovers

The prevalence of scams is a global problem. Cybercriminals hide behind international borders, making it difficult for law enforcement to assert jurisdiction. Scams are hard for financial institutions to detect because scam victims are usually complicit, albeit unwittingly. Today’s scams are often backed by well-orchestrated organized crime rings, which also have nation-state ties and geopolitical motivations. 

Wealth management firms must deal with this reality, as their clients are often affected by the most devastating and nefarious types of scams—scams that are long-running and result in the perpetual draining of investment accounts linked to retirement, inheritance, and trust accounts. Financial advisors, though not the prey, are increasingly finding themselves in precarious situations. What more can they do to help victimized clients? 

Key questions discussed in this report:

• Why are scams so underreported among consumers and the wealth management sector? 
• How does cybersecurity support and cyber risk mitigation build trust between advisors and investors? 
• What role does identity verification play in scam mitigation?