Responding to the surge of cyberattacks on the financial sector, the CFP Board has published an article underscoring the message that financial planners can no longer reactively respond to cybersecurity incidents; they must proactively protect data.
74% of financial institutions have experienced a rise in cyberattacks since the pandemic began, creating urgency to take reasonable steps to protect the security of non-public client information.
In this article, Brian Edelman shares concern that cybersecurity is not taken seriously enough and advises firms to take necessary protective steps, some as straightforward as implementing MFA and secure Password Management.
Coincidingly important for firms is that clients have become more aware of cybersecurity practices and “Now consumers are starting to ask: What are you doing to keep my private information safe?” said Edelman.
Referencing NIST Framework, Brian recommends financial services firms take measures necessary for cybersecurity and to meet regulatory requirements:
- Appoint Chief Security Officer
- Define Information Security Policy
- Risk Assessment
Enacting safeguards protects against cyberattacks as well as provides evidence of due diligence. Should a firm experience an incident, evidence becomes of primary interest to regulators and cyber insurers.
About CFP Board
Certified Financial Planner Board of Standards, Inc. is a non-profit organization that serves the public by fostering professional standards in personal financial planning. CFP sets and enforces the requirements for CERTIFIED FINANCIAL PLANNER™ certification — to create competent and ethical financial planners who are committed to putting their clients’ best interests first.