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Protecting Your Business and Clients: A Guide to Online Security Measures for IFAs

If a prospect asked you to describe your online security measures, would you have the response that would help land the sale?

Selling insurance products means understanding the idea of mitigating risk.  This extends to the need for electronic security—It is critical that you protect yourself and your client information.  The cost of failure here is potentially financial and reputational loss. 

As an advisor, it’s crucial to grasp the nature of online threats and how to defend against them. The two most common threats are phishing and malware attacks. Phishing typically involves deceptive emails from untrustworthy sources, aiming to trick recipients into sharing sensitive information or establishing digital connections. While these attempts may seem unsophisticated, their effectiveness lies in their numbers. Phishing may not fool many people, but there is always a chance that someone may simply click the wrong link and share vital information.

More insidious are attacks targeting C-level executives and business owners, who often possess access to sensitive financial information. These efforts are more sophisticated and often attempt to falsely replicate the identity of a bank or insurance firm.  The quick way to check here is to look at the origin’s email address.  If it looks fishy, it almost certainly is. As the amount of money you manage increases, so does the size of the target on your back.

Malware operates slightly differently but poses similar risks. The results can range from minor inconveniences like browser redirects to severe consequences like account takeovers. While firewall and antivirus software can handle most malware threats, vigilance against unexpected emails and texts is paramount. Be careful what software and media you download: you may be unwittingly allowing malware in by the back door.

Establishing processes that promote online security awareness are fundamental.  Ideally you will develop your own security culture—even if you operate completely independently.  Data breaches result mostly from error via outbound email.  You and your employees must remain vigilant to protect your business, funds, or private client information, so ideally you will use a process that double-checks electronic transfers.

Steps to ensure your online security:

  • Implement two-factor authentication for account sign-ins, ensuring an added layer of security through codes sent to you or your clients to ensure authentication.
  • Use encrypted email communications to prevent interception of sensitive information.
  • Invest in firewall and antivirus software to protect your network from unauthorized access.
  • Employ strong passwords for all logins, including your Wi-Fi network, and consider WPA3 encryption for enhanced security.

Communicate with your clients about cybersecurity and the measures you have taken. While these security practices may come with associated costs in terms of time and money, they demonstrate professionalism and show that your business is a safe haven for their investments. In this way, cybersecurity becomes an essential component of your marketing communication. 

So when a potential client asks the online security question, you will have the comprehensive answer and an even better chance of a signature.