This week, Eefje Chalmers, a family business advisor with Deloitte Netherlands, considers the potential impacts of using technology on families and their organisations.

The internet is one of the greatest inventions. Few other things have so radically shaped culture, media, commerce, entertainment and communication. But as with many things, these benefits can have a downside, especially where family, wealth and business collide.

Cybersecurity & your family

Everybody has friends and family members that are active on the internet, and younger generations especially have a habit of sharing information online on social media. Although all internet users run the risk of being targeted, wealthy families and their companies tend to be more appealing targets.

When talking with families about cybersecurity, I have found there tends to be three main areas of concern:

  1. Reputational risk The online presence of a family member and the sharing of personal information with virtual strangers can harm a family's reputation, and in extreme cases could make a family vulnerable to extortion. Online posts also have the potential to damage the reputation of a family's business, especially if the individual involved shares a surname with the company.
  2. Theft There is always a chance that adversaries will be able to access bank/financial accounts, and 'phishing' attacks are a particular threat, especially if the individual in question has a recognisable online presence and frequently shares personal information. Another often-overlooked aspect of online privacy is physical theft. 'Location-tagging' posts on social media (i.e. including geographical information in a post) can make it easy to determine where a family lives, if they are at home or on holiday, and where they are staying during their holiday – leaving them potentially exposed.
  3. Privacy While younger generations seem to embrace online sharing, older family members may have different feelings about what is appropriate to be shared. There may be a desire for privacy amongst older generations which runs against the openness of the social media era.

What is more, for family businesses, the spheres of 'work life' and 'private life' often overlap, and this is also reflected in one's online habits. Family businesses can be particularly exposed to cybersecurity threats if work is done at the family home, or if private email addresses are used for sending business related information (and vice versa). Equally, IT security may not be as stringent in a family's home office as within the family business' corporate office. Every business possesses certain confidential commercial information which may be of great strategic and monetary value. The more exclusive the knowledge is, the higher the commercial value attached to it. Families should consider what their most business-critical information is, and whether it is being endangered by their working practices.

Questions to ask yourself

  •   What is the online presence of you and your family members?
  • Do you know what others can find out about you and your family online?
  • Are you and/or your family members easy to recognise in public?
  • Is your location traceable?
  • Is your home network accurately secured?
  • Are you and your family using unique passwords?
  • Are you using the right email address for sharing business-related information?
  • Is your financial and private information safely stored?

As technology evolves, it is so important for families themselves and their organisations to keep themselves aware of the relevant risks and the possible impacts of its use. It is only once these have been identified and understood that the right actions can be taken to protect both the family and the enterprise from the dangers of the digital age. 

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.