ARTICLE
12 February 2016

U.S. Regulators Say Hackers Targeting Wealth Advisers

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Kramer Levin Naftalis & Frankel LLP

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FINRA identified cybersecurity as a technology management issue under the priority area of supervision, risk management and controls.
United States Finance and Banking

FINRA identified cybersecurity as a technology management issue under the priority area of supervision, risk management and controls. The SEC also listed cybersecurity as a top priority in its Examination Priorities for 2016 notice, because at least 74% of advisers have been a target of a cyber-attack, it says. A current issue related to cybersecurity in the financial advising industry is wire fraud, said Michael Kitces, a certified financial planner and director of financial planning for Pinnacle Advisory Group. Cyber-thieves are contacting advisers, pretending to be clients on vacation, claiming they've been robbed, and requesting a wire transfer immediately, he said. Fraudsters are hacking into clients' personal emails and looking through their "sent" files to gain financial information, and contacting the advisers with phony requests.

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