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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