Is your financial adviser protecting your data?

By Greg Wright

MBA, CFE, CFP®, CLU, ChFC

Certified Fraud Examiner

Certified Financial Planner™

Small financial planning and investment advisory firms are cyberattack targets.  Many have been a data breach victim and do not know it.  Some know that they have been a victim and did not report it as required by law.  They did not tell you either. 

All of your financial and personal data – investments, tax returns, loved ones, business interests – may already be in the hands of a cyber-thief.  You may not find out until your assets have been compromised. 

Ask your financial planner, insurance agent and investment advisor a few basic questions;

• How often do they conduct a cybersecurity audit?
• Who conducts that audit?
• The name of their cybersecurity third-party consultant.
• Request a copy of the most recent audit.
• Request a copy of their data breach response plan.
• Where is your data stored?  Is the data stored in the U.S.?
•  Is it encrypted?
• The name of the software

Be prepared for a request for time to respond.  You may need a plan “B”