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 No one at Fort Pitt Capital in Pittsburgh has fallen for such
schemes. But the firm, like many others, is beefing up cyber
security education for employees. It is also boosting client
outreach in the face of rampant identify theft, which the Federal
Bureau of Investigation notes is the fastest growing crime in the
United States, and cyber attacks, which exceed 100,000 per day.
Fort Pitt held its first cyber security seminar for clients last
week, tapping expertise from True North Networks, a New
Hampshire-based technology consulting firm it hired to provide
network surveillance, employee training and client communication
assistance. The seminar offered tips such as using a two-step
process to log in to email, developing strong passwords, and evading
email phishing attempts.
After a large turnout of more than 50 clients, Fort Pitt expects to
hold more events, and is considering developing a webinar, said Todd
Douds, Fort Pitt's director of research and operations.
The need to educate clients about cyber security threats is
"morphing the job," Douds said. "Our role is to be trusted advisers,
and that's historically been around financial planning. But now it's
also about helping them protect their financial assets from criminal
activity."
Mitigating cyber threats fits in well with financial advisers'
mandates, said Karl Schimmeck, managing director of financial
services operations at the Securities Industry and Financial Markets
Association (SIFMA).
What is more, hacking incidents can land firms in hot water for
running afoul of privacy rules and laws. One broker, for example,
was recently barred after following a fraudster's transfer
instructions.
"The more people think about cyber security, the better it is for
everyone," Schimmeck said.
SIFMA holds its own cyber security webinars, including one for small
firms on Aug. 12, and also works with The Financial Services –
Information Sharing and Analysis Center (FS-ISAC), a forum for
sharing information about cyber security threats.
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Some larger firms have devoted specialized in-house resources to the
problem. About a year ago, Raymond James Financial Inc set up a
team, Threat Intelligence Analysis, to analyze breaches and hacks,
and shape the firm's response and communications for employees,
advisers, and clients, said Andy Zolper, chief information security
officer at Raymond James.
For example, the team taps into FS-ISAC, monitors events, and
prepares Frequently Asked Questions (FAQs) for advisers when a
notable breach occurs, Zolper said.
"Five years ago, the client question would have been, 'Is my
information safe?'" Zolper said. "Now they're looking for more
detail, and we're definitely providing it."
Advisers' mindsets have also changed. "I don't think the majority of
advisers felt as though cyber security was their problem," Zolper
added. "Now they definitely get that."
(Reporting by Hilary Russ; Editing by Suzanne Barlyn and Richard
Chang)
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