By: Lori Eason, CFP(R)
This day in age, technology is a major part of all of our lives. But with the convenience of unlimited data at our fingertips comes an increasing number of opportunities for thieves. If you haven't personally been the victim of online fraud, you probably know someone who has. In our line of work, security is of utmost importance. After all, we manage people's life savings. In a recent survey among financial advisors, 25% said they had received what appeared to be a fraudulent request for funds in the last 12 months, and we can be included in that number (we saw through the fraudulent email). Although we have always been extremely cautious and have many security measures in place, we stay up to date on new risks and look for opportunities to further protect our clients. Just as technology evolves, so do criminals.
As a firm, we combat these evolving threats by investing in a wide array of security devices and software to protect our servers and network. In addition to this electronic security, our equipment is kept behind locked doors and we have strict user policies to prevent security breaches from occurring as the result of unsafe online activity. Our electronic systems are secured in much the same way as most other corporate networks. While no system is impenetrable, servers by nature are pretty safe and are not the problem with most electronic break-ins. The greater risk is individual computers.
In my role here as a financial planner at Alder Financial Group, I am constantly corresponding with clients via email. Sometimes this includes emailing sensitive attachments including account forms, statements and quarterly reports. While I don't worry about the security on my end due to all the layers of protection we have in place here, if one of our client's personal email accounts was hacked, there is a chance that personal information could end up in a thief's hands. We recently started using a secure, electronic filing service called ShareFile. This is one step we are taking to strengthen our security and reduce the risk that one of our clients becomes a victim of fraud. Instead of emailing account sensitive attachments, we plan to upload such documents to ShareFile. Our clients can then securely login and download the documents, and store them there if they so wish.
While we are taking steps to increase our security, there are things you can do as well. First off, it is very important to routinely clean out your email inbox. If you have received emails and attachments with personal information, download and save the ones you need to keep on your computer and then delete the email. Keep in mind that just because you clicked delete does not mean that you have permanently deleted the email. It may be stored in a "trash" or "deleted" folder. You'll need to routinely clean up and delete your sent emails as well. It's also important to be careful when using public Wi-Fi hotspots. It's safest to not transfer personal information over such networks as they may not be legitimate connections. A scammer can easily sit in their car outside a Starbucks and broadcast a fake Wi-Fi network from a laptop.
In a recent article in Financial Planning magazine, I read a scary example that could have ended very badly for a financial advisor and her client. The advisor knew her client was looking for a new house to buy. But she was a little surprised when she received an email from the client asking her to wire money directly to the seller for a closing scheduled for the next day. At first the advisor was annoyed about the short notice. It turns out a thief had hacked the client's email account and read enough emails to learn about what was going on in her life. While the advisor was getting the funds together for the closing, she decided to call the client as things were just moving too fast. Sure enough, the client wasn't closing for several weeks and hadn't sent that email to the advisor.
The internet is a great resource and makes all of us far more productive. You shouldn't let the threat of online fraud prevent your from using this valuable resource. Many people mistakenly think that the biggest risk with corresponding electronically is in the transmission of information over the internet, but in reality, the larger threat is what happens to the information once it reaches its final destination. With a few simple steps of keeping your inbox clean, you can greatly reduce the chance of someone getting their hands on data that could be used to commit crime.
This day in age, technology is a major part of all of our lives. But with the convenience of unlimited data at our fingertips comes an increasing number of opportunities for thieves. If you haven't personally been the victim of online fraud, you probably know someone who has. In our line of work, security is of utmost importance. After all, we manage people's life savings. In a recent survey among financial advisors, 25% said they had received what appeared to be a fraudulent request for funds in the last 12 months, and we can be included in that number (we saw through the fraudulent email). Although we have always been extremely cautious and have many security measures in place, we stay up to date on new risks and look for opportunities to further protect our clients. Just as technology evolves, so do criminals.
As a firm, we combat these evolving threats by investing in a wide array of security devices and software to protect our servers and network. In addition to this electronic security, our equipment is kept behind locked doors and we have strict user policies to prevent security breaches from occurring as the result of unsafe online activity. Our electronic systems are secured in much the same way as most other corporate networks. While no system is impenetrable, servers by nature are pretty safe and are not the problem with most electronic break-ins. The greater risk is individual computers.
In my role here as a financial planner at Alder Financial Group, I am constantly corresponding with clients via email. Sometimes this includes emailing sensitive attachments including account forms, statements and quarterly reports. While I don't worry about the security on my end due to all the layers of protection we have in place here, if one of our client's personal email accounts was hacked, there is a chance that personal information could end up in a thief's hands. We recently started using a secure, electronic filing service called ShareFile. This is one step we are taking to strengthen our security and reduce the risk that one of our clients becomes a victim of fraud. Instead of emailing account sensitive attachments, we plan to upload such documents to ShareFile. Our clients can then securely login and download the documents, and store them there if they so wish.
While we are taking steps to increase our security, there are things you can do as well. First off, it is very important to routinely clean out your email inbox. If you have received emails and attachments with personal information, download and save the ones you need to keep on your computer and then delete the email. Keep in mind that just because you clicked delete does not mean that you have permanently deleted the email. It may be stored in a "trash" or "deleted" folder. You'll need to routinely clean up and delete your sent emails as well. It's also important to be careful when using public Wi-Fi hotspots. It's safest to not transfer personal information over such networks as they may not be legitimate connections. A scammer can easily sit in their car outside a Starbucks and broadcast a fake Wi-Fi network from a laptop.
In a recent article in Financial Planning magazine, I read a scary example that could have ended very badly for a financial advisor and her client. The advisor knew her client was looking for a new house to buy. But she was a little surprised when she received an email from the client asking her to wire money directly to the seller for a closing scheduled for the next day. At first the advisor was annoyed about the short notice. It turns out a thief had hacked the client's email account and read enough emails to learn about what was going on in her life. While the advisor was getting the funds together for the closing, she decided to call the client as things were just moving too fast. Sure enough, the client wasn't closing for several weeks and hadn't sent that email to the advisor.
The internet is a great resource and makes all of us far more productive. You shouldn't let the threat of online fraud prevent your from using this valuable resource. Many people mistakenly think that the biggest risk with corresponding electronically is in the transmission of information over the internet, but in reality, the larger threat is what happens to the information once it reaches its final destination. With a few simple steps of keeping your inbox clean, you can greatly reduce the chance of someone getting their hands on data that could be used to commit crime.
