Cybersecurity can’t be an afterthought for registered investment advisers (RIA). Your firm’s success heavily relies on a comprehensive cybersecurity strategy and implementation. If your firm doesn’t prioritize data security, you risk losing sensitive information and client trust.
And while most people think of phishing emails or scam calls as major cybersecurity threats, it’s also important to consider the physical devices those threats operate within: our phones, computers and other devices.
To that end, let’s explore the topic of endpoint protection, including the cost of inaction and steps your firm can take to better secure your devices.
What is endpoint protection (a.k.a., endpoint security)?
“Endpoints” are any devices that connect to your network – including computers, phones, tablets, printers and more. In the modern world, these devices are crucial to running your firm effectively.
Yet, they also pose a cybersecurity risk. Each time you connect a device to your network, you leave your firm vulnerable to cybersecurity threats. That’s where endpoint protection comes into play – it’s the act of securing your devices and mitigating the risks of cybersecurity threats.
Related: Why implementing cybersecurity regulatory compliance initiatives is a must for 2023
As more companies opt to add work-from-home capabilities in their quest to attract and retain talent, vulnerabilities through endpoint hacking only increase. Suddenly, everyone on your team has a work laptop, tablet, cell phone and printer, in addition to your office electronics. And beyond work-issued devices, it’s been reported by Sailpoint that one in three workers in the U.S. self-reported using at least one personal device to access their work.
Meaning firms with large amounts of sensitive data and complex technology systems are now in need of more advanced endpoint security, which may include several systems that detect and contain cyber attacks.
What are the risks of not employing endpoint protection?
The Securities and Exchange Commission (SEC) has made it clear that cybersecurity is topping their list of compliance concerns since at least 2022 – and it seems the trend will continue in coming years.
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It’s clear why: cybersecurity threats are rampant. As of December 2022, there are over 2,200 cyberattacks each day. Firms that fail to properly plan for cyberattacks are essentially sitting ducks.
If your firm does fall victim to an attack, hackers could:
- Threaten your firm with ransomware, which halts system activities until a sum of money is paid.
- Expose sensitive client information, like names, addresses, social security numbers and more.
- Cut off your access to client data, thus hindering your ability to provide financial planning services – leaving a permanent breach of trust between you and your clients.
IBM’s 2021 Cost of a Data Breach Report found that the average cost of a data breach is a whopping 4.27 million dollars. A similar report by the Ponemon Institute published in January 2020 found that the cost of a successful attack via endpoint cost (on average) 8.94 million dollars.
Additionally, your firm is at risk of regulatory fines from the SEC should you choose not to employ appropriate cybersecurity measures, which would come to light during an audit.
How can your RIA firm employ endpoint protection?
The best way to handle a cybersecurity attack is to take preventative measures that can effectively mitigate endpoint risks and contain active threats. It’s better to be proactive in these situations rather than reactive.
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Furthermore, RIA cybersecurity is a complex problem that requires advanced solutions – not a one-size-fits-all approach.
However, with a technology-backed process which addresses your firm’s unique risk points you can mitigate and manage risk from end to endpoint. An effective solution should enable:
- Endpoint Monitoring: Defend against security threats and establish a security score to see where your firm’s security may need improvement.
- Auto-Remediation: Any vulnerabilities detected are automatically remediated, allowing you to focus on other strategic priorities.
- Supervision: Gain insight into your employees’ IT environment and determine if there are any risks.
Ready to talk cyber? Learn more about RIA in a Box’s cybersecurity offering and how it can help arm your firm defend against cyber attack vectors.