Cybersecurity Best Practice Every High-Net-Worth Family Should Know
As technology continues to make our financial lives more convenient, criminals are becoming increasingly sophisticated in their attempts to steal personal information and financial assets. Cybersecurity is no longer just an IT issue—it is an essential part of protecting your financial future. Let’s take a look at the most common financial scams that target high-net-worth individuals.
Wire Fraud: One of the Greatest Financial Risks
Wire fraud continues to be among the costliest financial crimes affecting affluent investors.
Criminals often infiltrate email conversations or impersonate trusted professionals, including financial advisors, attorneys, title companies, trustees, accountants, or family office personnel. They then provide fraudulent wire instructions that appear completely legitimate.
Because wire transfers are typically irreversible once completed, even a brief lapse in verification can have devastating consequences.
Cybersecurity Best Practice: Never rely solely on emailed wiring instructions.
Before initiating any wire transfer:
- Verify all instructions by telephone using a previously known phone number.
- Be especially cautious if wiring instructions change unexpectedly.
- Treat last-minute requests with skepticism.
- Confirm requests involving large transfers with at least two trusted individuals whenever practical.
Account Takeover: When Criminals Gain Access
Rather than stealing funds immediately, many criminals first attempt to gain control of your online accounts.
They may obtain passwords through phishing emails, fake websites, malware, or data breaches involving unrelated companies.
Once inside an account, criminals may:
- Change contact information
- Add new payment destinations
- Request distributions
- Sell securities
- Harvest additional personal information
- Monitor communications before initiating fraud
Strong passwords alone are no longer enough.
Cybersecurity Best Practice: Every financial account should be protected with multi-factor authentication whenever available.
Trust and Estate Planning Fraud
Estate planning documents and trust arrangements are increasingly being targeted by fraudsters.
Common schemes include:
- Fraudulent requests to change trust distribution instructions
- Fake beneficiary update forms
- Forged powers of attorney
- Impersonation of trustees or executors
- Attempts to redirect inherited assets
- Identity theft following the death of a family member
Cybersecurity Best Practice: Because trust administration often involves multiple professionals—including attorneys, financial professionals, trustees, custodians, and beneficiaries—it is essential to verify instructions through established communication channels.
No significant trust transaction should be authorized solely on the basis of an email.
Protecting Elderly Family Members
Let’s be honest, as we age, our cognitive ability is deteriorating. That’s why older adults remain among the most frequently targeted victims of financial exploitation.
Scammers commonly impersonate:
- Grandchildren
- Government agencies
- Banks
- Investment firms
- Technical support representatives
- Medicare or insurance providers
Cybersecurity Best Practice: Consider discussing cybersecurity with parents and grandparents before a crisis occurs. Families may also benefit from establishing trusted contacts who can help verify unusual financial requests.
Deepfake Technology Is Changing the Threat Landscape
Artificial intelligence now allows criminals to create convincing voice recordings and realistic video impersonations.
Imagine receiving:
- A phone call that sounds exactly like your child asking for emergency financial assistance.
- A video message appearing to come from your business partner authorizing a transaction.
- A voicemail that sounds like your financial advisor requesting an urgent wire transfer.
These technologies are becoming increasingly accessible and difficult to detect.
Cybersecurity Best Practice: Whenever an unexpected financial request is received—even from someone whose voice or appearance seems genuine—verify it independently using a trusted phone number or another established communication method.
In summary, the most effective cybersecurity strategy combines technology with disciplined habits, and planning ahead can help reducing confusion during stressful situations.