The pace of security attacks on financial advisers and providers will increase more quickly than firms can combat them, consultants have warned.
Neil Cross, managing director of online security firm Advanced 365, warned that the ongoing rise of cybercrime was directly impacting the financial services industry, yet firms had to make sure they remained compliant with FCA regulations on data security.
Mr Cross said: “Many organisations have left themselves vulnerable due to historically perceiving data security as a cost with little benefit, as opposed to a strategic driver of the business.
“With attacks becoming more sophisticated, there is considerable need for financial institutions to embrace emerging technologies to maintain the trust of their customers and remain compliant.
In July, a poll of senior financial services executives, conducted by McKinsey, revealed that almost two-thirds (60 per cent) believe the pace of security attacks will increase more quickly than the ability of their organisation to defend themselves.
This comes as Intelliflo polled consumers, 89 per cent of whom said they expected their IFA to have a secure way to exchange financial information with them.
Nick Eatock, Intelliflo’s Executive Chairman comments, “It is essential that financial advisers give their clients a secure way to exchange information with them digitally.”
Regulator view
In December 2014, the FCA issued guidelines to advisory firms about how they should treat customer data and make sure they have proper data security policies.
The guidance said: “Firms should be alert to the financial crime risks associated with holding customer data and have written data security policies and procedures which are proportionate, accurate, up-to-date and relevant to the day-to-day work of staff.”
