Cybersecurity landscape gets rocky in 2014

InvestmentNews hangs out with IT experts to talk about the Heartbleed bug, regulation and other cyberconcerns

Apr 25, 2014 @ 2:28 pm

By Joyce Hanson

Even before the Heartbleed bug struck fear into online account users this month, advisers and their clients were waking up to the fact that cyberthreats to financial firms are on the rise in 2014.

JPMorgan Chase & Co. chief executive Jamie Dimon recently warned that banks will face “nonstop” threats from cyberattacks in coming months. But what's even more worrying for advisers is that midtier wealth managers also now face greater risks as cybercriminals and “hacktivists” get smarter about finding online security gaps.

To better understand what these threats entail — and to learn what advisers can do about protecting themselves and their clients — InvestmentNews held a Google Hangout on Friday with a couple of cybersecurity experts: Michelle Dennedy, chief privacy officer at McAfee Inc., also known as Intel Security, and John Dutra, founder of information technology firm GuidePoint Consulting. They worked together previously at Sun Microsystems.

Just before they joined a panel addressing data security and privacy issues at the 2014 Finance Logix industry conference in Las Vegas, Ms. Dennedy and Mr. Dutra spoke with me to discuss online privacy, regulatory action and other cybersecurity concerns.

Delve into additional recent stories on cybersecurity:

• The risk of cyberattacks in the financial services industry is on the rise in 2014, and wealth management companies, broker-dealers and registered investment advisers are not exempt.

• News about the Heartbleed threat revealed that online communication channels previous thought to be secure are in fact at risk due to a flaw in a piece of code in an open-source cryptographic library.

• The Securities and Exchange Commission has provided financial advisers with a detailed checklist of what it expects firms to provide in terms of cybersecurity protection. And here's a quick rundown of 10 ways advisers can improve their online security.

• In the same week that the SEC told advisers what kind of cybersecurity protections it wants them to implement, a government watchdog said the agency should get its own house in order.

0
Comments

What do you think?

View comments

Recommended for you

Featured video

INTV

Mercer's Cara Williams: How to achieve gender parity in the financial advice industry

The financial advice industry can learn from companies and countries that are well on their way to achieving 50/50 gender parity, according to Cara Williams, global wealth leader for the multinational client group at Mercer.

Video Spotlight

Will It Last As Long As Your Clients Do?

Sponsored by Prudential

Video Spotlight

The Catalyst

Sponsored by Pershing

Latest news & opinion

Voya's win in 401(k) fee suit involving Financial Engines bodes well for other record keepers

Fidelity, Aon Hewitt and Xerox HR Solutions are currently defending against similar fiduciary-breach claims.

Collective investment trusts getting more attention from 401(k) advisers

The funds are catching on due largely to lower costs and more product availability, but come with some inherent drawbacks.

Vanguard rides robo-advice wave to $65B in assets

Personal Advisor Services, four times the size of its closest competitor, combines digital and human touch.

CFPs, including brokers, may have to adhere to a stricter fiduciary duty

CFP Board revises its standards and aims to beef up fiduciary requirements of certificants.

CFP Board's proposal to expand fiduciary duty draws praise, carries risks

Some question whether brokers will drop the CFP mark or if the CFP Board will strictly enforce its new standard.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print