The Socially Savvy Advisor + Website: Compliant Social Media for the Financial Industry

Chapter 36What Cybersecurity Mistakes Should Advisors Avoid?

We've all heard the story of Target, in which 40 million retail customers had their credit card and personal information compromised. And we know how easy it is for bad actors to lie their way through in the offline world. Bernie Madoff made that clear.

Whether it's the Target data breach, concern over Facebook's privacy settings, or the growing trend of financial firms to move customers online, all are raising concerns about the protection of personal data.

Indeed, cybersecurity has become a buzzword, and it's serious business in financial services.

“Levels of cyber-risk that might be fine if you're selling dish soap can create enormous headaches for the financial services sector,” says Ed McNicholas, partner at Sidley Austin and co-leader of the law firm's privacy, data security, and information law practice.

The term cybersecurity has been in our lexicon since the 1990s.¹ As advisors and firms move to social channels, mobile devices, and iPads as a key method of handling all communications, security takes on a whole new level of importance.

What Criminals Gain and Consumers Lose

Cybercrime is the illegal collection or use of data for financial gain. Data provides access to bank, credit card, and other financial account information that can be re-sold or used for identity theft purposes. I'm reminded of my friend ...