Roaring Kitty and phishing attacks expose cyber headaches for IBDs
Firm leaders understand the cybersecurity threat is real. But have broker-dealers taken appropriate precautions to protect advisers and their clients?
March 17, 2021 4 MINS
A question at the start of the pandemic was how would broker-dealers, particularly independent B-Ds that operate on thin margins, adjust to technology and supervision of advisers during Covid-19.
It’s clear that firms had plenty of problems making that transition and now those issues are coming to the fore.
For the past 12 months, firm employees have been out of the office, scattered and working from home, the targets of cyber-attacks known as phishing. Advisers, meanwhile, have been reaching out to clients using unsupervised social media platforms.
Broker-dealers brace for cyberthreats
2020 was the year that independent broker-dealers needed to rely on technology more than ever, with home-office staff and a large number of advisers working from home or in remote offices. What if criminals breach a broker-dealer s cyber wall?
January 18, 2021 5 MINS
It’s the nightmare of every independent broker-dealer executive, particularly after the recently revealed Russian hack of upwards of 250 federal government agencies and businesses put a spotlight on cybersecurity. What if criminals breach a broker-dealer’s cyber wall by impersonating its financial advisers?
The phony advisers call the broker-dealer’s support line and request new passwords, which gives the intruders access to the personal information of thousands of clients.