Today, ultra-high-net-worth individuals are often viewed as celebrities, sometimes for their wealth alone – and whether or not they want to be. With each new high-profile hacking, billionaires, executives, and entrepreneurs are learning what athletes and entertainers have known for years – fame makes them an even more attractive target for criminal and otherwise unscrupulous elements of society.
“Wealthy families that that do not have a defined cyber-security and credit management strategy in place are virtually handing criminals the keys to the front door. As current events have demonstrated, the consequences can be merely embarrassing or potentially catastrophic,” said Anthony Davenport, CEO of Regal Financial. “For the ultra-wealthy celebrity client, persistent cyber-attacks are inevitable. These extraordinary circumstances call for exceptional solutions that mobilize response at the first indication of an anomaly.”
Security breaches aren’t always the work of faceless hackers or shadowy conspiracies. Personal data is also occasionally compromised – deliberately or unintentionally – by financial advisors, household employees, or trusted family confidants.
“Developing a long-term family wealth strategy that bridges financial and lifestyle goals is the only way to effectively assess threats and vulnerabilities. Family offices work across disciplines to ensure all parties are working in coordination, with abundant check and balances in place with respect to personnel, payments and processes. This lets prestigious clients focus more energy on the opportunities that a prominent personal brand can create,” said Evan Jehle, partner and head of High-Profile Client Solutions at FFO (Flynn Family Office).
Even so, many wealthy families act only after a problem as arisen. Unfortunately, some cyber-security strategies seem to employ a similar approach, often leaving clients with a false sense of confidence.
“Those looking to protect their identity should be sure to implement safeguards that block unauthorized access to their confidential information rather than relying on systems that notify them only after an incident has already taken place. Otherwise, you’re effectively locking up behind the thieves after they’ve already left the scene of the crime,” said Mr. Davenport.
