As the threat of cyber security attacks continues to rise, HUB24 and myprosperity have launched a digital education resource for financial advisers to help them address cyber risk, particularly for small businesses.
Created in collaboration with other industry experts, CyberHUB delivers interactive content, including insights, tips and case studies to “educate and enhance” financial advisers’ knowledge of cyber security and the solutions available to them to help mitigate risks.
FY2023–24 saw the Australian Cyber Security Centre receive more than 36,700 calls to its Cyber Security Hotline, a 12 per cent hike on the previous year. It also found that the average cost of cyber crime for a small business came in at $49,600 – an 8 per cent increase from the previous year – and $62,800 for medium businesses.
According to HUB24, exposure to cyber security threats has emerged as an increasing risk for licensees and financial advisers over the last 12 months as a result of the large volume of sensitive client data required to formulate a financial plan.
Furthermore, the firm noted that the reliance on email to exchange sensitive information between clients and advisers is only making advice practices a bigger target for would-be cyber criminals.
Despite this, as at 31 December 2024, Finura Group found that around seven in 10 (69 per cent) advisers still send key documents, such as statements of advice (SOA), via email.
Speaking with ifa late last year, Greg Hansen, HUB24 executive, group strategy, said that email is a “major point of vulnerability” for advice practices, missing out on crucial security protections available through customer portals, partly on the basis that older clients will struggle to adapt to the change.
Now, Hansen said advice practices have become more vocal about their cyber security concerns in recent times, seeking out ways to protect themselves and their clients.
“Advisers want to be more productive, but with emerging technology comes new risks, including cyber crime, which is not only on the rise but leaves financial professionals significantly exposed given the large amount of personal information they rely upon to provide tailored financial advice,” Hansen said.
Tracy Williams, general manager of myprosperity, said the acceptance from advisers that it is not a question of if a cyber incident will occur, but when, has motivated them to take the necessary steps to enhance their cyber security protections.
“Advisers are increasingly recognising the range of benefits client portals can provide their clients as well as their capability to strengthen value propositions,” Williams said.
“It comes at an important time in the advice industry’s evolution where trust, security and service are top of mind for clients.”
