Rising Family Office Cyber Threats Prompt Urgency
Cybercriminals go where the money is, but too many family offices are leaving the vault door wide open. A new report by Deloitte reveals that nearly half of family offices worldwide have suffered cyberattacks in the last two years. Amazingly, 63% operate without cyber insurance. These private financial entities, often managing billions in wealth, face growing cyber threats from phishing, malware, and social engineering.
Of 354 global family offices surveyed, 43% reported experiencing cyberattacks in the last 12-24 months, with 25% facing three or more incidents. The attacks led to financial and operational damage in one-third of cases, often involving data theft or business disruption.
High Value, High Risk
Family offices with over $1 billion in assets under management (AUM) were hit harder. Sixty-two percent of these wealthier offices reported attacks, compared to 38% of those with lower AUM. Larger offices are more likely to be targeted due to their size but also more likely to detect intrusions.
North American offices were most frequently attacked (57%), followed by Europe (41%) and Asia-Pacific (24%). Phishing was the top threat, with 93% of affected offices naming it, followed by malware (35%) and social engineering (23%).
Weak Cyber Risk Preparedness Exposed
Despite the clear risks, 31% of family offices admit to having no incident response plan. Another 43% acknowledge their plans need improvement. Only 26% consider their current plans robust.
While 85% use basic security tools like multi-factor authentication, more advanced defenses are lacking. Half have no disaster recovery plan, 63% lack cybersecurity insurance, and 68% have not implemented “know your vendor” protocols.
Family Office Cybersecurity a Priority For Some
The report notes that 22% of family offices now recognize cybersecurity as a top organizational risk. Despite that admission, only 15% have made it a strategic priority last year. Among larger offices, that number is higher at 22%, while in Asia-Pacific, it’s just 8%.
Training and Third-Parties Critical
Case studies in the report highlight the importance of employee training, a consistent reality across the spectrum of the economy. Vendor audits and external cybersecurity consultants are also employed. One CEO noted that simulating cyberattacks on staff helped uncover vulnerabilities, preventing real losses later.
“We treat risk management seriously,” said another leader. “We train everyone, manage devices, avoid public Wi-Fi, and simulate attacks biannually.”
Top Family Office Cybersecurity Recommendations
The report closes with 10 actionable steps for family offices. These include:
- Conducting annual cyber risk assessments.
- Implementing strong identity access controls.
- Training staff on phishing and social engineering.
- Regularly testing incident response plans.
- Using cybersecurity insurance and recovery protocols.
Six Shocking Stats from the Family Office Cybersecurity Report
- 43% of family offices globally have experienced a cyberattack in the past 12–24 months.
- 25% of those attacked suffered three or more breaches.
- 93% of cyberattack victims were targeted via phishing, making it the most common attack vector.
- 63% of family offices lack cybersecurity insurance.
- Only 26% of family offices have what they consider a “robust” cybersecurity plan.
- 31% of family offices have no cyber incident response plan at all.
Other News: Personal Cyber Insurance: What You Need to Know(Opens in a new browser tab)
🔍 Synonyms/Related Phrases:
- Private wealth cybersecurity
- High-net-worth cybersecurity
- Cyber risk for family offices
- Digital security for wealth managers
- Cyber protection strategies