A fake invoice arrives in an inbox, written in a convincing tone and sent at just the right time. The payment seems routine, but the bank details are unfamiliar. This is often how breaches begin for wealthy families, which is why family office cybersecurity is now as important as tax, governance, and investment risk.
The report puts it plainly: “Cybersecurity insurance is essential not only for coverage, but for immediate access to expert support.”
Family Office Cybersecurity Meets A Hard Reality For Family Enterprises
Deloitte Private’s Family business cybersecurity, 2026, shows that cyberattacks are now almost routine for large, family-controlled companies. The firm surveyed 1,587 senior executives worldwide between March and June 2025. Each business had at least US$100 million in annual revenue, with families holding a controlling stake of over 51%. On average, these companies made US$2.8 billion in 2024 and a combined total of US$4.4 trillion.
For family offices, the message is clear. Your operating companies, portfolio companies, and shared services all share the same risk. Attackers are aware of this, and the report shows they rarely stop after one successful breach.
Family Office Cybersecurity: Real-World Attacks And Losses From The Report
- Phishing → invoice diversion: An employee got phished, attackers sat in systems for 45 days, then intercepted invoices and redirected payments; loss: $500,000+.
- Vendor email compromise → bank details swapped: A small vendor’s real email account was taken over, the attacker requested a new bank account for payment, and the company paid it before the vendor flagged the missing funds; loss: < $20,000.
- Human error → data breach: A programmer moved real patient data to an unsecured test site, criminals accessed 15,000–20,000 records, and the response ran just under $2 million (mostly insured).
- Funds-movement fraud attempts: A chair described increasingly sophisticated fraud tied to moving funds and “fraudulent instruments,” which caused losses; amount not stated.
Key Takeaways From The Survey
Almost three-quarters of family businesses (74%) experienced at least one cyberattack in the past two years. A third (33%) faced two or more attacks. Asia Pacific had the highest exposure, with 90% reporting at least one incident. North America was next at 77%, while South America had the lowest at 61%.
The types of attacks also matter for family office cybersecurity planning. Respondents most often reported malware attempts (49%), followed by phishing or business email compromise (48%). Social engineering was at 43%, third-party risk at 40%, and insider threats at 27%.
The impact is significant. Of those attacked, 54% reported financial losses, 51% faced operational harm, and another 51% suffered reputational damage. Only 4% said they had no loss or damage.
The Attack Pattern That Keeps Paying Off
The report’s interviews show how quickly a seemingly minor email event can lead to major losses. One executive described a phishing incident: “They intercepted invoices and redirected payments, resulting in a loss of over US$500,000, which we never recovered.”family-business-cybersecurity-n…
This story matches what family offices often see in claims. Business email compromise is inexpensive to carry out, difficult to undo, and often feels personal. It takes advantage of trust, routine, and hierarchy, and can spread across a family’s network, including advisors and vendors.
Strategy Gaps Show Up Before The Breach
Deloitte’s data highlights a confidence gap. Only 43% of respondents said they had a “robust” cybersecurity strategy that had never failed. Another 49% admitted their strategy had gaps, and 8% had no strategy at all.
Preparedness tracks that split. Just 52% felt prepared “to a large extent” to safeguard the business from a cyberattack. The remaining 48% felt only small, moderate, or no preparedness.
Perceptions of risk are also divided. Nearly 70% saw cyberthreats as a moderate or high risk in the next 12 to 24 months, but 32% still considered cyber risk to be low. This gap can leave family businesses vulnerable due to overconfidence.
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Basic Controls Dominate While Advanced Capabilities Lag
Most respondents said they use basic defenses. These include updated software (59%), network security (57%), multi-factor authentication or strong passwords (57%), and data backups (48%).
Advanced controls are less common. Only 40% had incident response playbooks, 36% had cyber maturity assessments, 32% had vendor governance, and 31% had identity management capabilities.
This imbalance is important because attackers are targeting more valuable assets. Basic security stops opportunistic attacks, but advanced controls help limit damage when attackers are more prepared.
For family office cybersecurity, this is the real challenge. A family office can set up multi-factor authentication and backups quickly, but often finds it harder to manage identity governance, vendor oversight, and practiced responses across multiple entities.
The Cyber Insurance Angle Family Offices Cannot Ignore
The report often connects resilience to how quickly organizations respond. In one health care case, a programmer moved real patient data to an unsecured test site. Criminals took advantage and accessed 15,000 to 20,000 records. The direct cost was “just under US$2 million,” and insurance covered almost all of it.
The main lesson is the value of coordinated expertise. The executive credited “legal, communications, and cyber experts assembled by our cybersecurity insurance provider.” They focused on transparency and regular customer updates, and lost only two customers after six months.
This is a practical way for family offices to think about coverage. Cyber insurance can cover losses and also provide expert support that families often do not have internally.
The report puts it plainly: “Cybersecurity insurance is essential not only for coverage, but for immediate access to expert support.”
Advice For Family Office Cybersecurity Programs
Deloitte’s final section offers a checklist for family businesses seeking fewer surprises and better results. It starts with governance: treat cybersecurity as an enterprise risk and involve the board and executives in strategy and investment decisions.
Next is measurement. Conduct regular cyber maturity reviews, benchmark against recognized standards, and update controls as threats change.
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Then comes hardening. Ensure patches are up to date, enforce multi-factor authentication, and keep backups secure and tested. Add threat intelligence, stronger access controls, third-party oversight, and incident response playbooks.
People are as important as technology. Train staff to recognize phishing, manipulation, and risky behavior. Monitor for insider risks, including accidental mistakes.
Finally, prepare for the worst-case scenario. Define response processes and test them with simulations. Connect cyber recovery plans to business continuity and disaster recovery.
Conclusion: Protect Legacy Like An Asset Class
The report’s conclusion addresses a common challenge for family businesses. Many recognize the risk but still have only partial readiness and limited advanced controls. Deloitte recommends an “end-to-end, anticipatory approach” that treats cybersecurity as essential for continuity, brand protection, and long-term stewardship.
For those in cyber insurance and cybersecurity, the message is clear. Family office cybersecurity requires the same rigor as investment due diligence, stronger governance than most mid-market companies, and a well-practiced response plan. Families that close the resilience gap protect not just revenue, but also trust, reputation, and the ability to build value for future generations.
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