Protecting Your Digital Assets: Cybersecurity Best Practices for High Net Worth Individuals

October is Cybersecurity Month, a perfect time to assess how well you’re safeguarding your digital assets. For high-net-worth individuals, the risks and implications of cyber threats are substantial. As a financial advisor with extensive experience, I understand the importance of protecting your wealth and personal information from cyber threats. Here are some practical, but unfortunately often overlooked tips to ensure your digital security is robust and up to date.

1. Utilize Multi-Factor Authentication (MFA)

Multi-factor authentication is a crucial tool for enhancing your account security. Beyond the basic text message codes, consider using hardware tokens like YubiKey or biometric authentication, such as fingerprint or facial recognition. These methods provide a higher level of security by ensuring that even if your password is compromised, unauthorized access remains difficult. For example, many financial institutions offer options for physical security keys that you can plug into your device or use via Bluetooth for authentication.

2. Implement Strong, Unique Passwords

Create strong, unique passwords for each account to minimize the risk of a widespread breach. Use a password manager like LastPass or 1Password to generate and store complex passwords securely. Opt for passwords with a mix of uppercase and lowercase letters, numbers, and symbols. Avoid using easily guessed patterns or personal information. For example, a strong password might look like “X!r9%Gf^2L9&yH@” rather than “MyDog123.”

3. Regularly Monitor Your Financial Accounts

Frequent monitoring of your accounts can help you catch unusual activity early. Set up real-time alerts for transactions and login attempts. Use a credit monitoring service to track changes to your credit report, which can help identify potential identity theft. For example, if you receive an alert about a new credit inquiry you didn’t initiate, investigate immediately to prevent further fraudulent activities.

4. Educate Yourself and Your Family

Understanding cybersecurity threats is essential for everyone in your household. Hold regular briefings on common scams like phishing emails, fake websites, and social engineering tactics. Use practical examples, such as how to recognize a phishing email from a bank that asks for sensitive information. Encourage your family members to think critically before clicking links or providing personal information online.

5. Secure Your Devices

Keep your devices secure by enabling encryption and installing reputable antivirus software. For smartphones and tablets, use built-in encryption options and ensure that you install updates promptly. For computers, use software like Bitdefender or Norton to scan for malware and threats. Additionally, set up a strong lock screen password or PIN to prevent unauthorized access if your device is lost or stolen.

6. Be Cautious with Public Wi-Fi

Avoid conducting financial transactions over public Wi-Fi networks, which are often unsecured. If you must use public Wi-Fi, ensure you’re using a Virtual Private Network (VPN) to encrypt your internet connection. VPNs like NordVPN or ExpressVPN create a secure tunnel for your data, making it harder for hackers to intercept sensitive information. Avoid logging into sensitive accounts or entering personal data on public networks whenever possible.

7. Back Up Your Data Regularly

Regular data backups are crucial for recovering from a cyberattack or data loss. Use both cloud-based services with strong encryption, like Google Drive or Dropbox, and physical backups, such as an external hard drive or secure USB drive. For added security, store backups in a different location from your primary data. Schedule regular backups to ensure that you have the latest copies of your important files.

8. Review and Update Security Settings

Periodically review the security settings on your accounts and devices. Update privacy settings on social media platforms to restrict access to your personal information. For instance, set your social media profiles to private and review app permissions to ensure they do not have more access than necessary. Regularly update your security settings to adapt to new threats and vulnerabilities.

9. Consult with Cybersecurity Experts

Work with cybersecurity experts to enhance your security posture. These professionals can conduct vulnerability assessments, offer tailored advice, and help implement advanced security measures such as network segmentation or advanced threat detection systems. They can also assist in developing a comprehensive security plan that addresses your specific needs and concerns.

10. Establish an Incident Response Plan

An incident response plan outlines the steps to take if a cyber incident occurs. This plan should include contacting your financial institutions, changing passwords, and engaging cybersecurity professionals. For instance, if you suspect your account has been compromised, your response plan should detail how to alert your bank, freeze affected accounts, and recover your data. Having a clear plan in place can minimize damage and streamline the response process.

Protecting your digital assets requires vigilance and proactive measures. By implementing these practical tips and staying informed about cybersecurity best practices, you can safeguard your wealth and personal information from evolving threats. As Cybersecurity Month reminds us of the importance of online safety, take this opportunity to review and strengthen your digital security. 

Please Note: Every investor's situation is unique and you should consider your investment goals, risk tolerance and time horizon before making any investment. Prior to making an investment decision, please consult with your financial advisor about your individual situation. 

The foregoing information has been obtained from sources considered to be reliable, but we do not guarantee that it is accurate or complete, it is not a statement of all available data necessary for making an investment decision, and it does not constitute a recommendation. Any opinions are those Jeff Green and not necessarily those of Raymond James.