Ransomware and cyberattacks target family offices more often

According to a recent poll, family offices are increasingly being targeted by hackers, and many of them lack the personnel or equipment to be ready.

A worldwide legal firm Dentons conducted a poll of single-family offices, and found that 79% of North American family offices believe that the chance of a cyberattack «has increased dramatically in the past few years.» The percentage of family offices that reported experiencing a cyberattack increased from 17% in 2020 to 25% in 2023. According to the poll, half claim they are aware of another family office that was the victim of a hack.

Experts claim that family offices have become tempting targets for hackers and cybercriminals due to their substantial wealth and tiny workforces.

Family offices frequently employ few people and have access to extremely confidential information regarding the financial and business affairs of rich families. He claimed that because family offices prioritize speed and efficiency over risk management, they frequently lack the necessary equipment and preparation for potential intrusions.

But more and more worries about cyberattacks haven’t yet resulted in improved defenses. According to the poll, less than one-third of family offices believe their cyber risk management procedures are well-established. Less than half indicated they had updated staff training programs or routinely update cyber rules, and only 29% said their staff and cyber-training programs are «sufficient.»

The research suggests family offices utilize a website or intranet site instead of sending emails containing financial or personal information. The study also recommends using password vaults and conducting more thorough security due diligence on IT companies.