Report Reveals One-Fifth of Family Offices Vulnerable to Cyberattacks

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According to the International Monetary Fund (IMF), the amount of “extreme financial losses” businesses suffered because of cyberattacks has more than quadrupled since 2017.

Because businesses in the financial services sector have an abundance of sensitive data and high-dollar balances, they have been hit especially hard by cybercriminals. The IMF estimates that “attacks on financial firms account for nearly one-fifth of all cyberattacks,” costing firms more than $12 billion in the last two decades.

According to the IMF, banks, insurance companies, asset managers, and similar organizations have shouldered most losses. Although its research doesn’t mention family offices (FOs), additional data released by J.P. Morgan Private Bank data confirms that, as of 2024, about one in four FOs have been victimized by cybercriminals.  

[Read About What Steps Family Offices Should Take to Compete.]

Although JP Morgan’s 2024 Global Family Office Report found that 25 percent of FOs have been exposed to a cyber security breach or financial fraud, one in five FOs have no cybersecurity measures in place.  

Family Office Service ‘Gaps’

Family office vulnerability may be unexpected in light of the growing popularity of FOs worldwide. As Avestix previously shared, while there are slightly more than 8,000 FOs now doing business around the globe, analysts predict that number will grow to nearly 11,000 in the next five years. 

JP Morgan's 2024 data — based on surveys of 190 family offices around the world — indicates that FO executives are keenly aware of their cybersecurity shortcomings.  

When asked about the “gaps” in the services they provide their clientele, 40 percent of respondents said cybersecurity — making it the leading gap. Family governance, succession planning, and family wealth education all followed at 31 percent.  

“The emphasis on cyber risk is unsurprising,” the Report found, “given that 24 percent [of FOs] report being exposed to a cybersecurity breach or financial fraud, even as more than one in five offer no cybersecurity services.”  

If there is a lack of focus on cybersecurity — both in the services FOs offer clients as well as within their operations — it could be a reflection of the makeup of C-Suites in family offices. 

#Avestix #AVXI #FamilyOffice #CyberSecurity

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About Susan Lindeque

Susan is a visionary entrepreneur, futurist, and thought leader with over 35 years of experience in business, finance, investments, real estate, wealth creation, and technologies.

Her Massive Transformation Purpose is:

“Working to Inspire Abundance for Humanity & Invest in Exponential Technologies.”

She is the founder and CEO of Avestix, a global asset, investment, advisory, and technology company focusing on public securities, next-venture capital, commercial real estate, and alternative assets based on ESG principles.

Susan is passionate about nurturing innovation, transformation, and disruption in the new decentralized economy. She leverages her extensive network and deep industry expertise to select and empower exponential technologies that will disrupt, transform, and impact industries.

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