Wealth Management

Cybersecurity Challenges and Financial Risks

Key Cybersecurity Threats

Data Breaches: In June 2024, hackers claimed to have accessed information on more than 30 million customers and staff of Santander, including HR information and account details. (Professional Wealth Management)
Third-Party Risks: Financial institutions face challenges in managing cybersecurity risks arising from third-party vendors, with 54% of organizations reporting a data breach caused by a third party in the last 12 months. (Secureframe)
AI-Driven Attacks: The rise of artificial intelligence has introduced new risks, such as deepfake technologies being used in social engineering attacks, increasing the sophistication of cyber threats.

The Financial Impact

Data Breach Costs: The average cost of a data breach in the United States amounted to $9.36 million in 2024, the highest among all countries. (Varonis)
Regulatory Penalties: Bayview Asset Management's $20 million settlement underscores the significant financial consequences of cybersecurity failures

Preparedness Recommendations

Third-Party Rick Management: Implementing stringent cybersecurity measures for third-party vendors to mitigate external risks. (Arxiv)
Adoption of AI Security Measures: Developing and integrating AI-driven security solutions to detect and respond to emerging threats.
Regulatory Compliance: Ensuring adherence to cybersecurity regulations to protect client data and avoid legal repercussions. (UpGuard)

THE PROBLEM

Wealth management services manage vast amounts of sensitive client data, making them prime targets for cyberattacks, data breaches, and third-party risks. In addition, staying ahead in a tech-driven financial landscape is crucial. Failing to integrate AI, automated solutions, or proper cybersecurity measures can lead to significant financial losses, legal risks, and erosion

Flux Technologies provides wealth management services with the tools to safeguard their clients' sensitive financial information while streamlining operations for growth. Our solutions are built to ensure your business thrives in both the digital age and the cybersecurity landscape.

OUR VALUE PROPOSITION

Advanced Cybersecurity: With our real-time threat monitoring, AI-driven protection, and compliance support, Flux ensures that your data is always secure, protecting both you and your clients from threats.
AI for Wealth Management: Leverage AI to enhance portfolio management, risk analysis, and customer engagement, ensuring better decision-making and operational efficiency.
Regulatory Compliance: Flux provides ongoing support to ensure compliance with regulations like SOC2 and other industry standards.