According to the Wall Street Journal, the “greatest wealth transfer in modern history has begun.”  Between now and 2042, it is estimated that Baby Boomers and GenX will transfer over $70 trillion in savings, of which approximately 86% will go to heirs (Cerulli Associates).

In addition, despite current inflationary pressures and residual negative economic impact from Covid-19, U.S. household wealth has jumped to a record $136.9 trillion, according to a 2021 Federal Reserve Study. 

This study was reaffirmed in January 2022, when the Global Wealth Report from the Credit Suisse Research Institute revealed a 24% increase in the number of ultra-high-net-worth individuals, and that the total number of millionaires in the U.S had reached almost 22 million. 

Unfortunately, newfound wealth isn’t without one major unintended consequence: significant personal cybersecurity and online privacy risks. 

You cannot hide your wealth from cybercriminals

Over 25% of ultra-high-net-worth families, family offices and family businesses — those with an average wealth of $1.1bn (R17.5bn) — have been targeted in a cyberattack, according to a Campden Research study. 

This is, in part, because it is not difficult for a cybercriminal to know who is wealthy or who has just come into wealth.

According to an article in the Financial Times, “cyber criminals are trawling through wealth managers’ websites as well as social media networks to target the super-rich and trick them into parting with hundreds of millions.”

In addition, online data brokers also compose lists of individuals who have recently sold small and mid-sized businesses at profit. Anyone, including cybercriminals, can purchase such lists legally. They can also be compromised and obtained via cyberattack. 

While wealth managers, social media, and online data brokers are some of the most common ways cybercriminals identify those with wealth, they are certainly not the only ways to do so. Editorial profiles, private information on the dark web, philanthropic activity, and political donations are also common indicators of wealth to cybercriminals. 

Protecting your wealth, family, and assets

A study by Accenture found that 77% of high-net-worth-individuals are more worried about being hacked than they are about their investments declining in value. Fears of cyberattack, fraud, and identity theft are even more overt for individuals and families who have recently come into wealth. 

Fortunately, there are a few things newly minted high-net-worth individuals can do to reduce risk, and protect the finances and assets that they and their families have worked so hard to achieve. These include:

• Online data broker removal – Personal information is readily available on hundreds, if not thousands, of data broker websites. Cybercriminals can purchase these records, or breach these sites, to collect the information they need to launch a cyberattack. Fortunately, anyone can opt-out of any data broker with a formal request to have your information deleted. Although a tedious task, you can start with this list of data brokers. A previous BlackCloak blog explains how information on data broker websites can be used against you.
• Create a private trust – In addition to the flexibility and tax benefits, placing your assets in a private trust can add an additional layer of security and privacy over both your finances and lucrative assets. For example, revocable living trusts can be formed under a generic name, helping you protect the confidentiality of your identity, finances, and assets from those who seek to compromise them. 
• Prioritize email security – It cannot be stressed enough — keep your email secure. If hackers gain unauthorized access to your mailbox, they can discover a lot about you and your private accounts, engage in identity theft, and launch social engineering attacks. A Verizon report states that over 90% of cyberattacks occur via email. Aside from setting the most stringent security controls that your email client allows, make sure you are using a strong and unique password, enabling two-factor authentication (2FA), and if available, utilizing email encryption add-ons. 
• Don’t forget device security – Installing consumer-grade anti-virus software on all desktop and mobile is a good start, but will only protect your devices about 50% of the time. Hackers and cybercriminals are always working on getting around current software security settings, and antivirus is no exception. Look for consumer solutions that offer some of the benefits inherent to endpoint detection and response (EDR) solutions to detect and respond to malicious activity. 
• Install Digital Home Security – The average home now has 50 connected devices, with each of them being a vector for cyberattack. That’s why home networks are at heightened risk of brute force and man-in-middle attacks; communications eavesdropping and hijacking, and DDoS and malicious code injection. To reduce risk, harden your ISP security settings and deploy network intrusion prevention technology to ensure the validity of online traffic flowing in and out of your home.
• Protect Your Family – For the wealthy, the head of household is not the only target. Attackers will prioritize the path of least resistance by attempting to infiltrate accounts that belong to your children or spouse, who are often less protected and less cyber-aware. Once they breach these family members, attackers can move laterally into the digital infrastructure of those with all of the access. To reduce this risk, you must ensure that all of the cybersecurity and privacy protections outlined in the above bullet points are afforded to every family member, even if they do not live in the same household.

Digital protection for high-net-worth individuals and families

The digital landscape is fraught with danger for those who have recently come into wealth or status; you must take privacy and cybersecurity seriously to avoid becoming a statistic. However, if you aren’t a cybersecurity expert, it can be difficult to keep up with or be aware of all the precautions and safeguards needed to keep hackers and cybercriminals at bay.

BlackCloak specializes in cybersecurity and online privacy protection for high-profile and high-net-worth individuals. Our Concierge Cybersecurity & Privacy Platform includes 24/7 threat monitoring, incident response, and personalized concierge client support to prevent, detect, and respond to targeted cyberattacks, fraud, identity theft, and other modern digital threats. 

Learn more about BlackCloak for individuals and families and download 5 Reasons Successful People Like You Choose BlackCloak. 

The post Cyberattacks Target Families of Newfound Wealth appeared first on BlackCloak | Protect Your Digital Life™.

*** This is a Security Bloggers Network syndicated blog from BlackCloak | Protect Your Digital Life™ authored by Evan. Read the original post at: https://blackcloak.io/cyberattacks-target-families-of-newfound-wealth/