Family offices become prime targets for cyber hacks and ransomware
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Family offices are under increasing attack from cybercriminals, and many don't have the staff or technology to prepare, according to a new survey.
More than three quarters, 79%, of North American family offices say the likelihood of a cyberattack «has increased dramatically in the past few years,» according to a survey of single-family offices by Dentons, a global law firm. A quarter of family offices surveyed reported suffering a cyberattack in 2023, up from 17% in 2020. Half say they know another family office that suffered a cyberattack, according to the survey.
With their large wealth and small staffs, family offices have become lucrative targets for hackers and cybercriminals, experts say.
«It's the Willie Sutton effect,» said Edward Marshall, global head of family office and high net worth at Dentons, referring to the famous bank robber who targeted banks «because that's where the money is.»
Marshall said family offices often have minimal staff with access to highly sensitive information about a wealthy family's finances and private companies. Since family offices value efficiency and speed over risk management, he said, today's family offices often don't have adequate technology and planning in place for possible cyberattacks.
«Family offices often have a bias toward efficient service versus security,» he said.
Using in-house security teams can be expensive for family offices, he added, while using third-party vendors and suppliers also creates risks from «sophisticated criminals and bad actors.»
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