How Advisors Can Protect Clients and Client Data Online | financial advisor

Due to the anonymity and long-range nature of the crime, cyberattacks are a growing problem for financial advisors. In 2021, according to research by Harris Poll, there were more than 300 million victims of cyber attacks. It’s no surprise that the study also showed that nearly 80% of internet users are concerned about their online safety.

RiskSecurity data also showed that in 2021, 22 billion records were exposed to cyberattacks. And most violations are financially motivated.

For financial advisors handling client data and money, cybersecurity must be a top priority. In essence, cybersecurity has become an essential part of providing objective financial planning advice. Helping customers achieve their financial goals without addressing the protection of their money is insufficient today.

Here are three categories of tools that financial advisors can suggest to their clients to keep them safe online so their hard-earned money can be protected from cybercriminals:

  • All-Purpose Privacy Tools.
  • Finance-specific privacy tools.
  • Bank-specific data protection tools.

All-Purpose Privacy Tools

These are cyber security tools that protect the data, privacy and identity of users on the internet. They do this by monitoring users’ activities online and alerting them to potential data, privacy, and identity breaches.


This software, provided by Norton, consists of three key components: identity, security and privacy. LifeLock detects and alerts users to potential identity theft, security threats, and privacy breaches.

LifeLock’s system includes privacy and dark web monitoring, credit monitoring, data breach notifications, credit file locking, payday loan reviews, and identity and social security number notifications.

In addition to notification, LifeLock also helps resolve cyberattacks and reimburses users up to $1 million for the amounts lost due to the attack and any external costs incurred in resolving such as. B. the recruitment of lawyers and experts.

Identity Guard is integrated with IBM’s Watson, which makes it possible to predict what activities are exposing a user to cyberattacks and provide real-time threat alerts. Like LifeLock, it crawls through the internet and notifies users of any cyber threats. These include social security number and credit monitoring, dark web monitoring, and account takeover detection.

Like LifeLock, it offers up to $1 million in reimbursement for cyberattacks. However, this reimbursement is limited to the money actually lost and not to the money paid for the services of lawyers and other experts.

Owned by Equifax, ID Watchdog also offers a large suite of cybersecurity services, including subprime loan alerts, social media account takeover, manipulation of public records and addresses, and cyberbullying. It also has features specially designed to protect children.

There is up to $1 million insurance for identity theft, including 401(k) losses.

How financial advisors can use them

While financial advisors are primarily responsible for wealth management, they can also help clients understand the need for internet security and how data breaches can expose them to financial fraud.

Based on this, they can recommend any of these universal data protection software tools to their clients, especially financial professionals. Managing someone else’s finances is a big trust, and financial caregivers need to ensure their loved one’s data, privacy, and identities are safe.

Financial advisors themselves need to be protected online, and any of these tools can protect them from unscrupulous elements.

Finance-specific privacy tools

These programs are specially designed to protect users from cyber attacks while performing various financial transactions. That is to say, these software tools allow users to carry out their financial transactions with complete confidence.


In addition to financial management tools, Carefull offers identity protection; passwords and document management; and intelligent account monitoring for scams, scams and errors. It also offers credit monitoring, credit freeze, junk mail opt-out and lost wallet help.

In addition, Carefull supports live recovery support and identity theft insurance, just like the general data protection tools.

More importantly, Carefull has a plan designed specifically for financial advisors. With this platform, advisors can protect the data and finances of older customers and their financial relationships.

Although Carefull has a bill payment feature that notifies users of upcoming bills, Silver Bills offers the most comprehensive bill payment service. Silver Bills is a concierge bill management app that processes bills on behalf of users and sends them regular reports.

Cybersecurity features include storing user data in IBM’s cloud using a network of firewalls and an encryption algorithm; providing 2-factor authentication; and ensuring that every bill payment is verified by an AI-powered algorithm, a human verifier and a dedicated account manager.

How financial advisors can use them

Financial advisors may recommend software like Carefull to their senior clients’ financial advisors or to their clients who are financial advisors. Alternatively, financial advisors can open their own Carefull account and onboard their senior clients directly, working with their caregivers.

Also, advisors can recommend a platform like Silver Bills to help customers pay their bills effectively and securely. Offering privacy services on this platform can give customers the confidence they need when paying bills online.

Bank-specific data protection tools

Bank accounts are popular targets for many hackers. Consequently, banks also recognize the need to secure their own systems to protect customer data. To achieve this goal, they now use various data protection tools.


Banks use artificial intelligence, multi-factor authentication, biometrics and encryption, among other things, to improve the security of data and money.

They also use comprehensive data protection services from companies such as IBM, NetGuardians and Checkpoint.

How financial advisors can use them

Although we are living in a fintech revolution, banks are still an important part of the financial industry. Financial advisors must advise their clients on the type of banks they should choose based on the bank’s security architecture. This ensures that their money and data are safe with these banks.

In summary, as the need for cybersecurity increases, financial advisors need to do more to ensure the safety of their clients’ data and funds. This includes proposing good cybersecurity services to protect them online and ensuring the banks and financial apps they use have enough internal security to protect them from security breaches, identity theft and cyberattacks.

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