Why System Passwords Are Not As Easy As 123

As we all know, cybersecurity remains a top priority for the SEC and FINRA. Unfortunately, a recent Investment News article would suggest that firms do not take it as seriously, or, at least, firm employees do not.

A recent study of passwords by SplashData demonstrates that advisers and firm employees are not taking to heart their role in the firm's cybersecurity. The study showed that login passwords still include such impossible ones to decode like "12345" or "password".

It is hard to believe that in this day advisers do not accept their own responsibility for securing client and firm data. For example, firms should consider multilevel verification for access to client information. Another change would be to have computers lock (requiring a password entry) after a shorter period of time. Although possibly inconvenient, this will better protect firm systems.