U.S. Regulators Say Hackers Targeting Wealth Advisers

FINRA identified cybersecurity as a technology management issue under the priority area of supervision, risk management and controls. The SEC also listed cybersecurity as a top priority in its Examination Priorities for 2016 notice, because at least 74% of advisers have been a target of a cyber-attack, it says. A current issue related to cybersecurity in the financial advising industry is wire fraud, said Michael Kitces, a certified financial planner and director of financial planning for Pinnacle Advisory Group. Cyber-thieves are contacting advisers, pretending to be clients on vacation, claiming they've been robbed, and requesting a wire transfer immediately, he said. Fraudsters are hacking into clients' personal emails and looking through their "sent" files to gain financial information, and contacting the advisers with phony requests.