Cybersecurity for investors: Let’s be careful!

Cybersecurity is a crucial concern for investors, and rightfully so! With an ever-increasing amount of transactions taking place via online channels, the risks of cyber threats have grown significantly in recent years. Protecting your personal and financial information is vital to preserving your wealth and peace of mind.

In this post, we explore the essentials of cybersecurity for investors, offering practical steps to safeguard your assets and personally identifiable information.

Understanding the Cybersecurity Landscape

Cybersecurity involves protecting computer systems, networks, and data from unauthorized access or attacks. For investors, this means ensuring that financial accounts, personal information, and strategic investment decisions are secure from cybercriminals.

Hackers often target investors due to the potential for significant financial gain. They might attempt to steal your identity, access your accounts, or manipulate your investments. Understanding these risks is the first step in implementing effective cybersecurity measures.

Common Cyber Threats Investors Can Face

• Phishing Attacks: Fraudulent attempts to obtain sensitive information, such as login credentials or financial data, often disguised as legitimate communications from trusted sources.
• Ransomware: Malicious software that encrypts your data, making it inaccessible until a ransom is paid, potentially resulting in the loss of critical financial documents.
• Identity Theft: Cybercriminals may attempt to steal personal information to open new accounts, apply for loans, or even file fraudulent tax returns in your name.
• Account Takeover: Unauthorized access to your investment accounts could lead to unauthorized trades, fund transfers, or asset theft.

Best Practices for Protecting Your Wealth

Use Strong, Unique Passwords: Create complex passwords with a mix of upper and lowercase letters, numbers, and symbols. Consider using a password manager for secure storage. If you decide to utilize a password manager, be sure to keep the software updated and safeguard your master password and/or keyword phrase.

Enable Two-Factor Authentication (2FA): This practice adds an additional layer of security to your accounts by requiring a second form of verification, such as a code sent to your phone.

Beware of Phishing Scams: Be cautious with unsolicited emails or messages requesting personal or financial information. Verify the sender and avoid clicking on suspicious links.

Keep Your Software Updated: Regularly update your software to defend against cyber threats. Ensure your antivirus software is up to date and runs regular scans.

Monitor Your Accounts Regularly: Regularly check your financial accounts for unauthorized activity. Set up alerts for unusual transactions or changes to your account information.

Secure Your Networks: Use strong passwords for your home and office Wi-Fi networks, and consider using a Virtual Private Network (VPN) when accessing sensitive information from public networks.

Limit Sharing of Personal Information: Be cautious about sharing personal information online. Avoid discussing sensitive financial matters publicly and be mindful of what you share.

Consider Identity Theft Protection Services: To further protect against identity theft, consider enrolling in an identity theft protection service. These services can monitor your credit, alert you to suspicious activity, and assist in restoring your identity if it’s compromised. While not a substitute for vigilance, they offer an additional layer of security to help safeguard your personal and financial information.

Alesco's Commitment to Cybersecurity

At Alesco, we prioritize the security of our clients’ information and are committed to robust cybersecurity practices. Our approach includes a partnership with a specialized Information Technology firm that collaborates closely with our internal operations department under the oversight of our Vice President of Operations and Compliance, who also serves as the firm’s internal cybersecurity officer.

Key Elements of Our Cybersecurity Strategy:

• Proactive Security Management: Our IT firm continuously monitors and upgrades our cybersecurity measures to safeguard against potential threats.
• Internal Security Framework: We have established comprehensive policies that frame our risk management practices, covering areas such as money movement, trading, and client/vendor communications.
• Vendor Vetting and Collaboration: We thoroughly vet any vendors with access to client data, ensuring they meet our stringent security standards, including a detailed review of their risk management practices.
• Data Encryption: Advanced encryption methods protect both data at rest and data in transit.
• Multi-Factor Authentication: Mandatory for all trading and money movement activities with our custodians.
• Secure Client Communications: We provide encrypted communication services for the secure transmission of sensitive information.

For investors, cybersecurity is crucial. By taking proactive steps to secure your financial information, you can protect your wealth from cyber threats and maintain confidence in your financial future.

At Alesco, we are dedicated to ensuring the highest level of security for our clients, continuously enhancing our practices to protect your assets and information. Please feel free to reach out to a member of our team if you would like to discuss Alesco’s approach to helping investors stay safe and secure.