Cyber Insurance Protection is Key for High Net Worth Families

Share on facebook
Share on twitter
Share on pinterest
Share on linkedin

Most people don’t have the time to analyze every message which lands in their inbox carefully – and that is what many bad actors exploit to carry out cyber attacks.

Experts say it’s not a question of if, but when these attacks will happen. The risks from cyber attacks for high net worth families are significant.

“The smartest of families understand that they probably will suffer a cyber attack,” Samantha Ravich told Worth. Ravich is the chair of the Center on Cyber and Technology Innovation at the Foundation for Defense of Democracies in Washington, D.C.

Today’s cyber risks go beyond passwords and software updates. Data security is complex as embedded technology broadcasts our daily lives with everything from cars to thermostats transmitting information.

High net worth families can reduce their risk by taking a few simple measures, according to Mark Rasch, an attorney specializing in cyber issues.

First, Rasch advises buying cyber insurance. 

“All of the very expensive stuff that can happen to you can be mitigated by appropriate insurance, but the trick here is to make sure that the insurance you are buying will mitigate the actual risks,” Rasch told Worth. 

As with any insurance, it’s essential to define your specific needs. That means verifying what the policy covers and to differentiate among possible cybersecurity scenarios.

Another easy measure Rasch recommends is using pseudonyms for social media accounts.

The people and firms often most entrusted by high net worth families may be the least equipped to provide cybersecurity, says Samantha Ravich.

“Law firms are notoriously bad at cybersecurity, and yet they hold critical information for high net worth families—not just financial information, but personal details that a family would not wish to see exposed,” Ravich said to Worth. 

Ravich also urges high net worth families to make sure any firm they retain, such as law or accounting firms, has the highest cybersecurity standards. Otherwise, she says, “take [your] business elsewhere.”

Vigilance is crucial, as innovations will lead to further risks.

Read what the experts say about travel security for high net worth families at worth.com.