Big four bank stresses importance of cyber security for advisers

Recent research from NAB has shown that over one in 10 Australian businesses (11 per cent) have experienced a data breach or cyber crime in the past 12 months, with average losses of $19,400.

With advice firms responsible for a substantial amount of data and personal information, NAB executive Julie Rynski said that keeping business and customer data safe is a significant task as cyber attacks become increasingly common.

“Business owners and their employees are only human, and we know that scams often happen when people are rushing, tired or distracted,” Ms Rynski said.

The big four bank also revealed that almost a fifth (19 per cent) of businesses operating in the finance and insurance services sector have experienced a cyber attack.

Namely, the most common breaches reported by finance and insurance services companies included phishing attacks (43 per cent), malware (29 per cent), and business email compromise (29 per cent).

“We want to help people highlight the moments when split-second decisions are made, which, as our research shows, can have devastating financial and emotional consequences,” Ms Rynski added.

As such, NAB offered some tips for financial advisers looking to keep clear of scams:

Recognise the signs

While scams come in several forms, they have common features, the bank said.

Whether they ask to update personal or banking details, request payment via unusual methods, or attempt to gain remote access to the business network, scams often seek an urgent response to try to stop the person from thinking twice about the correspondence.

Protect your data

Business emails may be targeted by criminals to intercept or change payment details and can appear to come from a legitimate source as phone numbers and email addresses can be spoofed.

Therefore, NAB advised that businesses should always be alert, and ensure not to click on suspicious links or give outsiders access to business devices.

“Backing up data regularly can help to prevent damaging losses,” the bank added.

Bolster your defences with multi-factor authentication

NAB said that enabling two or more points of authentication to allow access to a website or service, such as entering login details followed by a code sent to a mobile device, makes it more difficult for cyber criminals to access accounts and personal data even if they do get hold of password and login details.

Stay informed

With cyber criminals becoming increasingly sophisticated, the big four bank suggested advisers should keep across fraud alerts and the latest cyber threats that are targeting businesses and consumers.

Moreover, it urged business owners to start discussions with staff and customers on how to spot emails, texts, and other scams that could compromise security, and pointed to the Australian Cyber Security Centre and Australian government’s Scam Watch as useful resources.