The Role of Cybersecurity and Compliance in Modern Wealth Management

When families choose to work with us, not only do they entrust us with their financial goals, but also their highly sensitive personal and financial information. We never take their trust for granted and consider safeguarding this information a core responsibility of our fiduciary duty as advisors. In an increasingly digital world, potential exposure risks to cyber incidents encompass nearly every facet of our lives and it is imperative that we mitigate that exposure wherever possible. With that expectation in mind, our cybersecurity and compliance teams have designed and maintain a robust program to keep client information protected. 

Here are some of the ways we keep information and our systems secure:

• Leverage our close relationships with clients to proactively reach out as soon as we identify suspicious activities or communications.
  
  
• Invest in technology and security solutions designed to safeguard client data from a range of cyber threats. 
  
  
• Utilize a risk-based approach to identify, assess, and mitigate risks across our own systems and third-party vendors.
  
  
• Employ encryption to protect data both in transit and at rest, coupled with stringent access controls and multi-factor authentication to provide increased protection.
  
  
• Promote a culture of continuous improvement and regularly assess our controls and perform testing. Fairway employees participate in ongoing education to promote responsible data handling and embed a culture of security within the firm.
  
  
• Maintain strategic compliance procedures to help ensure cybersecurity remains an active priority rather than a one-time initiative. Regular internal reviews, due diligence exams, and policy updates ensure we align our procedures with regulatory expectations and industry best practices. 

While Fairway maintains safeguards designed to protect your personal information, cybersecurity efforts are more effective when viewed as a partnership. With that in mind, we often share recommendations with clients about how they can protect their data and financial assets.

Here are a few reminders from that guidance:

1. Never click on links from unknown sources. Check the full details of an email to confirm the sender’s email address is legitimate and without any typographical errors.
   
   
2. Be aware of calls from impersonators. AI tools exist that make impersonating phone calls easier, mimicking someone’s actual voice. If their request feels suspicious, call them back on a trusted number rather than redialing the same number.
   
   
3. Withhold sensitive information until you can confirm the source is legitimate. Companies will not ask for sensitive information through unsecured means.
   
   
4. Be smart with your passwords. Use distinct, smart passwords, and consider a password manager to enhance password strength and complexity. We like 1Password.
   
   
5. If you engage in social media, do so thoughtfully. Any platform designed for you to share personal information creates a risk. Limit what you share and be wary of who you accept into your network.
   
   
6. Donate only through official channels. We strongly encourage people to give back to their community, but ensure the support you provide is going to a legitimate source.
   
   
7. Email is not as secure as you think. Instead of sending sensitive information in an email, utilize secure portals to safely transmit information. 
   
   
8. Use credit freezes. These useful tools are free and help prevent identify theft by making it harder for bad actors to open credit accounts in your name. A credit freeze has no impact on your credit score, and can be easily set and lifted by contacting the three credit bureaus – Equifax, Experian, and TransUnion.
   
   
9. Educate yourself and your family. Ask the firms you work with what they are doing to keep your data safe and talk to elderly family members about how they can protect themselves against scammers.
   
   
10. Recognize that scammers manipulate your instincts. Scammers create a sense of urgency, trust, or curiosity to prompt a quick decision before you have a chance to question their request. If something feels too good to be true, it usually is.

Clients should always feel free to contact us with any questions or concerns about how Fairway is protecting their data. If you aren’t a Fairway client and don’t understand how your advisor is safeguarding your information, we encourage you to have that discussion with them as soon as possible.