When we think about wealth management, we often focus our attention on investment strategies, estate planning, and tax efficiency considerations. However, in today’s digital-first world, cybercrime poses a growing threat to your financial well-being. Protecting your assets from cybercriminals is just as important and should be a central pillar of any comprehensive wealth planning strategy.
Don’t miss: Online Safety Tips for You & Your Family for best practices to protect you and your loved ones in a digital world.
Digital security in wealth management
Wealth attracts attention and not always the kind you may want. Whether you’re a business owner, corporate executive, or a retiree managing a nest egg, you may be a prime target for cybercriminals. The financial stakes are high, and without proper safeguards, your wealth could be at risk. That’s why protecting your digital footprint against fraud is equally important as managing a portfolio.
The numbers speak for themselves
In 2024 alone, Americans lost more than $12 billion to cybercrime and fraud – and unfortunately, this figure is expected to rise as new, sophisticated technologies emerge, including generative artificial intelligence (AI)1. While anyone can fall victim to identify theft and financial fraud, mass affluent and high-net-worth individuals (HNWI) may be especially vulnerable to having their personal and financial information compromised.
So, what steps can you take to outsmart cybercriminals and protect what you’ve worked so hard to earn?
To get expert insights, I turned to Amber Buening, Security Outreach Director at Huntington Bank. Amber’s team provides comprehensive security education and engagement to Huntington colleagues and customers, as well as being actively involved in community outreach to educate the public about cybersecurity and fraud prevention. With a background in digital security, she brings a unique perspective on how high-net-worth individuals can better protect their wealth and legacy.
How to shield against financial fraud risks
Cybercriminals are evolving and so are their tactics. With advancements in AI, fraudsters now leverage automated programs – commonly referred to as AI bots – to penetrate digital systems, often mimicking human actions to deceive and exploit businesses to gain login credentials or sensitive financial data. That’s why it’s critical to recognize the risks and take proactive steps to fortify your assets.
The following strategies, recommended by Amber and her team, work best when used together. The sooner you strengthen your defenses, the better your chances of staying ahead of potential threats.
Online criminals are getting more tech-savvy. Explore our tips and strategies to protect your business from fraud.
Cybersecurity tip No.1: Be password smart
Passwords are your first line of defense – and the easiest way -- to stop cybercriminals. Unfortunately, many people view password management as an afterthought – leveraging simple passwords or reusing the same credentials across multiple websites, leaving them exposed to serious security risks.
Avoid using personal information or common words in your login credentials. Cybercriminals can easily decode a password made up of just seven lowercase letters2. Think of your passwords as the gatekeepers to your digital world – how secure they are makes all the difference.
Did you know?
A strong password – 15 characters with a mix of numbers and uppercase and lowercase letters – could take cybercriminals more than 50 years to decode.
Implementing multi-factor authentication (MFA) elevates your defense, adding an extra layer of protection by requiring users to confirm their identity through a secondary method, such as a text message or authentication app. By creating strong, unique passwords with the use of additional authentication methods, you can significantly reduce your risk and help keep your accounts secure.
Cybersecurity tip No. 2: Click with caution
Cybercriminals are getting bolder, sending phishing emails and text messages pretending to be from individuals or organizations that recipients know and trust – including financial institutions. Some even pose as professionals offering “exclusive” investment opportunities to lure victims into sharing personal or account information. One wrong click could expose you to identity theft or financial loss.
Think before you click: Don’t click on suspicious links or open unexpected attachments. If you’re on a desktop computer or laptop, hover your cursor over any links – without clicking – to reveal the true URL. It’s important to note that financial institutions, including Huntington, will never send unsolicited messages or links requesting your account numbers, usernames, passwords, or asking you to ‘secure’ your account.
Amber’s pro tip:
Avoid signing in to online brokerage accounts using public Wi-Fi in airports, hotels, coffee shops, or any unsecured network. If you need to connect to a public network, consider using a virtual private network (VPN). A VPN encrypts your internet connection, making it much harder for online criminals to intercept your data.
Additionally, one of the most effective ways to protect yourself is to work with a trusted contact, such as a Huntington wealth management advisor. When you have a reliable expert in your corner, it’s easier to ignore unsolicited pitches and identify potential red flags.
Cybersecurity tip No. 3: Protect and monitor financial accounts
Financial accounts like 401(k)s and pension plans are generally protected from lawsuits, creditors, and bankruptcy. However, protection for traditional Individual Retirement Accounts (IRAs) and Roth IRAs can vary depending on your state’s laws.
Affluent families often have complex, wide-ranging investments – which can make them targets for fraud. Add demanding schedules, reliance on others for financial management, and increased public visibility, and the risk grows even greater. That’s why high-net-worth families should consider careful strategies to better protect their retirement portfolios.
Amber’s pro tip:
A simple yet powerful step is to monitor your accounts regularly and set up real-time fraud alerts for any unusual activity or transactions. These alerts can help you quickly detect suspicious behavior and catch potential threats early. And remember, never share your login credentials, even with trusted individuals, unless you have safeguards in place to protect your information.
Click here to sign up for real-time alerts from Huntington.
Cybersecurity tip No. 4: Stay alert for real estate scams
The FBI’s Internet Crime Complaint Center (IC3) reported more than 9,500 real estate-based complaints that amounted to over $145 million in losses in 2023. Criminals can easily find out which properties are for sale, their asking prices, and even whether they’re under contract. A common fraud tactic: sending fake emails that appear to come from a trusted party – like a realtor, attorney, or banker – asking you to change payment details or wire funds to a fraudulent account.
Amber’s pro tip:
Always verify payment instructions directly with your agent or financial institution. With large transactions, a little due diligence can go a long way in preventing major financial losses.
Cybersecurity tip No. 5: Use trusts to shield assets
Trusts can be a valuable tool to manage and protect assets, potentially shielding them from fraud, lawsuits, creditors, and other financial threats. Simply put, a trust is a legal entity that can own assets such as investments or property – allowing you to maintain control while reducing your exposure to risk. From a cybersecurity standpoint, a trust can conceal personal details, such as where you reside and your home’s value. This adds a layer of protection against cybercriminals using open-source intelligence (OSINT) to collect publicly available information to identify vulnerabilities related to you and your assets.
Since trust structures can be complex, it’s important to work with an estate planning professional to choose the right strategy for your goals.
Amber’s pro tip:
At Huntington, we can coordinate directly with your Certified Public Accountant (CPA), attorney, and family employees to help ensure every part of your wealth network is protected – from investment accounts and trusts to sensitive transactions and estate planning.
Stay informed and better protect your wealth
Cybersecurity and wealth management are no longer separate conversations. As Amber shared, protecting your wealth means protecting your identity, financial accounts, and digital presence. Taking proactive steps today can help ensure your wealth – and your family’s security – for years to come.
Contact your Huntington team or find a location near you to learn how we can help safeguard your assets.
