Security for the Family Office

Security is a hot topic in the family office world. Security can be thought of in terms of three broad areas:

  • Personal Security
  • Identity Security
  • Data Security

Personal security, or physical security, refers to the prevention of crimes against family members. Some basic measures can go a long way to provide protection.

Some examples are:

  • When traveling, do not post your plans or activity on social media.
  • When traveling out of the country, research safe areas to stay and consider hiring a driver.
  • If the family has minor children, consider the parents flying on separate flights
  • At home, make sure alarms are activated and that home cameras are working correctly and adequately monitor the surrounding areas.
  • Care should be taken when hiring new family household help.
  • Make sure in case of emergency (ICE) information is carried by each family member. Since most cell phones are locked it is often hard for rescue workers to find contact information for family members.
  • Use GSP on your cell phone so the location of family members could be tracked.
  • Consider getting fingerprints for all family members in addition to dental records.
  • Consider using a post office box instead of your home address. These are just a few preventative steps to take. You should consider consulting with a security advisor for a detailed security review.

Identity security relates to protecting items that would make it easier to be a victim of identity theft.

Protect yourself by limiting the amount of personal information you share on social media. Posting too much personally identifiable information can lead to Phishing scams, fake URLs that can trick you into entering your username and password on other sites, and a variety of other scams and hoaxes that can make your identity vulnerable.

Other common safeguards include:

  • Ensure social security numbers and cards are stored in a secure location and never give out your social security number via email.
  • Have credit card alerts set to monitor unusual activity. Common alerts are total amount of charges in one day, number of transactions within a day, or the current running balance exceeding a set limit.
  • Store driver’s license in a secure place in your purse or wallet.
  • Use a shredder at home to destroy sensitive documents that contain account numbers.
  • Monitor credit scores for unusual changes.  Always destroy old or expired credit cards.
  • Keep an eye on debit cards, savings, and checking accounts as well.  Work with the bank to set account alerts for unusual activity.

Data security is increasingly important with the use of mobile devices in all aspects of our lives. Data security is always relevant to electronic data, both professionally and personally, stored on computers, in the cloud, or on backup drives and discs.

Common sense should be applied here as well, including:

  • Use a security code or passphrase on your cell phone, computer, and other devices.
  • Use complex passwords for financial websites. Passwords should be at least 8 characters long, with a combination of letters, numbers, and special characters (symbols). Never use your date of birth, address, phone number, or other data that is easily known.
  • Make sure passwords are not written down or stored in your contacts. Consider buying a password protector application to store all passwords securely, accessible via a single complex password.
  • Review data backup procedures for laptops and other devices.
  • Do not use public computers to input sensitive password information. Extra care and caution should be used when accessing public WiFi networks.
  • Activate a computer firewall and ensure that anti-virus and anti-spyware software is up to date.

Consider cyber security insurance. Data is not covered by standard property insurance policies. A cyber policy can provide comprehensive coverage for data restoration and rectify issues in the event of a loss, no matter how it was caused, up to the full policy limits. In addition, it can provide comprehensive coverage for electronic crimes against you.

If you are a victim of identity theft, such as an IRS breach, an email breach, a lost or stolen credit card, or a breach at a retailer, take the following steps:

  • Notify all three credit bureaus: Equifax, Experian, and TransUnion.
  • Notify all banks and credit card companies.
  • Enroll in a credit monitoring service, such as Lifelock, or monitor your credit and accounts on your own.
  • Change all login usernames and passwords immediately. Make sure to use at least 8 characters with a combination of letters, numbers, and special characters.