Why and how financial advice firms are increasing use of encrypted email to combat cybercrime

by | Mar 1, 2022

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Industry recognition of the need to safeguard emails is increasing in the face of financial cybercrime, with Origo’s Unipass Mailock recently marking 1 million emails sent though its encrypted system.

Cyber criminals employ sniffer programs which identify valuable emails and take copies of them, which the criminals can then exploit. For example, in just one email containing a financial advice fact find there would be enough detail to commit identity fraud.

Industry providers such as Aegon and Royal London are using military-grade encryption email services to protect their email exchanges with financial advice firms.

 
 

Anthony Rafferty, CEO Origo, says: “Putting in place a secure, military-grade encrypted email system, one which provides an audit trail for compliance purposes, now needs to be thought of as base-level security for providers and advice firms, and without a doubt where confidential and transactional data is being sent.

“And it is another way for providers and advice firms to demonstrate value to their respective clients in the precautions they are taking to safeguard their data.

“Origo’s Unipass Mailock system has now surpassed one million emails through the system. Looking at industry benefits, not only has this protected over a million provider/adviser/client communications, but we calculate that this equates to £1.9m saved in print, packaging and postage costs, as well as climate related savings of 459 tonnes of CO2 and 154,000 tonnes of water.

 
 

“The risk to businesses is not just potentially having to compensate clients for losses, and meeting fines imposed by the Information Commissioner’s Office (ICO), but the effect on client trust and the reputation of the business.

“As we move to a more digital advice experience, we expect to see providers look to protect this potential point of vulnerability and employ encrypted email as a matter of course.”

Standard security protocols advice firms can follow

 
 

Some general basic actions advice firms can take to help protect their businesses against cybercrime, include:

  • Having in place standard items of internet hygiene including firewalls, anti-virus software and a virtual private network (VPN) for off-site working.
  • Identifying where the risks to the business lie – are they with providers and platforms (reports indicate that some are insisting advisers send client details in an unsecure manner); or are they in unsecured communications between the adviser and the client?
  • Implementing formal processes and procedures, and staff training, to raise awareness of the potential dangers, and how to protect the business against them.
  • Having formal cybercrime processes written into a firm’s policy documents, including written instructions for staff to follow where, for example, fraud is detected.
  • Having in place appropriate controls for inward and outward communications – such as encrypted email.
  • Letting your clients know the potential dangers and what you are doing to protect them.

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