Exposure to cyberattacks plagues asset management industry

Core Insights - Asset managers are particularly vulnerable to cybercrime due to the sensitive data and large volumes of money they handle [1] - A survey revealed that 93% of investment management executives experienced at least one cyber incident in the past year, with nearly 20% facing multiple threats [2] Cybersecurity Risks - 88% of surveyed executives acknowledged that a successful cyberattack could lead to asset withdrawals or losses, with this figure rising to 94% among CFOs [3] - Concerns include operational disruption (63%), financial theft or fraud (47%), loss of client trust (46%), and increased insurance premiums (30%) [3] Preparedness and Response - Ransomware is the type of attack that 51% of executives feel least prepared to recover from [4] - While most leaders believe employees can recognize AI-driven threats, about one-third lack full confidence, and only 17% prioritize security awareness training in the coming year [5] Cybersecurity Spending - Over 78% of firms increased cybersecurity spending in the past year, with 88% of firms managing $101 million to $500 million in assets doing so [6] - Registered investment advisers were the least likely to increase security budgets, with only 57% doing so, and 11% significantly decreasing IT spending [6] Assessment Frequency - 41% of firms still rely on quarterly or less-frequent cybersecurity assessments, creating vulnerabilities that attackers can exploit [7]