One third of brokers don’t understand cyber risks

One third of Wall Street brokers do not understand cyber risks, according to a poll from consultant firm Josephson Associates.

Currently, there are some 70,000 registered financial advisers. The brokerage industry received the highest level of any other industry and had 85 percent of survey respondents who were familiar with the company and 50 percent who were pro-active about working together to address cyber issues. The survey notes that brokerages are taking actions to protect themselves, and 70 percent of those who’ve had their information breaches said that they’ve taken some form of proactive action to address them.

At the same time, those who felt the most competent to effectively respond to cybersecurity issues were seen as the least competent cyber-failure fighters. The latter were surveyed as to whether they were likely to use smart phones, tablet devices or laptops for client information while in the office and, despite that technology’s advancement, just 29 percent of brokers said that they knew how to respond correctly to security questions.

The researchers point out that financial services firms are not be the only group to experience security breaches and that others might see other value in the survey results.

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