In an age of billion-dollar data breaches and AI-generated deepfakes, it’s easy for wealth management firms — especially smaller RIAs—to feel outmatched. But the most effective defense isn’t necessarily the most advanced technology. It’s people. And in today’s evolving threat landscape, your people may be the single most important asset in your cybersecurity strategy. 

Cyber Risk Solutions Don’t Have to Be Complicated

The scale of the cybersecurity threat is daunting with the average cost of a data breach in the financial services industry reaching $5.56 million in 2025, according to IBM’s Cost of Data Breach Report 2025¹.But as sobering as these numbers are, many of the most effective safeguards are simple, practical and inexpensive. 

Employees are the Front Line

Most breaches still start with a single click. That makes employee awareness and training among the highest-impact investments a firm can make. It also means security can’t be a once-a-year compliance exercise. 

Creating a culture of vigilance means going beyond lectures and handouts. Some firms are using gamified training, real-world simulations and phishing exercises tailored to current events. These experiences not only educate — they also empower. Even smart, cautious people are susceptible when the bait is contextual. 

In addition to training, firms must enforce strong access controls and user governance. Many breaches stem from dormant super-user accounts or terminated employees who still have system access. Regularly auditing permissions is a low-cost way to significantly reduce exposure.

Three cybersecurity fundamentals every firm should prioritize: 

• Multi-Factor Authentication (MFA): It’s one of the most effective tools available, and it doesn’t require a massive investment. MFA stops many attacks that rely on stolen or guessed credentials. 

• User Governance: Know who has access to what — and why. Privileged accounts should be tightly controlled, and access should be removed immediately when roles change or employees exit. 

• Security Culture: Leadership must set the tone, model good practices and make cybersecurity a shared responsibility — not just an IT issue. 

AI: A Powerful Tool and a Potential Threat

Artificial intelligence is reshaping cybersecurity — on both sides of the equation.

Firms are beginning to use AI to detect anomalies, automate defenses and streamline compliance, but attackers are doing the same — with greater creativity and reach. Deepfakes, AI-generated phishing emails and zero-day exploits are on the rise. 

Here are just some of the emerging risks that companies need to monitor: 

• Voice cloning and impersonation scams 

• Realistic phishing tied to current events or public data 

• Rapidly generated, highly personalized social engineering attacks 

The speed and scale of AI make traditional defenses — like relying on misspellings or awkward phrasing in phishing emails — obsolete. Firms must evolve just as quickly. 

Data Retention: Less Is More

In a highly regulated industry, financial services firms often default to storing everything. But excess data isn’t just a liability — it’s a target. The longer data is retained beyond what’s legally required, the greater the potential exposure in the event of a breach. Extended data storage also increases the cost and complexity of recovery. 

Data backups are often created, duplicated and stored according to a clearly defined process. When it comes time to delete those backups, however, the process is rarely as rigorous.  

A disciplined data minimization policy not only ensures compliance, it’s also an essential part of any cybersecurity strategy.

Incident Response Isn’t Optional

Even with the best defenses, breaches happen. That’s why a clear, well-practiced incident response plan is critical. This doesn’t require complex infrastructure. It starts with making sure every employee knows what to do — and who to contact — when something seems suspicious. 

A robust response plan should include: 

• Clear reporting protocols for staff at every level 

• Rapid triage for small events (like phishing attempts) as well as major incidents 

• Regular tabletop exercises to validate and refine procedures 

• Executive engagement and communications to set the tone and drive accountability 

It’s crucial to remember that incident response isn’t just for emergencies. It’s for any moment of uncertainty.

Cybersecurity Is a Culture, not a Checklist

Technology will continue to evolve and so will cyber threats but a well-trained, empowered workforce remains the strongest defense any firm can build. The most successful firms understand that cybersecurity isn’t something you set and forget. It’s a continuous process — one shaped by leadership, embedded in daily behavior, and supported by clear procedures. From MFA and data hygiene to phishing awareness and AI vigilance, the building blocks of a responsible cybersecurity strategy are available to all companies, no matter their size.