While many people think of cyber risk as a business issue, affluent families are often targets because of their personal, financial, and lifestyle information connected to their accounts and devices. Unfortunately, a cyber incident can affect far more than a laptop or email account. It can disrupt access to financial records, expose private information, trigger fraudulent transfers, or create expensive cleanup costs.
Even more unfortunately, cyber risk is not hypothetical, especially for high-net-worth families and family offices. Deloitte reports that 43% of family offices globally said they experienced a cyberattack in the last 12 to 24 months. In North America, that rose to 57%. For family offices with more than $1 billion in assets under management, it rose to 62%. Among those that were attacked, one-third suffered loss or damage. The most common impacts were operational damage, including loss of confidential or sensitive data, at 20%, and financial loss at 18%.
Luckily, there are things you can do to mitigate your risk and get help when incidents occur. Cyber insurance is designed to help with those losses and connect you with resources when something goes wrong. In this guide, we’ll cover common cybercrimes, tips to protect your family, and coverage you should consider. Let’s get started.
What Are Common Cybercrime Tactics?
Cybercriminals use a range of tactics to steal money and personal information, often relying on manipulating human behavior. Understanding how these schemes work can help families spot warning signs earlier and respond more carefully.
Deepfakes
AI-generated video or audio used to impersonate someone in your family or network. This can include something posted in an attempt to hurt you or your company’s reputation or used to gain illegitimate access to bank accounts or other sensitive information.
Deepfake Example
You receive a phone call from your son. It sounds exactly like him and came from his phone number. He is extremely upset because he’s lost his passport and wallet while traveling. He needs you to wire him enough money to get a plane ticket home. Scammers can actually use social media videos to create extremely realistic deepfakes like this and use spoofing devices to make it appear to come from a specific number.
Phishing
Emails, texts or phone calls that appear legitimate but are meant to fool someone into giving up login information, financial details or other personal data, or into clicking a harmful link or attachment.
Phishing Example
It’s a Tuesday, and you just got a text from your bank asking you to verify a recent transaction. The message has a link and says that urgent action is needed. You click on it, worried your card is going to get shut off, and it takes you to a login screen where you enter your username and password. Then something goes wrong and your login doesn’t go through. You shrug, thinking it’s just a normal error. Unfortunately, that message and website were both fake and now bad actors have your bank username and password.
Ransomware
Malicious software that locks files, devices, or systems and blocks access until a ransom is paid.
Ransomware Example
A household employee opens what appears to be a routine invoice. The file installs ransomware that locks the family’s shared drive, financial records, travel details, and personal documents, leaving your family unable to access important information. A message appears demanding payment in exchange for restoring access.
Data Breaches
Sensitive, confidential, or private information that is accessed, exposed, or stolen by someone who should not have it. This can happen through a hacked account, a weak password, a phishing scam or even an accidental disclosure.
Data Breach Example
A private bank experiences a cyberattack that exposes confidential client records. For a high-net-worth family, that could mean sensitive financial documents, account information, personal identification and even estate planning materials end up in the wrong hands, creating both financial and personal risk.
Confidence and Romance Scams
A scheme where a criminal gains someone’s trust through an online or personal relationship, then uses that connection to ask for money, collect sensitive information, or carry out fraud.
Romance Scam Example
A family member begins an online relationship with someone who appears charming, successful, and trustworthy. After months of frequent messages, the person claims to be dealing with an urgent financial problem and asks for help with a wire transfer. In some cases, the scammer may also gather personal details about the family’s lifestyle, travel plans, or financial resources, which can open the door to larger fraud or security risks.
While these tactics may seem simple, the truth is that cyber criminals are constantly refining and improving their scams and can catch even educated individuals.
Tips To Protect Yourself and Your Family
Despite bad actors becoming more and more sophisticated with these types of tactics, the good news is that many cyber risks can be reduced with a few thoughtful habits. Small steps can go a long way toward protecting your personal information, finances, and privacy.
Pause before you act
Be wary of emails, texts or calls that feel urgent, unusual or too good to be true. Scammers often try to create panic so people react before thinking things through. Slow down, ask questions, and confirm the request before taking any action.
Verify payment requests every time
Before sending money electronically, confirm the recipient through a trusted method, even if the request appears to come from someone you know. A familiar contact can still be compromised.
Share less personal information
Only provide sensitive details when there is a clear reason to do so. If someone asks for information like your Social Security number or banking details, ask why it is needed and whether there is another way to verify your identity.
Confirm identity before sharing information
Scammers can now use technology to imitate the voice of a family member, advisor or other trusted contact. Before approving a transaction or sharing private information, confirm the person’s identity in person or by calling a number you know is legitimate. Some families also use a shared password or security question for added protection.
Use stronger passwords
Avoid simple passwords tied to birthdays, pets, names, or other personal details. Choose long, unique passwords for each account, ideally with a mix of letters, numbers, and symbols. A trusted password manager can help keep them organized and secure.
Turn on multi-factor authentication
Add an extra layer of protection to your accounts whenever possible. Multi-factor authentication makes it harder for someone to get in, even if they have your password. Use it on email, banking, social media, health care portals, and any other account that stores personal information.
Be thoughtful about social media
Who you add and what you share online may be riskier than you realize. Do not accept friend requests, follows or messages from people you do not know. Criminals often use fake profiles to gather information and build trust before attempting fraud. Avoid posting details that expose your location, routines, travel plans or other personal information. Pay attention to what appears in the background of photos and videos and use strict privacy settings to limit who can view your content.
Review app and privacy settings regularly
Check what information your social platforms, apps, and third-party tools can access. Adjust permissions to match your comfort level, especially for apps connected to your contacts, photos, location, or account data.
Protect your devices
Phones, tablets, and computers can all be targeted. Use reputable antimalware software and keep your systems updated so you are better protected against viruses, spyware and ransomware.
Freeze your credit or set fraud alerts when appropriate
These tools can make it harder for someone to open new accounts in your name. They are worth considering if you want an added layer of identity protection.
Monitor your digital footprint
Keep an eye on unusual account activity, exposed passwords, and leaked personal information. Regular monitoring can help you catch issues early before they become more serious.
Keep work and personal accounts separate
For executives, family office staff, and others with access to sensitive information, it’s best to maintain clear boundaries between business and personal communications, logins, and devices.
Stay current on new threats
Cyber risks change quickly. Keeping up with common scams and new tactics can help you recognize a problem sooner and respond more carefully.
Bring in outside experts when needed
High-net-worth families and family offices may benefit from professional cybersecurity support. Specialists can assess vulnerabilities, test defenses, monitor for threats and provide training for family members and staff.
Coverage To Look For
Cyber insurance is not a substitute for strong cyber habits, but it can be an important backstop when prevention fails. For high-net-worth families, the right policy can help cover financial loss, support recovery and provide access to professionals who know how to respond when a cyber event affects your privacy, your accounts or your day-to-day life. The right policy can help your family recover faster and with more support when an incident occurs. Here’s some things to keep in mind when looking for coverage:
- Flexible limits
Look for coverage limits that fit your level of exposure. Some policies offer options ranging from $50,000 up to $2,000,000, which can be helpful depending on the size of your financial activity and the amount of sensitive information tied to your household.
- Fraud coverage that goes beyond online scams
A strong policy should address both online and offline fraud. That can include social engineering, unauthorized wires or payments, check forgery, counterfeit funds and identity fraud.
- Cyber extortion support
If a cybercriminal locks your files, systems or personal data and demands payment, cyber extortion coverage can help with response guidance and may reimburse an extortion payment up to the policy limit.
- Data recovery and system restoration
After an attack, the cost to recover can add up quickly. Look for coverage that helps pay for a professional to remove malicious code, restore software, reconfigure systems and recover lost or corrupted electronic data.
- Breach response expenses
If sensitive information is exposed, you may need legal guidance, forensic support and notification services. Some policies help cover the cost of investigating the breach, understanding what happened and contacting affected individuals.
- Privacy and security liability protection
If a breach exposes someone else’s personal information and you are later sued, this part of the policy may help with defense costs.
Gregory & Appel: We’re Here to Help
Cyber risk is personal, and for successful families, the impact can reach far beyond a single account or device. It can affect your finances, your privacy, and your peace of mind. Taking thoughtful steps to protect your information is a smart place to start, and having the right coverage provides valuable support when something goes wrong.
At Gregory & Appel Insurance, we help families think through risk from every angle. That includes understanding where cyber exposures may exist, reviewing whether current protections still fit your needs and helping you find coverage that supports your lifestyle. When the stakes are high, it helps to have a partner who knows how to ask the right questions and guide the conversation. If you’re wondering whether your current approach still fits your needs, we’re here to help. Fill out the form below to talk to one of our experienced private client advisors.
This content is not intended to be exhaustive, nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel or an insurance professional for appropriate advice. Gregory & Appel is neither a law firm nor a tax advisor; information in all Gregory & Appel materials is meant to be informational and does not constitute legal or tax advice.