In a recent article from InvestmentNews, North Pier’s Managing Partner Jim Scheinberg discusses rising cybersecurity threats. Below is an excerpt from the article.
Finra is warning brokerages to pay attention to rising cybersecurity threats, highlighting a recent advisory about a ransomware attack.
The Financial Industry Regulatory Authority Inc. sent an alert to its member firms Friday pointing to a Cybersecurity & Infrastructure Security Agency advisory from earlier this month. That alert, which was issued jointly with the Federal Bureau of Investigation, analyzed the tactics, techniques and procedures used by an outfit called the Ransomware Gang that is targeting financial services and other critical sectors.
Jim Scheinberg, managing partner at North Pier Search Consulting, said firms can’t afford to brush off Finra’s warning.
“They should be taking this very seriously,” Scheinberg said. “The threat of an attack is very real.”
Both Finra and the Securities and Exchange Commission are zeroing in on cybersecurity. The SEC released last year a cybersecurity proposal for registered investment advisors and followed up earlier this year with a proposal for broker-dealers.
Scheinberg’s firm does due diligence investigations of third-party providers for fiduciary advisory services, investment management and other functions. He said cybersecurity assessments are becoming more important in the outsourcing evaluation process.
“The time to know whether you’re ready for a fire is not when a fire is breaking out in your building,” Scheinberg said.
Cybersecurity also was highlighted as an examination priority this year by both Finra and the SEC.
Read the full article by clicking here.
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