Why wealthy households need a distinct approach
High-net-worth individuals (HNWIs) and affluent families attract attackers for good reason: access to large assets, sensitive tax and estate documents, and public profiles that expose personal details. Standard consumer protections help, but wealthy households benefit from an upgraded, holistic program that covers technology, people, and processes. In my 15 years working with clients and family offices, I’ve seen a single compromised credential lead to six-figure wire fraud and long-term privacy damage. A bespoke approach lowers that risk.
Core layers of protection (what to implement first)
Implement these controls in order of impact and ease to deploy:
- Identity and access hardening
- Require multi-factor authentication (MFA) on every financial, brokerage, and tax-prep account. Prefer authenticator apps or hardware security keys (FIDO2 / U2F) over SMS-based codes whenever possible. Hardware tokens (YubiKey, Titan) resist SIM swap attacks.
- Enforce unique, complex passwords using a reputable password manager. Where possible, enable passkeys or FIDO-based login for supported services.
- Device and network hygiene
- Keep operating systems and apps current with automatic security updates. Modern attacks often exploit unpatched software.
- Use endpoint protection with anti-malware and behavioral detection on all household devices; consider managed endpoint protection for family office devices.
- Segregate networks: put IoT devices (smart speakers, thermostats) on a guest VLAN separate from workstations and financial devices. Use a business-grade router or firewall with intrusion detection features.
- Use a trusted Virtual Private Network (VPN) when on public Wi‑Fi. For remote employees or family members who travel, consider a company-managed VPN profile.
- Secure communications and credentials
- For highly sensitive conversations (estate planning, legal strategy), use end-to-end encrypted messaging and email options or secure client portals. Avoid discussing wire instructions over unverified email.
- Verify any change in payment or wire instructions through a pre-established secondary channel (phone call to a known number, in-person confirmation). Implement a written wire transfer policy.
- Data encryption and backups
- Encrypt sensitive files at rest using full-disk encryption on laptops and strong file encryption for archives.
- Maintain 3-2-1 backups: at least three copies, on two different media, one offsite. Store an air-gapped or offline backup for critical financial and estate documents.
- Governance, vendors, and family rules
- Maintain an approval matrix for access to financial accounts and sensitive documents. Limit administrative rights to as few people as necessary.
- Vet third-party advisors, family office vendors, and household staff for cybersecurity hygiene. Require written security practices in vendor contracts.
- Run annual third-party risk reviews and vulnerability scans for family office infrastructure.
Incident preparedness and response
No system is perfect. Prepare a written incident response plan that defines roles and immediate actions:
- Immediate steps: isolate affected devices, change passwords and rotate keys, enable additional MFA checks.
- Notification: who to call internally (CISO or family office CIO), and externally (bank fraud department, broker compliance, cyber insurer, and law enforcement if warranted).
- Financial containment: freeze or place holds on accounts, issue stop-wires, and follow the bank’s fraud recovery procedures.
- Forensics and recovery: engage a vetted cybersecurity incident response firm for containment and forensic investigation to preserve evidence.
- Communication: a pre-approved family communications plan and a PR/accountant/lawyer contact list for reputational or tax implications.
See our guide on [what to do after a data breach](
