An expert in the field of cybersecurity explains major challenges and potential solutions for family offices and wealthy individuals.

The following contributed article is from Christopher Hamilton, who is managing director of alliances at BlackCloak. which recently sponsored a panel at the Family Wealth Report family office cybersecurity forum in New York City. (Panelists at the event were Hamilton – in the role of moderator; Kevin Pechumer, a member of the BlackCloak team; Jennifer Beckage, The Beckage Firm, and Elsie Russell Brown, Resilian. 

Jennifer Beckage is counsel to some of the globe’s largest organizations, brands, not-for-profits, celebrities, high net worth individuals, and Fortune 100 companies. She counsels on space, AI, and other technology. 

Elsie Russell Brown is founder and CEO of Resilian, a crisis simulation platform and advisory company that helps organizations prepare for cyber, operational, reputational, and emerging technology crises before they happen. 

Kevin Pechumer is an account executive at BlackCloak. BlackCloak is a provider of digital executive protection and concierge cybersecurity solutions for family offices, high net worth individuals, and their families. 

Cybercriminals are increasingly nefarious in their craft, continuously finding new vectors to target high net worth individuals and reap large financial rewards. According to the FBI’s Internet Crime Complaint Center’s (IC3’s) annual report, cybercrime costs reached a record high of $20.8 billion in losses last year. Business Email Compromise (BEC) and financial fraud were identified as the two leading methods of cybercrime, both of which target high net worth individuals (HNWIs). AI has only worsened the threat landscape, making deepfake impersonations and phishing emails and texts all the more difficult to detect. 

The combination of AI’s widespread availability with several other factors puts HNW individuals, their families, and the family offices that manage their wealth directly in the crosshairs of hackers’ sophisticated attack methods for a few important reasons:

-- HNW individuals – often business executives and people in the spotlight – may think they’re protected by a corporation’s cybersecurity program, but corporate cybersecurity rarely extends beyond the company’s four walls to protect the personal digital lives of business leaders. 

-- HNW individuals tend to have limited knowledge and skills in cybersecurity and self-protection, while family offices often lack the necessary cybersecurity skills and resources to protect their clients. 

-- The digital front doors of HNW individuals, their families, and their family offices are left wide open, making them attractive, high-value targets of cyberattacks. 

To protect their wealth, privacy, and legacy, a proactive, layered approach to cybersecurity is essential. Family offices – whose primary goal is to preserve and grow family wealth across generations – are ideally positioned to guide clients toward complete digital protection. 
 
Before I discuss how, let’s look at what.

The expanding human attack surface
Recent studies reveal that 43 per cent of family offices have experienced a cyberattack in the past 12 to 24 months (1), and 83 per cent of US single-family offices rank cyber risk as a top concern. (2)

What are the threats?
--  20 per cent of connected homes are accessible over the internet by strangers (3)
--  70 per cent of households have exposed account passwords (4)
--  76 per cent of clients’ personal devices were actively leaking data before using BlackCloak (5)
--  87 per cent of new BlackCloak clients had no security on their cell phones or tablets (6) 
--  39 per cent of new BlackCloak clients had been hacked without their knowledge (7)
--  Victims lost nearly $21 billion to internet-enabled crimes in 2025. The top crimes by complaint cost included:

--  Investment fraud ($8.6 billion)
--  Business email compromise ($3 billion)
--  Tech/customer support ($2.1 billion)
--  Personal data breach ($1.3 billion)
--  Confidence/romance scams ($929 million)  (8)

A comprehensive approach to personal cybersecurity and protection
Family offices must answer the call – not only to protect their high net worth clients, but also to protect their own assets and brand reputation. Doing so requires a multi-layered approach that covers every possible point of entry for highly motivated and resourceful threat actors, as outlined below.

Take a thorough assessment of the digital landscape
--  Take an inventory of all devices, accounts, Wi-Fi networks, and social media platforms used in the household. 
--  Evaluate each family member’s online habits and awareness of cyber risks. 
--  By understanding where vulnerabilities exist – whether it’s an outdated router, careless social media sharing, or weak password practices – families can prioritize and strengthen their defenses.

Reduce public exposure by minimizing the digital footprint
--  Families should remove unnecessary personal details from the internet, opt out of data broker sites, and avoid oversharing on social media. 
--  Private images of homes should be taken down, properties blurred on Google Maps, and real estate photos removed from sites like Zillow. 
--  Location tracking on devices and apps should be limited, as it can reveal sensitive patterns about routines and whereabouts.

Harden all personal accounts and devices
--  Enable multifactor authentication for email, financial, social, and healthcare accounts, using a secure password manager. 
--  Never reuse passwords. 
--  Install anti-malware on all devices and keep operating systems updated (ideally through automatic updates)
--  Avoid suspicious links or downloads. 

Ensure home networks and connected devices are secure 
-- Families should set up separate guest networks (with names that don’t reveal personal details).
-- Regularly update firmware on smart devices and ensure that cameras, appliances, and home automation systems are properly patched. 
-- Maintain an inventory of connected devices and automate updates where possible to reduce the likelihood of overlooked vulnerabilities.

Exercise extreme caution when traveling 
-- Always use a VPN when connected to a public Wi-Fi network.
-- Avoid scanning QR codes, especially if used to connect to Wi-Fi, such as a hotel network. 
-- RFID-protected bags should be used to shield payment cards. 
-- Turn off location sharing on unnecessary apps to add an extra layer of security while on the move.

Create a sustainable culture of security through ongoing education and strong processes
-- Family members – especially children and teens – should be coached on privacy settings, phishing awareness, and safe social media practices. 
-- Deploy tactics like using code words to verify urgent requests, checking sender addresses, and avoiding unknown friend requests. 
-- Establish tight coordination between the family and the family office to establish verification processes for financial transactions, ensuring multiple steps are required before payments are approved.

Taken together, these measures reduce risks, enhance resilience, and give families the confidence that their wealth, privacy, and legacy are protected against an increasingly sophisticated cyber threat landscape.

Practical steps for family office managers
Family office managers can build digital risk management into their operations through the following actions:

-- Be proactive in understanding or quantifying risk: Ask each household to self-assess using the 20-question self-assessment provided above.

-- Conduct full digital footprint audits: Map all personal and professional devices, accounts, domains, and connected entities.

-- Educate and empower: Deliver regular briefings on new threats and tactics. Conduct phishing simulations and hygiene reviews.

-- Adopt zero trust principles: No implicit trust – even for family members or close aides. Use strict access controls and authentication.

-- Monitor online presence: Establish active reputation and impersonation monitoring, especially for social media and public-facing platforms.

-- Establish internal processes to counteract fraudulent requests: Implement multiple steps to prevent scams and malicious requests from succeeding. For example, require signatures or approvals from two to three family office staff members before a payment is made.

-- Partner with experts: Work with trusted cybersecurity subject matter experts for ongoing monitoring, incident response, and forensic services.

Creating a holistic, layered defensive strategy, as outlined above, lays the foundation for maintaining wealth and legacy in the digital era. Given the high percentage of family offices that have been attacked, the cost of inaction is high. To maximize and preserve generational wealth, family offices must proactively champion and implement cybersecurity best practices across every facet of the principal’s life, ensuring that families can still enjoy many conveniences of the connected world without compromising their security, privacy, and peace of mind. 

Footnotes

1,  The Family Office Cybersecurity Report, 2024 - Deloitte
2,  2024 RSM Family Office Operational Excellence report
3,  Ponemon Institute
4,  Ponemon Institute
5,  BlackCloak    
6,  BlackCloak
7,  BlackCloak
8,  FBI Internet Crime Report 2025
 

About the author

As BlackCloak’s managing director of alliances, Christopher Hamilton builds strategic partnerships with companies seeking to provide its leading Digital Executive Protection (DEP) offerings to C-Suite executives and board members of Fortune 1000 companies. He has more than 20 years of experience in building strategic partnerships with trusted advisors, including private client law firms, to develop proactive, holistic risk management solutions, conduct crisis management exercises, and provide digital identity protection for their HNW and high-profile clients.