According to the 2013 FOX Family Office Benchmarking: Technology in the Family Office study, security worries - which apply both to data itself and how it is communicated - are now mentioned just as often as the issue of technology integration . In turn, rising risk, complexity and Internet exposure are prompting wealthy families and family offices to pay more attention to their insurance coverage, industry executives have warned.

However, a recent white paper by Archway Technology Partners and TrustedFamily said many family offices do not have the necessary IT security measures in place to protect sensitive information – the ramifications of which are clear. The firms highlight that, according to Symantec's Internet Security Threat 2014 report, 552,000,000 identities were exposed to data breaches last year. 

Below is a summary of ten steps Archway Technology Partners and TrustedAdvisor believe family offices should take to safeguard data and minimize Internet security threats.

1.    Hire a trustworthy IT administrator;

2.    Map out data traffic and identify elements to secure: the paper notes that IT administrators need to understand where data is stored; where data moves to and from; and where data moves across the network.

3.    Set up a secure wireless network and limit access: family offices can take different approaches to secure Wi-Fi networks, such as blocking peer-to-peer networking;

4.    Encrypt devices: two strategies include disk encryption and file encryption;

5.    Secure data in transit with virtual private networks and secure sockets layer : the former requires a separate log-in but encrypt the online session, making it the best way of enabling remote access for employees; an SSL is a protocol for web browsing that secures online communication between two machines or from web browser to server ;

6.    Make it easy for employees to participate: the white paper recommends offering company mobile devices, but to emphasized the important of storing data on the network, not the device itself;

7.    Establish best practices, spanning, for example, data storage, turning devices off when not in use, and thoroughly managing email, passwords and social media;

8.    Plan for accidents or breaches: the paper recommends involving the entire team in preventative discussions, assigning roles, for instance, so that each employee knows what to do in an emergency;

9.    Create a clear process for granting and removing access to company information: designate a "gatekeeper" so that someone on the team is accountable for granting and removing access to information, and;

10.  Develop an employee handbook.

“Security is not just about technology,” the paper says. “It is about the relationship family offices nurture.”

It added: “By encouraging employees to contribute ideas, share knowledge and highlight potential issues, family office management can set the precedent and execute a plan. Developing technical talent in-house and connecting with reliable outside technology partners helps the organization stay up-to-date. Internet crime continues to grow daily, but awareness is family office’s best defensive.”