How to Protect your Family Office from a Cyber Attack

And Save your Family Office $10M Dollars

The breach didn’t happen all at once.

It rarely does.

Instead, it started with a single crack. An overlooked email account belonging to an executive assistant at a European ultra-high-net-worth family office.

The kind of small vulnerability that, in a different world, might have gone unnoticed forever.

But this wasn’t a different world.

This was the world of sophisticated cybercriminals, patient and methodical.

They didn’t smash their way in; they let themselves in quietly, slipping past digital defenses with the ease of a pickpocket in a crowded train station.

Once inside, they didn’t strike right away. They waited.

For weeks, maybe months, they sifted through emails, scanned attachments, and mapped the inner workings of the family’s financial operations. They learned who made decisions, who approved wire transfers, where the money moved, and how it moved.

Then, when the moment was right, they pulled the trigger.

A wire transfer request appeared: $10 million, sent to an obscure crypto exchange with a name that sounded vaguely legitimate but wasn’t.

The family’s bank, to its credit, smelled something off and blocked the transaction. That was the good news.

The bad news?

The hackers had already stolen a trove of sensitive financial records and now demanded a $5 million ransom in Bitcoin.

The family refused to pay. That was the beginning of their real headache. What followed were months of operational chaos. Shutting down systems, rebuilding networks, tightening security measures that should have been there in the first place. The kind of disruption that, even if no money was directly lost, still left scars.

For family offices managing vast fortunes and sensitive data, the lesson was clear:

Cybersecurity isn’t just an IT issue. It’s a business risk.

And the attackers? They’re watching, waiting for the next crack to appear.

It's no surprise how important security is, and Family Offices agree. The numbers are staggering:

Nearly half of family office professionals—49% according to the 2024 UBS Global Family Office Report—say cybersecurity is one of the biggest risks to their investment portfolios.

Not market crashes. Not tax policies.

Hackers.

And yet, when you talk to the people running these offices, you hear the same thing: It won’t happen to us.

That’s exactly what the European ultra-high-net-worth family thought before their assistant’s email got hacked. Before the hackers sat quietly in their inbox, learning the rhythms of wire transfers, financial statements, and decision-making.

Before they attempted to steal $10 million.

The truth is, cybercriminals don’t need a battering ram. They don’t brute-force their way in.

They wait for someone. An assistant, a CFO, even the principal to slip up.

‍One weak password. One phishing link. One fake invoice.

So, what do you do? You make sure you’re not the next cautionary tale. Here’s how:

Step 1: Lock the Front Door (5-Minute Fixes)

Turn on Multi-Factor Authentication (MFA)

A password alone is like locking your front door but leaving the key under the mat. If a hacker steals it, they walk right in. MFA means they need a second key—one you have, not one they can steal.

• Use an authenticator app (Google Authenticator, Authy) instead of SMS codes, which hackers can intercept.
• Enable MFA on every financial, email, and investment account.

Use a Password Manager

Hackers know most people are lazy about passwords. And I'm sure you all have gotten a fake sign in attempt. But, if they steal one, they try it everywhere. Don’t give them the chance.

Here's how to keep your Family Office secure:

• Use Google Password Manager, 1Password, Bitwarden, or Dashlane to store and generate strong passwords.
• Set a unique, 16+ character password for each account.
• Try to never use the same password over and over again.
• Never mix personal and business passwords.
• Rotate passwords every 3 months.

Turn on Financial & Security Alerts

Would you know if someone logged into your bank account from Beijing at 3 a.m.?

I know I do.

Fraudulent and suspicious login attempts should always land in your email inbox.

Remember the story about the European Family Office? Well, that could have been stopped if email alerts were enabled on the EAs account:

• Set up alerts for new logins, password changes, and large transactions on all financial accounts.
• The faster you spot an attack, the better your chances of stopping it.
• Rotate your passwords.

Step 2: Stop the $10 Million Wire Fraud Before It Happens

Never Approve a Wire Transfer Over Email

Hackers love this trick: They impersonate a family principal or CFO and send an email that says something like:

"Urgent—wire $2.5M to this new account ASAP. No time to call. Please confirm once done."

It seems painfully obvious that it's not real. But, with AI Voice Agents and DeepFake technology getting stronger and stronger, it's hard to tell what's real and not.

Someone panics. Someone wires the money. Then you realize, too late, it wasn’t real.

• Always verify money transfers by phone: but not using the number in the email. Call a pre-verified contact that's saved in iMessage or in your contact book.
• Red flag: Any email demanding an immediate wire transfer that wasn’t pre-discussed.
• Always call the person's number you have saved in your phone.
• Watch out for AI Voice Agent's mimicking your colleagues.

Set Up Strong Bank Security Controls

Banks have security tools—but you need to turn them on.

• Require dual authorization for large wire transfers. One person alone can’t approve it.
• Limit transaction amounts to prevent high value fraud. A good number is anything over $50,000.
• Use a dedicated banking device. No transactions from personal laptops or phones. Ever.

Step 3: Ransomware: What Happens When Hackers Take Everything Hostage

Imagine waking up to find every single file: banking records, tax returns, investment strategies, locked. You get a message:

"Pay $5 million in Bitcoin, or your data is gone forever."

That’s ransomware. And it’s one of the biggest threats to family offices today.

How to Prevent a Ransomware Attack:

• Never click on suspicious links. One wrong click can install malware.
• Back up critical data daily. Keep copies offline and in the cloud.
• Install anti-ransomware software like CrowdStrike or SentinelOne across all office devices.
• Ensure your vendors follow security policies like SOC II Type II and securely manage your PII.

Step 4: Keep Hackers Out of Your Office & Home Network

Secure Your Wi-Fi Like a Fortress

• Change default router passwords. (Yes, even yours. - here is a nice guide on how to do that.)
• Set up a separate guest network for visitors and never let them on your main system.

Never Use Public Wi-Fi Without a VPN

Airport, hotel, and coffee shop Wi-Fi are hacker playgrounds. When you login to a public network you and your Family Office are exposed.

• Never login to sensitive financial accounts like banks, credit cards or investment accounts over a public network.
• Use a reputable VPN like NordVPN or ExpressVPN anytime you’re on public networks.
• VPNs can mask your activity but they are not protecting your accounts. Be vigilant.

Keep All Devices Updated

Hackers love outdated software and it’s often how they break in.

• Set your phone, laptop, and office computers to auto-update security patches.
• Replace old devices that no longer get software updates.
• Replace old software with secure, SOC II compliant cloud systems.

Step 5: Make Email & Messaging Bulletproof

Use Encrypted Email & Messaging

Your email is a goldmine for hackers. Don’t discuss financial matters over Gmail or WhatsApp.

• Use ProtonMail for email.
• Internally communicate through tools like Slack or Microsoft Teams.
• Signal or iMessage for messaging.

Spot Phishing Emails Before You Click

Hackers send emails that look real, until you look closer.

• Always hover over links before clicking. The real URL will tell you everything.
• Watch out for lookalike domains:
  • Legit: john@familyoffice.com
  • Hacker: john@familyoff1ce.com
• Keep an eye out for character manipulation (AKA typosquatting or homograph attacks)
  • Legit: familyoffice.com
  • Fake: famiIyoffice.com ("l" replaced with a capital "I")
  • Fake: familyoffíce.com ("i" replaced with an accented "í" from a foreign character set)
• Hackers register domains with different extensions to impersonate legitimate ones:
  • Legit: goldmansachs.com
  • Fake: goldmansachs.co (“.com” changed to “.co”)
  • Fake: goldmansachs.net (“.net” instead of “.com”)
• Some letters in different languages look identical to English letters, making it nearly impossible to spot the difference without careful inspection:
  • Legit: paypal.com
  • Fake: раураl.com (Uses Cyrillic letters “р” and “а” instead of Latin “p” and “a”)

Step 6: The Attack You Don’t See Coming: Insider Threats & Vendor Security

Sometimes, the problem isn’t an outsider. It’s someone inside the house.

Limit Access to Sensitive Data

Not every employee or vendor should have access to financial records.

• Use role-based access controls‍
• Give people access to only what they need.
• Audit user approvals and accounts.
• Delete any terminated employee accounts.

Vet External Vendors

Your accountants, lawyers, and investment managers handle sensitive data.

• Require cybersecurity audits for anyone with access to financial information.
  • SOC II, SOC III and ISO 270001 should be mandatory before engaging with a vendor.
• Ensure they use encrypted email and secure file storage on any shared information.

Step 7: What to Do If You Think You’ve Been Hacked

If you even suspect something is off, don’t wait. Move fast.

1. Change all passwords immediately.
2. Turn on Multi-Factor Authentication (MFA).
3. Freeze financial accounts if fraud is suspected.
4. Call your cybersecurity team or hire a professional firm.

Making Cybersecurity a Habit, Not a Hail Mary

A single mistake like one leaked password or one careless click can cost millions.

The smartest family offices treat cybersecurity like wealth management: proactive, disciplined, and ongoing.

Build a Culture of Cybersecurity:

• Quarterly training: Educate staff and family members on new scams.
• Incident response plan: Know exactly what to do in a breach.
• Business Continuity plan: What do you do if the worst happens?
• Regular security audits: Test for weaknesses before hackers do.

By following these battle-tested cybersecurity best practices, family offices can protect their wealth, reputation, and sanity.

Stay safe. Stay secure. Stay one step ahead.