Wealth management risk is of greater concern now than ever before, with a significant increase in fraud due to Covid-19. According to a joint study by Experian and the Department of Justice, the affluent are 43% more likely to experience identity theft than the average individual. Research shows that in 2019 alone, 1 in 15 individuals was the victim of identity theft and that over 30% of adults in the US will be a victim over their lifetime.
Why are Wealthy Families targeted?
- Higher visibility through the media, social media, broader group of contacts and/or increased accessibility to family and personal information online.
- The likelihood that they often deal in larger amounts of money and frequently wire funds of large amounts
- more accounts and credit cards that extend beyond family to often times include personal staff, allowing for increased areas of entry for fraud
Main Areas of Vulnerability for Wealthy Families and Individuals
- Identity theft including form jacking, in which cybercriminals steal sensitive information from online payment forms, account takeovers through data breaches, and new account fraud in the form of credit cards, mortgages, student loans or car loans.
- Credit card fraud is extremely prevalent amongst the wealthy. A recent study published by Wealth & Estate Planning stated that more than half of high net-worth clients reported they were victimized by credit card fraud.
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