Financial Services
Criminals target financial firms because that’s where the money is.
Cybercrime hasn’t changed this, but it has ramped up the speed and the consequences. Firms should balance being open with being secure. As attacks increase and regulators take closer notice, the pressure to act mounts. By recognizing that hackers will find vulnerabilities, leaders can improve the way they design and deliver services, manage risks, and train their teams.

Cyber Threats and Financial Services
Trust is the foundation of financial services. To win and maintain the trust of customers, financial institutions must demonstrate dedication to preserve confidentiality, confirm the availability of systems and services, and maintain the integrity of data. Regulators and stakeholders who rely on functioning financial markets are demanding this focus.
Maintaining trust has never been more challenging. Cybersecurity threats have moved from attacks on individual institutions to attacks on the financial system at large. Also, financial institutions are transforming with new digital channels, automation and other advanced technologies, introducing real benefits along with new risks. In response, regulators are heavily focused on systemic cyber risk and the contagion across firms and third parties. Regulators also expect financial institutions to enhance privacy protections on behalf of customers, who demand their confidential information to be well protected across digitally accessible products and services.
Valor Visibility In Financial Services
Visibility Into Your Most Challenging Cybersecurity Risks.
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Risk Insight
An unauthorized individual compromises the confidentiality or integrity, and subsequently breaches the trust of the Merger and Acquisitions Process. This may be done by accessing either the corporate email accounts, file storage systems, or through social engineering (unsolicited but sometimes convincing discussions on social media channels) of the investment firm, supporting legal counsel, or prospective company. This may begin through an unprivileged internal employee or outside attacker reviewing and sharing confidential information. Beyond potential reputation damage and delays, this may also result in M&A deals falling apart. Check out our latest guidance and insights on this evolving risk.Risk Insight
Through access to investment communication and emails an attacker is able to eventually to request redirection of investor funds. For example, company Autonomous Enterprises has reached the last step in their capital investment round of $1.4 Million with Private Equity Firm, Digital Storm Ventures. Having knowledge of this, the attacker messages the CFO of Digital Storm Ventures via Autonomous Enterprises CEO’s email account, requesting the funds be deposited into the corresponding bank account with routing information. Within 24 hours the funds clear, and the attacker has now successfully been able to redirect the transfer from the intended recipient, Autonomous Enterprises. Check out our latest guidance and insights on this evolving risk.Risk Insight
With insurance firms continuing to experience record losses resulting from recent cyber insurance payouts, the insurance underwriting and approval process is under review with potential sweeping changes on the horizon. It is expected that firms will be moving away from the existing model where organizations where able to ‘self attest’ to existing security controls. Insurance companies are moving to security questionnaires coupled with formal security audits to validate that businesses are in fact incorporating security measures appropriate to the risk landscape. Check out our latest guidance and insights on this evolving risk.Risk Insight
With expanding regulations at both the state and federal levels, organizations are now being required to report cyber breaches in most shorter time frames; typically within 48 hours or less. Inability to timely notify regulatory bodies and impacted customers/investors, of a data breach may lead to significant compliance penalties. Check out our latest guidance and insights on this evolving risk.Relevant News
Vendor Exposure
Vendor Criticality: Highly Critical
On average, these systems are expose private equity firms to the most risk. No other tools exposes organizations to as much opportunity risk as productivity tools such as Microsoft 365, Google Suite and others. PE firms heavily utilize spreadsheets (Excel / Google Sheets), presentations (Powerpoint / Slides), and documents (Word / Docs). Much of the analysis and presentation of information happens in these ubiquitous applications.Vendor Criticality: Highly Critical
On average, these systems are expose private equity firms to the most risk. As with all companies, PE firms use software to track their finances and accounting. Because their finances are very tied with those of their portfolio companies, firms will often use a package that combines portfolio management and reporting with its own finance/accounting.Vendor Criticality: Highly Critical
On average, these systems are expose private equity firms to the most risk. Most PE firms will have an online portal set up for their LPs / investors to access important information and get notifications.Vendor Criticality: Highly Critical
On average, these systems are expose private equity firms to the most risk. Most PE firms lean heavily on data from subscription databases. Sites like CapIQ and Pitchbook provide data on financial transactions, which helps the firms establish comps and get a sense for movement in the market.Vendor Criticality: Highly Critical
On average, these systems are expose private equity firms to the most risk. Most PE firms also use a system to keep track of the opportunities for investment that they’re evaluating. Common solutions include a custom Excel sheet or a traditional CRM like Salesforce. But there’s a new class of tracking software popping up that intelligently customizes data and workflows just for PE.Recommended Actions
Guidance Overview
Leaders can be proactive in combating threats of information loss and theft. All personnel should be continuously trained on how to spot relevant threats (Phishing attempts, etc.) and what actions they should take should they encounter them. Training must be coupled with a strong and consistent security culture, where security teams and business leaders engage in regular discussions on how individuals can do their part to reduce risk, and why security matters to the organization. In addition, individuals should be coached to be leery of unsolicited social media contacts (such as on LinkedIn), and messages. Email accounts and data storage systems, responsible for deal flow data and due diligence activities should be protected with Multi-Factor Authentication or Passwordless Authentication, whenever possible. This provides an additional safety mechanism for account access, in the event a user login in information (username and password) is compromised.Guidance Overview
In alignment with best practice, banking account information should NEVER be shared through email without proper data encryption in place. In addition, for every financial transactional request should be verified through the appropriate channels. In the event that a request for movement of funds occurs via email, the recipient should pick up the telephone and validate the information. An extra second or two of your time verifying before trusting, can potentially save you hours and months of future headaches and loss.Guidance Overview
Whether you are seeking to obtain initial cyber insurance coverage, or renewing your existing policy, proactively preparing for the underwriting process will save you thousands of dollars in resources. One immediate step Private Equity and Venture Capitalist Firms can take is to perform a Cyber Insurance Readiness Assessment with a trusted cyber readiness partner. In alignment with insurance underwriting requirements, cyber experts will identify your businesses gaps both in information security policy and practices and deliver a strategic roadmap to close these gaps. Performing a Cyber Insurance Readiness Assessment today will most effectively position you and your business for coverage at an affordable price.Guidance Overview
If not already in place, organizations should draft and socialize a formalized Incident Response Plan. An effective plan identifies key steps, stakeholders, and processes involved in the detection, reporting (to include cyber incident breach reporting) containment, and recovery of both cybersecurity and natural disaster incidents. In alignment with best practice, IR plans should be tested and updated at least annually, to ensure response activities are effective in reducing business impact.Valor Visibility In Financial Services
Visibility Into Your Most Challenging Cybersecurity Risks.
Top Risk Tracker
Risk Insight
An unauthorized individual compromises the confidentiality or integrity, and subsequently breaches the trust of the Merger and Acquisitions Process. This may be done by accessing either the corporate email accounts, file storage systems, or through social engineering (unsolicited but sometimes convincing discussions on social media channels) of the investment firm, supporting legal counsel, or prospective company. This may begin through an unprivileged internal employee or outside attacker reviewing and sharing confidential information. Beyond potential reputation damage and delays, this may also result in M&A deals falling apart. Check out our latest guidance and insights on this evolving risk.Risk Insight
Through access to investment communication and emails an attacker is able to eventually to request redirection of investor funds. For example, company Autonomous Enterprises has reached the last step in their capital investment round of $1.4 Million with Private Equity Firm, Digital Storm Ventures. Having knowledge of this, the attacker messages the CFO of Digital Storm Ventures via Autonomous Enterprises CEO’s email account, requesting the funds be deposited into the corresponding bank account with routing information. Within 24 hours the funds clear, and the attacker has now successfully been able to redirect the transfer from the intended recipient, Autonomous Enterprises. Check out our latest guidance and insights on this evolving risk.Risk Insight
With insurance firms continuing to experience record losses resulting from recent cyber insurance payouts, the insurance underwriting and approval process is under review with potential sweeping changes on the horizon. It is expected that firms will be moving away from the existing model where organizations where able to ‘self attest’ to existing security controls. Insurance companies are moving to security questionnaires coupled with formal security audits to validate that businesses are in fact incorporating security measures appropriate to the risk landscape. Check out our latest guidance and insights on this evolving risk.Risk Insight
With expanding regulations at both the state and federal levels, organizations are now being required to report cyber breaches in most shorter time frames; typically, within 48 hours or less. Inability to timely notify regulatory bodies and impacted customers/investors, of a data breach may lead to significant compliance penalties. Check out our latest guidance and insights on this evolving risk.Relevant News
Vendor Exposure
Vendor Criticality: Highly Critical
On average, these systems are expose private equity firms to the most risk. No other tools exposes organizations to as much opportunity risk as productivity tools such as Microsoft 365, Google Suite and others. PE firms heavily utilize spreadsheets (Excel / Google Sheets), presentations (Powerpoint / Slides), and documents (Word / Docs). Much of the analysis and presentation of information happens in these ubiquitous applications.Vendor Criticality: Highly Critical
On average, these systems are expose private equity firms to the most risk. As with all companies, PE firms use software to track their finances and accounting. Because their finances are very tied with those of their portfolio companies, firms will often use a package that combines portfolio management and reporting with its own finance/accounting.Vendor Criticality: Highly Critical
On average, these systems are expose private equity firms to the most risk. Most PE firms will have an online portal set up for their LPs / investors to access important information and get notifications.Vendor Criticality: Highly Critical
On average, these systems are expose private equity firms to the most risk. Most PE firms lean heavily on data from subscription databases. Sites like CapIQ and Pitchbook provide data on financial transactions, which helps the firms establish comps and get a sense for movement in the market.Vendor Criticality: Highly Critical
On average, these systems are expose private equity firms to the most risk. Most PE firms also use a system to keep track of the opportunities for investment that they’re evaluating. Common solutions include a custom Excel sheet or a traditional CRM like Salesforce. But there’s a new class of tracking software popping up that intelligently customizes data and workflows just for PE.Recommended Actions
Guidance Overview
Leaders can be proactive in combating threats of information loss and theft. All personnel should be continuously trained on how to spot relevant threats (Phishing attempts, etc.) and what actions they should take should they encounter them. Training must be coupled with a strong and consistent security culture, where security teams and business leaders engage in regular discussions on how individuals can do their part to reduce risk, and why security matters to the organization. In addition, individuals should be coached to be leery of unsolicited social media contacts (such as on LinkedIn), and messages. Email accounts and data storage systems, responsible for deal flow data and due diligence activities should be protected with Multi-Factor Authentication or Passwordless Authentication, whenever possible. This provides an additional safety mechanism for account access, in the event a user login in information (username and password) is compromised.Guidance Overview
In alignment with best practice, banking account information should NEVER be shared through email without proper data encryption in place. In addition, for every financial transactional request should be verified through the appropriate channels. In the event that a request for movement of funds occurs via email, the recipient should pick up the telephone and validate the information. An extra second or two of your time verifying before trusting, can potentially save you hours and months of future headaches and loss.Guidance Overview
Whether you are seeking to obtain initial cyber insurance coverage, or renewing your existing policy, proactively preparing for the underwriting process will save you thousands of dollars in resources. One immediate step Private Equity and Venture Capitalist Firms can take is to perform a Cyber Insurance Readiness Assessment with a trusted cyber readiness partner. In alignment with insurance underwriting requirements, cyber experts will identify your businesses gaps both in information security policy and practices and deliver a strategic roadmap to close these gaps. Performing a Cyber Insurance Readiness Assessment today will most effectively position you and your business for coverage at an affordable price.Guidance Overview
If not already in place, organizations should draft and socialize a formalized Incident Response Plan. An effective plan identifies key steps, stakeholders, and processes involved in the detection, reporting (to include cyber incident breach reporting) containment, and recovery of both cybersecurity and natural disaster incidents. In alignment with best practice, IR plans should be tested and updated at least annually, to ensure response activities are effective in reducing business impact.Solving Your Biggest Challenges
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