Ever since the development of social media, its usage has posed serious threats for high-net-worth families. For example, an Instagram post on a vacation with the GPS tag can put a wealthy family member at risk of being kidnapped for ransom. Or, a hacker can gain access to an heiress’s email account and send fraudulent invoices to her family office for nearly a million dollars merely because her password was her dog’s name – a dog she plastered on her social media accounts.
In order to uncover a possible solution to this pertinent issue, MarketCurrents spoke with Wealth Matters Consulting CEO Rosemary Denney. In the article, Denney recommends that both wealthy families and the firms that manage their wealth create a robust social media strategy in order to combat security threats.
Specifically, in regard to wealth management social media policies, Denney states, “These policies ensure that everyone at the firm possesses a clear understanding of how their social media activity must work in connection to the business.”
When developing wealth management social media policies for firms handling the data and affairs of wealthy families, Denney advices firms to truly consider the long-term implications of their policy, review every endpoint device, utilize premium tools that go beyond the built-in privacy protections of online platforms, and regularly test their digital infrastructure for any weaknesses.
Denney also describes how the best social media policies leave no room for ambiguity. Instead, they should enable wealthy families and their wealth management firms to experience all of the benefits this digital resource has to offer – from maintaining personal and professional relationships to building an effective brand – all without compromising their security.