Cybersecurity Demand Increases for Pension Funds | Laura Arnott Insights
VIGILANT INSIGHTS
Introduction
Cybersecurity continues to be a focus area for the SEC and the rest of the Financial Services and Investment Management industry.
As malicious actors increase their attacks using malware, phishing scams, and a host of other methods to gain access to vital systems, Pension Funds have increased their investments in cybersecurity.
Any Fund that has extensive personal private information for a large number of people will be a prime target for hackers.
In a recent Chief Investment Officer article, Vigilant Director, Laura Arnott, CFA, CIPM, IACCP®, CTPRP, CRISC, provided insight into the Cybersecurity risks Pension Funds face.
Laura Arnott Insights
Cybersecurity threats can come in many forms. However, Laura notes that phishing scams are the most prominent threat across industries. Phishing threats are fake emails designed to gain vital information, such as log ins, to gain access to a company’s system.
She notes that attackers are ideally after clients’ personal private information, as that data is what they monetize.
Ransomware can also be lucrative for attackers in other situations. However, Laura warns that the emails used for phishing are becoming more and more realistic and more prevalent.
Vigilant’s Conclusion
As Cybersecurity continues to not only be a growing concern for the SEC to monitor, but also for the industry itself, it is vital to stay alert and be sure proper policies and procedures are in place.
In the recently announced 2025 Division of Examination (EXAMS) Priorities, there was a specific focus on Cybersecurity as a risk area impacting various market participants. The cybersecurity examination focus areas that were provided by EXAMS could be the following below:
- Procedures and Practices.
- Policies and Procedures.
- Governance Practices.
- Data Loss Prevention.
- Access Controls.
- Account Management.
- Responses to Cyber-Related Incidents, including Ransomware Incidents.
- Alternative Trading Systems’ Safeguards to protect Confidential Trading Information.
For any questions or concerns you may have related to cybersecurity, or if you are in need of support or an evaluation of your compliance program, schedule a call with Vigilant by clicking the button below.