Cybersecurity basics for billionaire families
Built on Chapter 3 of The Single Family Office by Richard C. Wilson. Full chapter text: FamilyOffices.com.
Wealthy families are prime targets for criminals. Their money moves in large amounts, often by wire. Their staff are small teams who trust each other. And details about the family are often easy to find online. A single fake payment request can cost more than a family office spends on security in years. Cybersecurity is now a core job of every family office.
Where the attacks come from
Fake payment requests. A criminal poses as the founder, an advisor, or a vendor and asks for an urgent wire. This is the most common and costly attack.
Hacked email. Once an email account is taken over, criminals read months of messages and copy the tone of real requests.
Phishing. Staff or family members click links that steal passwords.
Weak home networks. Family homes often have many connected devices with default passwords.
Oversharing. Social media posts reveal travel plans and children's schools.
The basics every office needs
Strong logins. Use a password manager and turn on two-step verification for every account, especially email and banking.
Payment verification. Never send money based on an email alone. Confirm every new or changed payment instruction by calling a known number, not the number in the email.
Two-person approval. Require two people to approve wires above a set amount.
Updates and backups. Keep devices updated and back up key data in a separate secure place.
Staff training. Run short training sessions a few times a year, including practice phishing tests.
Protecting the family itself
The office protects more than its own systems. Family members need help too. That includes securing home networks, reviewing privacy settings on social media, and teaching children about online risks. Some families hire firms to remove personal details from public data sites.
Travel deserves care. Posting a location after leaving, not before, is a simple habit that reduces risk.
Working with outside firms
Most family offices are too small for an in-house security team. A specialist firm can assess risks, set up controls, and respond if something goes wrong. Choose one with experience serving wealthy families, not only businesses.
Ask your banks and advisors about their own security. A breach at a vendor can expose the family just as much as one at the office.
Have a plan for when something goes wrong
Every office should know what to do in the first hour after a suspected attack:
- Who to call first, including the bank's fraud line.
- How to freeze accounts and reset passwords quickly.
- Which attorney and security firm to contact.
- How to tell family members without causing panic.
Speed matters. Banks can sometimes recall a wire if notified within hours. Keep the bank fraud numbers printed and stored offline, since email may be compromised during an attack.
Culture matters most
Technology helps, but most attacks succeed because a person was rushed or trusted the wrong message. An office culture where anyone can pause a payment and double check, even a request from the founder, is the best defense. Founders should tell staff directly that they will never be upset by a verification call.
What to take from this
- Fake payment requests are the biggest risk; verify every one by phone.
- Use two-step logins and two-person wire approval.
- Protect family members and homes, not only the office.
- Keep a written plan for the first hour after an attack.
This page is general information, not legal or security advice. Speak with a qualified cybersecurity firm and attorney about your family's specific risks.
Questions and answers
What is the most common attack on family offices? Fake payment requests sent by email from someone posing as a trusted person.
How can an office stop wire fraud? Verify every payment change by phone and require two-person approval.
Should family members be included? Yes. Homes and social media are common weak points.
What should happen after an attack? Call the bank's fraud line at once, freeze accounts, reset passwords, and call your attorney.