Financial advice firms face a "constant and growing" threat of cyber attacks, according to trade body Pimfa.
To help firms tackle this challenge, Pimfa WealthTech, the market network and technology platform, has called on FinTech firms to identify solutions to strengthen cyber security defences for wealth managers and advisers.
Pimfa chief commercial officer, Richard Adler said: “Wealth management and financial advice firms and their clients face a constant and growing threat of cyber-attacks, including the ever-present danger of ransomware.
“These attacks are becoming increasingly sophisticated, posing severe risks to the trust between managers, advisers, and their clients.
"A single action could provide cybercriminals access that allows them to infiltrate a firm's systems, leading to an attack that could severely disrupt operations and impact clients lives which ultimately erode confidence across the sector."
The body has launched 'tech sprint', posing the question 'How can a specialist cyber security Fintech provide unique and additional value to support wealth managers in preventing, detecting, responding and recovering from cyber security attacks?'
Figures show cyber-attacks rose by more than 200 per cent after the pandemic.
Mayank Prakash, chief operations officer at Evelyn Partners and chair of Pimfa WealthTech Advisory Council, said: “Clients trust wealth managers with not just their money but also their hopes and life goals.
"Securing client information in a world where many organisations have experienced a security breach is a daunting task with the pace and severity of cybercrime accelerating all the time.
"Business continuity and protection for both the organisation and their clients is paramount, which is why this Tech Sprint is important and valuable."
The body is inviting FinTech firms to register their interest online with registrations closing on Tuesday, October 1.
tara.o'connor@ft.com
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