For example, a 2019 Accenture report revealed that the financial sector bore the highest average cost of cybercrime incidents, amounting to $18.5 million per incident across all industries. As our reliance on technology intensifies and remote work gains traction, it has never been more crucial for hedge fund firms to prioritize implementing robust cybersecurity measures.

Cetera Entities, Cambridge, and KMS Financial Services – SEC Sanctions

In 2021, the SEC imposed sanctions on eight firms, including the Cetera Entities, Cambridge, and KMS Financial Services, for cybersecurity failures that exposed the personal data of thousands of customers.

The penalties levied against the firms were significant, with Cetera paying a $300,000 penalty, Cambridge a $250,000 penalty, and KMS a $200,000 fine. The SEC noted that from November 2017 to June 2020, 60 cloud-based email accounts of Cetera Entities employees were compromised, resulting in 4,388 customers and clients having their personal information leaked.

SEI Investments Co. – Ransomware Attack

A ransomware attack on a vendor of SEI Investments Co. exposed investors’ personal information in around 100 of the fund administrator’s clients. Among the affected funds were Angelo Gordon & Co., Graham Capital Management, Fortress Investment Group LLC, Centerbridge Partners, and Pacific Investment Management Co.

The attack targeted M.J. Brunner, a service provider that developed and supported SEI’s investment dashboard and online enrollment portal. The hackers accessed files containing usernames, emails, and sometimes names, physical addresses, and phone numbers associated with the dashboard.

Finastra and Finablr PLC – Ransomware Attacks

The financial services sector has seen a string of ransomware attacks targeting suppliers. In March 2020, financial technology provider Finastra was hit by an attack forcing it to temporarily take its systems offline.

In December 2019, Finablr PLC’s foreign-exchange business Travelex experienced an attack that shut down its website for weeks, causing disruptions for banks that relied on its services. In response to these incidents, the SEC published a warning about sophisticated cyberattacks targeting companies it regulates and their third-party suppliers.

Levitas Capital – Business Email Compromise Attack

Levitas Capital, a hedge fund firm that specialized in capitalizing on market volatility, suffered a business email compromise (BEC) attack that led to its collapse. The cybercriminals gained access to corporate email accounts and authorized millions of dollars in fraudulent transfers to foreign bank accounts. Initially planning to invest an additional $16 million, the firm’s largest investor withdrew its funds after the BEC attack, causing the hedge fund to shut down.

Types of Costs Involved in a Data Breach

Data breaches can result in major financial losses for hedge fund firms, with costs falling into several categories:

• Suffering Direct Financial Losses: Cyberattacks can lead to stolen funds or unauthorized transfers, as in the case of Levitas Capital, which lost $1.2 million due to a business email compromise attack.
• Navigating Regulatory Fines and Penalties: Failing to meet cybersecurity standards may result in financial firms being subject to fines from regulatory authorities such as the SEC, with penalties typically ranging from $200,000 to $300,000 per firm.
• Managing Legal Fees and Litigation Costs: Data breaches often give rise to costly lawsuits and settlements. As noted in the 2022 Cost of a Data Breach Report by IBM and Ponemon, the global average cost of a data breach stands at $4.24 million, with the United States experiencing the highest average cost at $9.05 million per incident.
• Addressing Remediation and Recovery Expenses: Tackling vulnerabilities, restoring systems, and recovering data can be resource-intensive processes that require considerable time and financial investment.
• Mitigating Reputational Damage: Cyberattacks can lead to diminished trust from clients, investors, and future business partners. For example, the downfall of Levitas Capital was triggered by a major investor withdrawing funds following a cyberattack.
• Overcoming Lost Productivity and Business Interruption: Operational downtime from data breach disruptions can significantly impact productivity. The 2022 Cost of a Data Breach Report by IBM disclosed that the average cost of lost business due to a data breach amounted to $1.59 million, making up 38% of the total cost of a data breach.

Hedge fund firms must protect themselves and their clients from the far-reaching implications of cyberattacks. Therefore, it is essential to invest in comprehensive cybersecurity measures, such as establishing partnerships with managed IT services providers that can offer their expertise and support.

Preventative Measures for Hedge Fund Firms

In the face of these risks, hedge fund firms must prioritize comprehensive cybersecurity measures to protect their valuable assets and client information. One of the most effective strategies is partnering with a managed IT services provider specializing in the financial industry. By leveraging the expertise of managed IT services, hedge fund firms can implement robust security measures, including:

• Regular risk assessments: Managed IT service providers can conduct periodic risk assessments to uncover vulnerabilities and recommend appropriate solutions, ensuring the firm’s security posture remains strong.
• Endpoint protection: The use of advanced endpoint protection tools helps prevent unauthorized access to a hedge fund’s network and detect and remediate potential threats.
• Email security: Managed IT services can enhance email security by deploying advanced spam filtering, phishing detection, and multi-factor authentication to protect against business email compromise attacks.
• Network security: Managed IT service providers can design and maintain secure networks, utilizing intrusion detection systems, firewalls, and virtual private networks (VPNs) to safeguard sensitive data.
• Security awareness training: Employees can be a hedge fund’s weakest link. Managed IT services can provide ongoing security awareness training to help staff recognize and respond to potential threats.
• Incident response and recovery: In the event of a breach, managed IT service providers can assist with rapid incident response, remediation, and recovery to minimize the impact on the hedge fund’s operations and reputation.

Safeguard Your Hedge Fund Firm’s Reputation and Client Trust with SeaGlass

The increasing prevalence of cybersecurity breaches in the hedge fund industry underscores the need for robust protection measures. By partnering with managed IT services providers, hedge fund firms can bolster their defenses against potential cyber threats, safeguarding their assets and maintaining the trust of their clients and investors.

SeaGlass Technology understands the unique challenges faced by hedge fund firms and financial organizations when it comes to cybersecurity. As a managed IT services provider specializing in this sector, our cybersecurity specialists are committed to providing expert advice and outstanding services to protect your firm from cyberattacks.

Don’t let your hedge fund become another statistic in the growing list of cybersecurity breaches. Contact us today at (212) 886-0790 or online, and together, we’ll develop a comprehensive cybersecurity strategy tailored to your firm’s needs, giving you the peace of mind that your valuable assets and client information are secure.

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What Is A Network Security Assessment?

A network security assessment is essentially a business audit used to review a company’s network security measures. Undergoing a comprehensive network security assessment enables businesses to identify possible vulnerabilities in their systems and take stock of essential assets that may become compromised in the event of an attack.

Performing a network security assessment can also provide businesses with the data they need to establish enhanced security protocols and protect their most valuable assets. A network security assessment’s primary goal is to protect a company’s networks, data and devices from digital intruders.

Top Benefits of Network Security Assessments

Network security assessments can provide businesses with a wealth of benefits, such as understanding the potential implications of a cyber threat on the company and its infrastructure.

Network security assessments can help highlight areas in which a business is technologically vulnerable and requires a higher level of protection. Ideally, network security assessments should be performed regularly to maintain up-to-date data on any security issues the company may be experiencing. Some of the top benefits of network security assessments include the following:

Identifies Network Vulnerabilities

The main goal of a network security assessment is to identify potential vulnerabilities within a business’s network. These could be external threats, such as run-of-the-mill hackers looking to steal confidential or financial information, or it could be internal threats, such as inexperienced or rogue employees.

Using the information gathered from a network security assessment, an organization is able to make more informed decisions regarding their network security protocols. They can also use this information to help increase their online security level and reduce known vulnerabilities by creating robust internal controls, building off-site data backups or keeping systems updated.

Reviews Current Security Controls

Network security assessments can be used to review current security controls to minimize risks and improve frameworks. Using information gathered from an assessment, a business can develop a plan of action to implement new strategies for reducing the organization’s threat level while remaining in compliance with all state and federal regulations.

Reviewing security controls involves going over each detail of the business’s existing security posture and assessing the level of protection offered by the current information security controls. It is also essential to review the business’s compliance requirements to ensure that compliance is continually met going forward.

Prevents Further Data Loss

Data loss prevention is a top priority for most businesses, especially organizations that store large amounts of confidential customer information. Sensitive data can reside in a wide range of computing devices, such as virtual servers, physical servers, point-of-sale devices, file servers, databases, PCs, flash drives and mobile devices.

Due to the number of devices used to store and share data, minimizing data loss is critical for a business’s long-term success. A network security assessment can help prevent further data loss from occurring by determining what security controls are working, which are not and what controls are needed to address newly identified risks.

Who Should Consider Network Security Assessments?

There are several types of network security assessments that businesses can perform to determine their network’s security level. One of the most important is a risk assessment that can help a business identify what data and assets they risk losing in a cyber-attack event. Penetration testing is used to test security measures and understand the severity of the risk of identified vulnerabilities. Other types of network security assessments include compliance assessment and vulnerability assessment.
These are both important components of a comprehensive assessment.

Today, nearly every business relies on its network to aid in everyday business operations. Technology is continually adapting, which puts almost all organizations at risk for potential cyber threats. By conducting the different types of network security assessments mentioned above, businesses can help prevent costly attacks. Companies of all sizes and in all industries can benefit from network security assessments.

Reach Out To An Experienced IT Service Provider About The Benefits Of Network Security Assessments

Data breaches can result in lost money, corrupted data and a damaged reputation. It is important to protect an organization against these serious and common threats that impact every business type. For more information about the benefits of network security assessments or to speak with an experienced IT service provider, contact the experts at SeaGlass Technology.

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What Is A Network Security Assessment?

A network security assessment is an essential component of any solid business security plan. This type of audit is used to identify vulnerabilities that could compromise an organization’s network security. These vulnerabilities are generally grouped into three main categories: external, internal and social.

Conducting regular network security assessments can help businesses locate the source of the security gap and better understand how assets may be affected and how to protect against attacks.

The Types Of Network Security Assessments

There are more than 11,000 known vulnerabilities commonly found in business systems and software, according to the Common Vulnerabilities and Exploits (CVE) national database. Not all types of network vulnerabilities should be approached in the same way. Businesses should first consider their current security posture and assess the maturity of existing security controls.

There are several types of network security assessments designed to meet the unique needs of businesses that want to understand better where their business stands in terms of network security and protection. The three main types of network security assessments include the following:

Vulnerability Assessments

A vulnerability assessment is a complex process of identifying risks and vulnerabilities in computer systems, networks, hardware and applications. Data collected through a vulnerability assessment can provide security teams and stakeholders with the critical information they need to analyze and prioritize security risks.

While conducting a vulnerability assessment, various types of tools may be leveraged to provide more insight, such as vulnerability scanners, which can help identify potential flaws or threats within an IT infrastructure. These assessments often enable organizations to identify threats and weaknesses in IT security early on and before hackers have the opportunity to take advantage of these vulnerabilities.

Vulnerability assessments can also provide other key benefits, including assistance with compliance issues. Conducting regular network security assessments can help businesses meet cybersecurity compliance and regulatory requirements for areas such as HIPAA. With the clear and concise information gathered from a network security assessment, businesses are better equipped to prioritize IT security fixes.

Penetration Testing

A pen test, short for penetration test, is a type of cyber-attack that is simulated on a computer network or system to check for potential vulnerabilities that could be exploited by hackers. Pen testing often involves the attempted breaching of individual applications to determine if specific security gaps exist that cybercriminals could leverage to gain access to a system, steal confidential information or corrupt essential business files. Insights gathered from a pen test can be used to enhance IT security policies.

Penetration testing generally consists of five main stages. The first stage of the process is the planning phase, in which test goals are defined and intelligence is collected. Next, scanning tools are used to help businesses understand how a target can respond to possible intrusions. Cyber attacks are then staged to uncover the target’s vulnerabilities.

Application protocol interfaces (APIs) may be imitated to determine if a vulnerability can be used to gain access to the system. With the test results, a business can learn how vulnerabilities are exploited, what data was accessed and the amount of time a tester was able to remain undetected in the system.

IT Audits

An IT audit is a comprehensive evaluation of an organization’s information technology infrastructure, operations and policies. A business may choose to conduct an IT audit to determine if company data and assets are protected and if IT controls align with business goals.

The primary goal of an IT audit is to establish if information-related processes and controls are working properly. This process involves evaluating the systems in place responsible for securing business data, determining the risks to a business’s assets and ensuring that information management processes comply with all relevant IT policies, laws and standards.

Reach Out To Learn More About Our Managed IT Services

No business is completely invulnerable to network security threats. That is why conducting regular network security assessments is vital for companies in all industries. Learn more about the different types of network security assessments or speak with an experienced managed IT service provider at SeaGlass Technology by calling 212.886.0790 or schedule a consultation online.

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Notable IT Security Risks For Small Businesses

This is especially important because the tactics utilized by hackers and other malicious agents have become more sophisticated, which means the coordinated attacks they launch have also become more complex. Let’s closely analyze five such risks and appropriate ways to protect yourself against them.

Installing Malware Inside The Network

Cybersecurity threats such as viruses and trojans are included in malware. Malware essentially refers to malicious code that attackers create in order to access an organization’s networks and steal (or destroy) information. Spam emails, non-secure website downloads, and connections established with infected devices or computers all frequently lead to the appearance of malware.

According to Verizon, 28% of breaches in 2019 involved malware, and 27% of malware incidents can be attributed to ransomware, which is a form of malware that encrypts a victim’s files. In these cases, the malicious agent will demand a “ransom” from his/her victim as a way of guaranteeing restored access to the data that was compromised.

Phishing For Your Employees’ Data

Phishing attacks are among the most common types of threats individuals within an organization face today. Phishing is the phenomenon that occurs when a malicious agent poses as a known contact and subsequently dupes a user into clicking on an unsafe link, downloading something malicious, or releasing personal information (contact information, address, account details, income, etc.).

According to Cybint Solutions, 62% of businesses experienced phishing and social engineering attacks in 2018. The company also estimated that 43% of cyberattacks target small businesses. There are several precautions you can take in order to protect yourself against phishing attacks. You can establish a strong email security gateway such as Mimecast, set up post-delivery protection like IRONSCALES, or implement security awareness training.

Lack Of Digital Hygiene & Training

You and all of your organization’s employees should always remain informed about the most recent digital trends and processes. If you are not aware of which strategies are the most effective for combating each type of risk or issue, you will not be fully prepared to face these threats. Therefore, it’s important to introduce cybersecurity awareness and digital hygiene at all levels of your organization.

The simple act of emphasizing practices such as the use of strong passwords and multi-factor authentication technologies can ultimately make a significant difference in your organization’s overall level of security.

Hackers Holding Small Businesses For Ransom

As previously mentioned, hackers can go after businesses via a type of attack known as ransomware. It’s important to develop effective strategies against ransomware, partly because of how dangerous this attack can be. According to the cybersecurity news website CSO, 67% of businesses that have been victims of ransomware have permanently lost part of or all their organization’s data.

The emergence of cryptocurrencies such as Bitcoin, Ripple, and Litecoin played a part in accelerating the increase in ransomware, given that ransom demands can be paid anonymously with these types of currencies.

Contact The IT Security Experts At SeaGlass

Reach out to the professionals at SeaGlass Technology in New York City to learn more about the different types of network security risks your organization may face. We are an IT security company that is dedicated to providing clients with the most innovative and efficient solutions, which we can customize to meet your unique needs and objectives.

The staff at SeaGlass are highly certified and have extensive knowledge of top OEMs and ISVs. Thus, we can determine which technologies are best suited for each specific case and issue. We can perform a network security assessment to identify any weaknesses within your network(s) that may make your organization more vulnerable to data breaches and other similar attacks if not addressed promptly. Call SeaGlass Technology today at 212.886.0790 or schedule a consultation online for more information about our IT security services.

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According to Ernst & Young’s (EY) 2018-2019 Global Information Security Survey, approximately 76% of organizations didn’t invest more in security measures until after a major cyberattack occurred. Data breaches and other cyber assaults that result in the compromise of sensitive information can often take months to completely resolve, and they can cost organizations millions of dollars. Therefore, it is critical to regularly conduct a network security assessment in order to ensure that your organization is adequately protected from various types of threats.

What Is A Risk Assessment?

An IT risk assessment is essentially a type of “audit.” It is a process used for identifying hazards that could negatively affect your organization’s capacity to operate properly. This type of evaluation should constitute the foundation of your organization’s overall security strategy.

According to Forrester Research’s 2019 State of Enterprise Risk Management (ERM) report, only 36% of organizations possess a formal ERM program and 62% of businesses have experienced a major risk event during the last three years.

Types Of Network Security Assessments

The two primary types of network security assessments that organizations utilize are:

Vulnerability Assessment

This type of review process is designed to uncover weaknesses (and assess how severe these vulnerabilities are) in an organization’s IT infrastructure. Testing tools such as web security and network scanners are frequently utilized for vulnerability assessments.

Penetration Testing

Penetration testing, also called “ethical hacking”, this type of test is intended to imitate a real cyberattack or a social engineering assault (e.g. phishing). There are multiple methods for conducting penetration tests, including external testing, internal testing, and blind testing. This process is not complete until the attacker covers his/her tracks until all evidence of his/her existence has been erased.

Benefits Of Network Monitoring Services

A network security assessment is designed to ensure your networks, data, and devices remain safe and to identify potential entry points for cyberattacks.

There are many advantages to network monitoring services, although we will pay particular attention to the following five:

Taking Inventory Of Your Resources

Prior to testing your assets for weaknesses, it’s imperative to take stock of all the valuable things that your organization wishes to secure. The most effective way to do this is to record your entire IT infrastructure so that you can more rapidly identify an attacker.

Predicting & Preventing Network Downtime

Network monitoring services assist you with the prevention of unforeseen network outages. If downtime is preemptively dealt with, your organization can optimize service availability.

Testing Changes To A Network/Device

If changes to a device or network are not properly implemented, the addition or reconfiguration of this network or device can negatively impact your system of networks. Network monitoring solutions give you the ability to test new connections.

Observing Bandwidth Usage

Many network administrators view bandwidth utilization as one of the most vital indicators of a network’s performance.

Your organization’s employees can use as much bandwidth as they need while still verifying that all of your business operations are being carried out properly and efficiently.

Generating Network Performance Reports

Network monitoring services typically involve dashboards that allow you to track network activity in real-time. These solutions can also regularly create reports for your organization to analyze and used to devise a strategy for preventing future threats.

Other benefits of network security assessments include reducing the average time to repair problems and identifying performance issues that arise after regular business hours.

Speak With An Experienced Managed IT Services Provider

Reach out to the experts at SeaGlass Technology in New York for more information about the advantages of conducting a network security assessment. We are dedicated to providing both small and mid-sized businesses with innovative and efficient IT security solutions that are customized to meet their unique needs. Our staff has extensive knowledge of top original equipment manufacturers (OEMs) and independent software vendors (ISVs), and can thus properly determine which solutions are the best fit for each client.

SeaGlass Technology’s staff are certified in both network installation and monitoring services. We have experience in endpoint security, which means that all of your organization’s devices that have Internet connection capabilities will be fully protected. We can also generate a detailed report every time we perform network monitoring services so that you can be aware of any vulnerabilities that exist in your overall IT infrastructure. Call SeaGlass Technology today at (212) 886-0790 or schedule a consultation online or to learn more about our managed IT services.

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