CLOSE X
RSS Feed LinkedIn Instagram Twitter Facebook
Search:
FMG Law Blog Line

FINRA Issues Guidance on Remote Work Including Continued Warning for Cyber Threats

Posted on: June 15th, 2020

By: Kathleen Cusack and Kirsten Patzer

Although all 50 states have begun the process of reopening, business spaces have not yet returned to full capacity and many people continue to work remotely.  On May 28, 2020, the Financial Industry Regulatory Authority (FINRA) issued new guidance for working from home based on surveys of financial firms. 

One such piece of guidance is a continued reminder to be vigilant with confidentiality requirements and cybersecurity concerns.  FINRA suggests reminding associated persons of confidentiality requirements, including maintaining a private workspace while working from home and taking extra precautions when working near family or friends.  FINRA also recommends that financial businesses remind and train staff about cybersecurity vulnerabilities and potential fraud risks. 

Since 2015, FINRA has released multiple reports and notices aimed at informing financial professionals about cyber risks and best practices.  The mass shift to remote work has not only resulted in a dramatic increase in the use of personal devices for the completion of work, but has also prompted a sizable increase in cyber threats to individuals and businesses.  According to a study discussed in Forbes, cyber threats increased by about a third between January and March of this year. 

One of the most common types of cyber scams is phishing.  Phishing schemes attempt to entice users to provide sensitive information to people pretending to be a trustworthy person.  To protect against phishing scams, FINRA recommends that businesses employ a combination of technological tools and regular training for employees to identify scams. Financial advisors and other associated persons are reminded to not accept trade instructions, withdrawal requests, or third-party transfers via electronic mail. If such a request is received, the advisor should contact their client via telephone to verify and confirm the instruction.   

FINRA has also cautioned against increased cybersecurity risks with the use of mobile devices.  FINRA warns that compared to in-office devices, mobile devices face a higher risk of theft or exposure to the installation of malicious applications.  

If you have questions or would like more information, please contact Kirsten Patzer at [email protected] or Kathleen Cusack at [email protected]

Additional Information:

FMG has formed a Coronavirus Task Force to provide up-to-the-minute information, strategic advice, and practical solutions for our clients. Our group is an interdisciplinary team of attorneys who can address the multitude of legal issues arising out of the coronavirus pandemic, including issues related to Healthcare, Product Liability, Tort Liability, Data Privacy, and Cyber and Local Governments. For more information about the Task Force, click here.

You can also contact your FMG relationship partner or email the team with any questions at [email protected].

**DISCLAIMER: The attorneys at Freeman Mathis & Gary, LLP (“FMG”) have been working hard to produce educational content to address issues arising from the concern over COVID-19. The webinars and our written material have produced many questions. Some we have been able to answer, but many we cannot without a specific legal engagement. We can only give legal advice to clients.  Please be aware that your attendance at one of our webinars or receipt of our written material does not establish an attorney-client relationship between you and FMG. An attorney-client relationship will not exist unless and until an FMG partner expressly and explicitly states IN WRITING that FMG will undertake an attorney-client relationship with you, after ascertaining that the firm does not have any legal conflicts of interest.  As a result, you should not transmit any personal or confidential information to FMG unless we have entered into a formal written agreement with you. We will continue to produce education content for the public, but we must point out that none of our webinars, articles, blog posts, or other similar material constitutes legal advice, does not create an attorney client relationship and you cannot rely on it as such. We hope you will continue to take advantage of the conferences and materials that may pertain to your work or interests.**

Tags: , , ,

Comments are closed.