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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.
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].
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