Best Practices for Family Offices: Addressing Safety, Security, and Geopolitical Concerns

The family offices of today are facing unique and often underappreciated challenges in a world of complex and technology-assisted fraud.  

Despite not considering themselves prime targets, family offices are increasingly vulnerable, as they lack the extensive security infrastructure that large corporations possess. Without dedicated IT and security teams, they face threats ranging from phishing and internal fraud to property invasions. 

Threats to family offices also go beyond crime and fraud: Shifting geopolitical winds, which only appear to be getting more volatile as we head into 2025, can also greatly impact the security and efficacy of family offices around the globe.  

As a result, family offices must adopt best practices to protect against mounting security threats and concerns.  

Understanding the Risks to Family Offices 

Family offices manage billions in assets, making them attractive to cybercriminals. Why target, for example, a well-protected bank when many smaller, lightly secured family offices hold similar value? 

The numbers bear this out: A 2024 Deloitte report showed that 43% of family offices experienced a cyberattack in the past 12 to 24 months, with 25% encountering three or more attacks during this period. Among the most common threats are phishing attacks, malware, and social engineering tactics. Phishing—emails or messages that trick individuals into revealing sensitive information—remains the most prevalent type, affecting 93% of the attacked family offices, according to the Deloitte report. Malware attacks and social engineering, where attackers manipulate individuals into sharing confidential data, also pose significant risks. 

Beyond cyber threats, family offices face risks from imposters exploiting the sector's rapid growth. A report from the Australian Financial Review highlights how the expansion of family offices in regions like Singapore and Hong Kong has attracted individuals posing as legitimate professionals to "make a quick buck or hustle." Imposters can infiltrate networks, gain unauthorized access to sensitive information, and potentially defraud the family office and its clients. In addition, insider threats—people within the organization with access to finances and data—are a source of potential security failure as well.  

In addition, family offices are not immune from the security issues and financial concerns that appear in the wake of geopolitical tensions and conflicts. Shifts in policies, political instability, and sanctions can disrupt markets, limit regional access, and create regulatory challenges. For instance, investments in areas like the Middle East or Eastern Europe may encounter sudden drops in asset values, restrictions on movement, or even expropriation risks. Understanding these challenges helps family offices protect assets and adapt to shifting geopolitical landscapes. 

Best Practices for Family Office Security 

To protect sensitive data and assets, and to protect themselves from forces beyond their control, family offices should adopt these actionable best practices immediately if they are not already in use or in place: 

1. Conduct Comprehensive Risk Assessments 

Regular risk assessments are essential for a strong security infrastructure in family offices, covering physical security, cybersecurity, privacy, and personnel integrity. Third-party consultants can objectively identify vulnerabilities, protecting sensitive information and assets. Family offices should also perform thorough background checks and enforce strict screening for employees and partners to prevent insider threats. Proactive assessments enable family offices to address risks and adapt protocols to evolving security demands.  

2. Develop and Update Cybersecurity Plans 

Many family offices lack a structured response plan for cyber incidents. A 2024 survey by RSM revealed that 83% of single-family offices identified cyberattacks or data breaches as their most significant operational risk—and yet, many organizations seem content to maintain their current security measures. 

By developing and regularly updating a comprehensive cybersecurity plan, family offices can be better prepared to handle potential breaches. Cyber threats are constantly evolving, with attackers employing new methods and exploiting emerging vulnerabilities every year. For instance, the rise in sophisticated phishing schemes, ransomware-as-a-service, and social engineering attacks means that family offices must continuously adapt their strategies and defenses. 

3. Implement Advanced Security Measures 

Simple yet powerful tools like multi-factor authentication (MFA) are vital. Family offices should also conduct regular data backups and assess their cybersecurity maturity to identify vulnerabilities. A UBS survey of global family offices—each managing an average net worth of 2.6 billion—revealed that only 40% had adequate cybersecurity controls in place. Implementing measures like MFA, firewalls, and regular security audits can drastically reduce the risk of attacks. 

4. Provide Ongoing Education and Training 

Human error is a leading cause of security breaches, often due to unawareness of potential threats. Educating staff and family members to recognize suspicious communications, unusual requests, or unfamiliar visitors can greatly reduce risks. Training should address both digital and physical security, ensuring all parties know how to protect sensitive information and respond to threats. 

In 2020, "Shark Tank" star Barbara Corcoran fell victim to a phishing scam when her bookkeeper received a convincing email, appearing to be from Corcoran’s assistant, requesting a $400,000 wire transfer. The bookkeeper processed the transaction, resulting in major financial loss. This case highlights the importance of ongoing security training in family offices. 

 5. Diversify Across Regions and Sectors 

By spreading investments over a range of geographies and industries, family offices can reduce the impact of localized risks. This approach also allows them to pivot investments quickly if issues arise in one area. Many family offices are increasingly diversifying away from heavily regulated or politically sensitive regions, and instead, investing in sectors or regions with greater stability, such as North American technology and Southeast Asian emerging markets. Diversification not only buffers against instability but also provides agility to respond to changing geopolitical climates. 

Looking ahead 

Today’s world presents family offices with both new opportunities and risks. By adopting best practices—like robust cybersecurity plans, advanced security measures, regular risk assessments, and staff training—family offices can better protect assets and family privacy. Prioritizing security preserves wealth and trust, helping family offices avoid costly breaches and thrive in an increasingly interconnected world.