A private equity firm is an entity that manages investments. Not only does it makes investments for its clients, but it also serves as a means to acquire financial backing. If properly maintained and operated, private equity firms can generate a ton of profit on a daily basis. This is primarily one of the reasons why such firms are the primary target of hackers online.
As bad as this may sound, hacking a private equity firm is a big business for attackers. Most firms are prone to these cybersecurity threats as they have no time going about how well they are protected digitally. They devote most of their time and resources in doing financial transactions. Hedge fund cybersecurity, as Agio found out, can be vulnerable with ill-equipped operations and hacked within just a few minutes.
Before anyone begins asking “how to start a private equity firm,” they must read through Agio’s tips first.
Be Up-To-Date With Updates
Most systems being used by firms run on operating systems that are outdated. There is a reason why brands like Microsoft and Apple regularly update Windows and MacOS. Hackers devise new methods to penetrate a database and a way to counter this is by creating new security measures as well.
In the case of Agio’s experiment, the hole in the firm’s defenses was a printer running on an operating system that was several years old. It offered little to no resistance at all when attacked with modern cyberattacks.
Have Better Control Over The System
Another issue with most private equity firms is that their databases are not properly handled. The managers use the same password for every account and their networks are easily accessible by everyone. This leaves a lot of holes within their defenses. For private equity firms that are almost always online, this is bad news as hackers could cause all sorts of chaos simply by connecting to the local Wi-Fi within their property.
Agio recommends that private equity firms should not be too lenient when it comes to creating restrictions for their clients. They should set limitations of networks and devices like printers. This leaves them open for hacking by nearly just about anyone that steps through their doors.
Discuss Matters With The Pros
Perhaps the biggest takeaway from all of this is that professional cybersecurity firms like Agio are important. Without them, the firm wouldn’t even have noticed that they had so many flaws.
Running a private equity firm means having to invest in various services. If there is one service managers shouldn’t skip out on, that should be cybersecurity. There are countless digital threats that could endanger a firm and its clients and as such, firms that provide a bigger wall of protection are a must.
The real threat to private equity firms and other businesses lie within the digital world. From online scams to ransomware attacks, almost every entity is prone to attacks. However, with the help of brands like Agio, the digital world will become a safer space for a company to thrive in.