The Ultimate Checklist: Cybersecurity for Financial Firms and Advisors in 2025

Cybersecurity for Financial Firms must evolve at the same pace as the threats. Wealth managers, registered investment advisors (RIAs), and financial firms must implement strong cybersecurity measures to protect client data, prevent fraud, and comply with evolving regulations. A single security breach can lead to financial losses, reputational damage, and legal consequences. To help financial professionals strengthen their cybersecurity framework, we’ve created this comprehensive cybersecurity checklist tailored for financial advisors and wealth managers in 2025.

Cybersecurity for Financial Firms – First Steps: Conduct a Risk Assessment and Develop a Cybersecurity Strategy

Before implementing new policies or procedures, perform a financial IT risk management assessment to identify vulnerabilities and potential security threats. Understanding the lay of the land—where your financial firm currently stands—will allow you to develop a cybersecurity strategy that aligns with your business goals and compliance requirements. Then, you will have a framework for regularly updating security policies and procedures to address new cyber threats and industry regulations.

Ensure Compliance with Regulatory Standards

Adhering to industry regulations such as those of the SEC, FINRA, GDPR, PCI DSS, ISO 27001, and SOC 2 is essential. CloudScale365 provides you with a dedicated compliance team to monitor evolving cybersecurity laws and standards. We also conduct regular cybersecurity audits to ensure compliance with industry best practices in the financial sector.

6 Important Security Compliance Rules to Follow

1. SEC & FINRA Compliance – Ensure adherence to cybersecurity guidelines set by the Securities and Exchange Commission (SEC) and Financial Industry Regulatory Authority (FINRA) to protect investor data and prevent fraud.
2. GDPR (General Data Protection Regulation) – If handling European clients, comply with GDPR to ensure proper data protection, consent management, and breach notification procedures.
3. PCI DSS (Payment Card Industry Data Security Standard) – If processing payments, follow PCI DSS requirements to safeguard payment card information and prevent data breaches.
4. ISO 27001 Certification – Implement an information security management system (ISMS) aligned with ISO 27001 standards to establish a structured cybersecurity framework.
5. SOC 2 Compliance – For firms using cloud-based platforms, SOC 2 ensures secure handling of financial data and client information.
6. Data Encryption & Privacy Regulations – Encrypt sensitive client financial data and adhere to regional privacy laws to prevent unauthorized access and maintain trust.

 

Data Security for Finance Professionals and Encryption Measures

We recommend encrypting all sensitive client financial data in transit and at rest to prevent unauthorized access. Deploying multi-factor authentication (MFA) ensures secure access to client accounts and financial platforms, while tokenization will mask sensitive information and reduce the risk of data breaches. Finally, you should regularly back up critical client data and store it securely offsite for disaster recovery.

Strengthen Network Security and Endpoint Protection

The best practice is implementing firewalls, intrusion detection systems (IDS), and intrusion prevention systems (IPS) to filter malicious traffic targeting financial systems. You should also ensure endpoint protection on all advisor and employee devices, including updated security software and monitoring tools. We advise adopting a zero-trust security model, which requires continuous verification for users and devices accessing financial data.

Perform Penetration Testing and Continuous Threat Monitoring

Penetration testing (pen testing) is a simulated cyberattack conducted to evaluate the security of a system, network, or application. The goal is to identify vulnerabilities that attackers could exploit and assess the effectiveness of security controls.

• Conduct penetration testing on wealth management platforms to identify security weaknesses, such as software flaws, misconfigurations, or weak passwords.
• Hire third-party security firms for red-team exercises to simulate real-world cyberattacks targeting financial advisors.
• Deploy real-time threat monitoring tools and establish an incident response team to handle cyber threats.

Check out our Free External Penetration Test offer here.

Cyber Risk Management for Financial Firms: Educate Employees with Cybersecurity Awareness Training

CloudScale365 recommends that financial advisors and staff receive regular cybersecurity training. This training should include periodic detection of phishing, malware, and social engineering attacks. It is also important to establish clear protocols for reporting suspicious activity to IT security teams and periodically conduct simulated cyberattack exercises to assess employee readiness and improve response strategies.

Implement Vendor Risk Management Policies

It is critical to assess third-party vendors and technology providers for cybersecurity compliance before integrating their systems. To mitigate third-party risks, enforce strict security guidelines, continuously monitor vendor security practices, and require vendors to adhere to financial industry cybersecurity standards.

Develop an Incident Response and Disaster Recovery Plan

One useful protocol is a detailed incident response plan outlining roles, responsibilities, and response procedures specific to financial advisors. Disaster recovery drills to test system resilience and minimize downtime and secure offsite and cloud-based backups to ensure quick recovery after a cyber incident are also essential.

Secure Cloud Infrastructure and Remote Work Policies

Financial organizations should implement robust security measures for cloud-based financial advisory applications to protect sensitive data. Requiring VPN use and endpoint security solutions for remote advisors accessing client information and enforcing role-based access controls (RBAC) to restrict access based on user responsibilities and client data sensitivity will also mitigate risk.

How Managed Service Providers (MSPs) Can Help

Managed Service Providers (MSPs) such as CloudScale365 play a crucial role in enhancing cybersecurity for financial advisors and wealth managers by offering comprehensive security and compliance solutions tailored to their needs. We provide Mobile Device Management (MDM) to secure advisors’ smartphones, tablets, and laptops, ensuring client data remains protected even on the go. We also implement advanced endpoint security, safeguarding financial professionals from malware, phishing attacks, and unauthorized access. CloudScale365 helps firms stay compliant with evolving regulations by offering automated compliance monitoring and reporting, reducing the risk of costly penalties. Additionally, we provide continuous threat monitoring and incident response services, allowing advisors to focus on their clients while security experts handle potential cyber threats. By partnering with CloudScale365, financial professionals gain access to cutting-edge cybersecurity tools and proactive protection against the ever-changing threat landscape.

By following this cybersecurity checklist for financial advisors and wealth managers, professionals can significantly strengthen their security posture, protect client assets, and maintain compliance with regulatory standards. As cyber threats continue to evolve, maintaining a proactive cybersecurity strategy will help financial advisors build trust with clients and stay one step ahead of cybercriminals. Implementing these best practices will minimize risks, enhance data security, and ensure regulatory compliance in 2025 and beyond.