Fintech Firm Rolls Out New Cybersecurity Platform
Entreda aims to help broker-dealers, RIAs and advisors, nearly 75% of whom have been the target of a cyberattack.
The new platform aims to safeguard independent broker-dealers and registered investment advisor firms from “the widest possible spectrum of digital threats” and to help them stay “multiple steps ahead of hackers, phishing scams and thieves,” according to the firm.
The firm, which introduced the technology at the recent BNY Mellon Albridge Forum, says nearly 75% of financial advisors have been the target of a cyberattack — with the average remediation cost per single lost or stolen record at $141 in direct expenses. Thus, financial firms “could easily face catastrophic million-dollar losses under a full-scale cyber breach,” says Entreda CEO Sid Yenamandra.
“We focus on customized education about the missteps that can compromise client data integrity, the regulatory standing of firms and advisors, and by extension, their continued business viability,” Yenamandra explained in a statement.
(Related: Complacency Is Weakest Cybersecurity Link: Dalbar)
Other industry players are pleased with the news.
“Cybersecurity failures can trigger draconian regulatory penalties, while potentially raising deeper issues of trust and dependability among advisors and their clients with respect to the firms they work with,” said Larry Roth, head of the consultancy RLR Strategic Partners and the former head of Cetera Financial Group, in a statement.
“Viewed in this context,” Roth said, “companies like Entreda are bringing a much-needed new approach to cybersecurity, by actively replacing patchwork solutions with a comprehensive and integrated approach, while using the latest advances in artificial intelligence to support surveillance and correction efforts, in lieu of having to hire an army of full-time compliance and IT staffers working together.”