1. HOW WILL
CYBER THREATS
AFFECT THE FINANCIAL
ADVICE INDUSTRY

2. DISCLAIMER
This presentation is for adviser, dealer group and institution use only and must not be made available to any client.
This presentation is given by a representative of Colonial First State Investments Limited
AFS Licence , ABN (Colonial First State). Colonial First State Investments Limited ABN , AFS Licence (Colonial First State) is the issuer of super, pension and investment products.
This is general advice only. It is not legal advice. It does not take into account any person’s individual objectives, financial situation or needs. This presentation is based on Colonial First State’s understanding, current regulatory requirements and laws as at July 2017.
You should read the relevant Product Disclosure Statement (PDS) before making any recommendations. Clients should read the PDS before making an investment decision and consider talking to a financial adviser. FirstChoice PDSs can be obtained from colonialfirststate.com.au or by calling and FirstWrap PDSs are available from colonialfirststate.com.au or by calling
While all care has been taken in the preparation of this document (using sources believed to be reliable and accurate), to the maximum extent permitted by law, no person including Colonial First State or any member of the Commonwealth Bank Group of companies, accepts responsibility for any loss suffered by any person arising from reliance on this information.
This presentation cannot be used or copied in whole or part without our express written consent. © Colonial First State Investments Limited 2017.

3. AGENDA WHAT YOU NEED TO KNOW
WHAT YOU NEED TO DO TO HELP PROTECT YOUR ADVICE BUSINESS
STAYING SECURE WITH CFS

4. AGENDA WHAT YOU NEED TO KNOW
WHAT YOU NEED TO DO TO HELP PROTECT YOUR ADVICE BUSINESS
STAYING SECURE WITH CFS

5. FRAUD OR NOT?

6. PERCEPTION vs REALITY

7. AUSTRALIAN SUPERANNUATION LANDSCAPE
OVER $2.146 T IN SUPER
80% AUSTRALIAN BUSINESS HAVE NEVER CARRIED OUT A FRAUD RISK ASSESSMENT
75.9 MILLION OF REPORTED LOSSES IN FINANCIAL
PLANNING
19% OF AUSTRALIAN BUSINESS HAVE PROPER PASSWORD POLICIES
95% AUSTRALIANS WERE TARGETED BY A SCAMMER IN THE PAST 12 MONTHS
7% OF AUSTRALIAN BUSINESSES HAVE APPROPRIATE INTERNET POLICIES
51% OF ALL SMRs ARE ATTRIBUTED TO CYBER-ENABLED FRAUD
75% OF AUSTRALIAN SUPERANNUATION PROVIDERS REPORTED A CYBER INCIDENT TO EXECUTIVE MANAGEMENT IN 2016

8. “ ” CYBER-ENABLED FRAUD 2% 5% 21% 20% 1% 51%
SUSPICIOUS MATTER REPORTING BY SUSPECTED OFFENCE TYPE
Cyber-enabled fraud
Other fraud
Money laundering
Welfare fraud
Tax evasion
Terrorism financing
51%
20%
21% 5% 2% 1%
Financial planners are particularly vulnerable to cyber-enabled fraud attacks when acting as a gateway between customers and financial institutions or product issuers.
- AUSTRAC 10 January 2017 “ ”
Source: Financial Planning Risk Assessment – Austrac - 10 January 2017

9. Types of Cybercrime CYBER-ENABLED FRAUD ONLINE SCHEMES IDENTITY FRAUD
Schemes that seek to take advantage of individuals by presenting a solicitous offer (such as a free or cheap holiday) that turns out to be dishonest or non-existent
IDENTITY FRAUD
Illegally accessing an individual’s information and using this information to steal money or other benefits
BULLYING AND HARASSMENT
Using technology to conduct behaviour that is intended to make a person feel fearful, uncomfortable or offended
PHISHING
An pretending to be from a legitimate, trusted company (such as a bank or other service provider) that attempts to trick an individual into providing their personal or financial information
MALWARE AND RANSOMWARE
Malicious software designed to gain unauthorised access to an individual's computer system. Typically used to steal data, destroy data, or to prevent the user from being able to access their files, holding them to 'ransom'

10. INDICATORS OF CYBER-ENABLED FRAUD
Has different tone/language to customer’s usual communications
Has poor grammar, spelling mistakes or uncommon terminology
A CUSTOMER
Usually contacts by telephone, then suddenly makes contact by
Changes bank details soon after changing other details, such as contact address or phone number
Customer s express urgency:
Requests for the financial planner to complete application forms on the customer’s behalf, then to send back to customer for signing, and/or
requests to send funds overseas
THE CUSTOMER

11. CASE STUDY SCENARIO HOW THIS FRAUD WORKS
PREVENTING THIS TYPE OF CYBER FRAUD

12. WHAT YOU WHAT YOU AGENDA WHAT YOU NEED TO KNOW
WHAT YOU NEED TO DO TO HELP PROTECT YOUR ADVICE BUSINESS
STAYING SECURE WITH CFS

13. WHAT ACTIONS CAN YOU TAKE?
DON'T DIVULGE PERSONAL INFORMATION WHEN REQUESTED VIA
INVEST IN BASIC ANTIVIRUS PROTECTION
BE VIGILANT
KEEP UP-TO-DATE
CHOOSE A STRONG PASSWORD
RESTRICT USE OF PUBLIC Wi-Fi TO WEB BROWSING
REGULARLY UPDATE SOFTWARE
IF IN DOUBT, CALL THE CLIENT
GET YOUR BUSINESS HYGIENE RIGHT
BEWARE OF S ASKING FOR FINANCIAL INFORMATION
KNOW YOUR CLIENT

14. commbank.com.au/personal/support/security
CLIENTS HAVE A ROLE TO PLAY
SECURITY DEPENDS ON YOUR CLIENTS TOO
Be aware of cyber security
Back-up regularly
Keep your anti-virus software current and consider using OpenDNS at home
Keep software up-to-date
Don’t re-use passwords
Protect your account
commbank.com.au/personal/support/security

15. AGENDA WHAT YOU NEED TO KNOW
WHAT YOU NEED TO DO TO HELP PROTECT YOUR ADVICE BUSINESS
STAYING SECURE WITH CFS

16. STAY SECURE WITH CFS Continuous improvement
Data analytics - transaction monitoring capability
Dedicated CFS Operational Security Team
Encryption technology
Proof of identity screening
Ongoing monitoring and blocking suspicious matters
Masking certain information when we communicate with you

17. DEDICATED FOCUS It’s now part of how we operate… all day, everyday
5K+ MONTHLY
DATA ANALYTICS TRANSACTION MONITORING CAPABILITY
DEDICATED CFS OPERATIONAL SECURITY TEAM
CONTINUOUS PROCESS IMPROVEMENT

18. QUESTIONS?

19. Tony Powell 0417 564 556• tony.powell@colonialfirststate.com.au