Financial Services Security Modernization
The Challenge
Heightened Regulatory Scrutiny
Heritage Capital faced intensifying regulatory oversight from the SEC, which had recently published enhanced cybersecurity guidance for registered investment advisors. The firm needed to demonstrate robust security controls during upcoming examinations or risk significant penalties and reputational damage.
Advanced Persistent Threats
As a firm managing significant wealth for high-net-worth clients, Heritage Capital had become a target for sophisticated threat actors, including nation-state affiliated groups. Their existing security tools were failing to detect advanced reconnaissance activities and social engineering attempts targeting their advisors.
Cloud Transformation Security Gaps
The firm had migrated many systems to cloud platforms but lacked proper cloud security controls and visibility. This created security blind spots and potential compliance issues, particularly around data sovereignty and access controls for sensitive client financial information.
Mobile Workforce Security
Heritage Capital's advisors frequently worked from client locations, home offices, and while traveling. This mobile workforce created security challenges as sensitive data was accessed from various networks and devices outside the firm's direct control.
Our Solution
Financial-Services Aligned Security Framework
We implemented a security framework specifically designed for financial services that addressed SEC requirements, FINRA guidance, and financial industry best practices. This ensured that security controls were appropriate for the specific regulatory and threat landscape faced by wealth management firms.
Advanced Endpoint Protection
We deployed next-generation endpoint security that combined behavioral AI, exploit prevention, and EDR (Endpoint Detection and Response) capabilities. This protected advisor workstations and mobile devices from sophisticated malware and fileless attacks common in financial services targeting.
Cloud Security Controls
We implemented a comprehensive cloud security architecture that included CASB (Cloud Access Security Broker) for SaaS applications, security posture management for infrastructure services, data loss prevention, and secure access service edge (SASE) for remote workers.
Identity and Access Management
We established a zero-trust identity framework with multi-factor authentication, privileged access management, and risk-based authentication policies. This ensured that access to client financial data was strictly controlled and verified, even for internal users.
Security Operations Center (SOC)
We implemented a managed detection and response (MDR) service tailored for financial services threats. This provided 24/7 monitoring, threat hunting, and incident response capabilities specifically tuned to detect threats targeting wealth management firms.
Our Approach
Risk-Based Implementation Approach
We began with a comprehensive risk assessment that identified the firm's crown jewel assets (primarily client financial data and investment strategies) and mapped threats specific to wealth management. This allowed us to prioritize security controls that addressed the most significant risks first.
Regulatory Alignment
Throughout the implementation, we maintained strict alignment with SEC cybersecurity guidance and examination priorities. We created a detailed compliance matrix that mapped each security control to specific regulatory requirements, ensuring comprehensive coverage of compliance obligations.
Advisor Experience Focus
Recognizing that security controls would fail if they impeded advisor productivity, we conducted extensive usability testing and workflow analysis to ensure security measures were minimally disruptive. Where friction was unavoidable, we provided clear explanations of security benefits to build advisor buy-in.
Security Culture Development
We implemented a comprehensive security awareness program tailored to wealth management scenarios. This included simulated phishing specific to financial services, executive-focused training on whaling attacks, and client communication guidance to help advisors discuss security measures with clients as a value proposition.
Phased Security Rollout
We deployed security controls in carefully sequenced phases to avoid operational disruption. Each phase included pilot testing with a subset of advisors before full deployment, allowing for refinement based on real-world feedback.
The Results
Regulatory Compliance Success
Heritage Capital successfully passed an SEC cybersecurity examination with zero findings related to their security program. The examination team specifically commended their comprehensive approach to security governance and the clear mapping between controls and regulatory requirements.
Threat Management Effectiveness
During the first year after implementation, the security controls successfully defended against over 17,500 attempted attacks, including several sophisticated spear-phishing campaigns targeting the firm's high-net-worth clients. Unlike peer firms who experienced breaches during this period, Heritage maintained an unblemished security record.
Operational Efficiency
Security incidents requiring manual investigation decreased by 76% due to improved automated controls and more accurate detection capabilities. This reduced security operations costs while allowing faster response to legitimate threats.
Business Advantages
The firm's enhanced security posture became a competitive advantage in client acquisition. Heritage Capital successfully won several large client accounts from competitors specifically due to their ability to demonstrate robust protection of sensitive financial information.
Financial Benefits
The firm's cyber insurance premiums decreased by 22% following their security improvements. Additionally, by avoiding breaches that affected competitors, they conservatively estimated savings of $1.2-1.8M in potential breach costs, regulatory penalties, and client retention issues.
Client Testimonial
"Voltek delivered a security program that balances rigorous protection with the practical realities of our business. Unlike other security firms we've worked with, they understood the unique regulatory landscape and client expectations in wealth management. Their implementation protected our clients' assets and data without creating friction for our advisors. We now have a competitive advantage when demonstrating our security capabilities to sophisticated clients."
James Harrington
Chief Operating Officer, Heritage Capital Partners