Cyber-attacks strike at the core of financial services: client trust.
A single breach can trigger investor withdrawals, erode assets under management, and send firms into crisis. Nearly nine in ten executives admit a successful attack would provoke client flight and investor panic.
In an industry built on confidence and trust, cybersecurity has become inseparable from business relationships and survival.
To better understand how financial firms are addressing cybersecurity pressures, Omega Systems surveyed more than 300 financial leaders across family offices, registered investment advisers (RIAs), wealth managers, hedge funds, private equity firms, and other investment management firms. The survey examined how the market is safeguarding investor trust, where weaknesses like outdated infrastructure and limited testing leave firms exposed, and how internal-only versus outsourced IT models influence cyber resilience.
The research reveals a sector under constant pressure. Ninety-three percent (93%) of firms experienced at least one cyber incident in the past year, and nearly one in five faced threats numbered in the dozens. While cybersecurity budgets are rising, complex technology and operational challenges continue to plague financial firms and risk leaving protections out of step with the scale of today’s threats.
This report unpacks where financial services firms are excelling, where they are exposed, and what must change to stay ahead of increasingly sophisticated attacks.
About This Study
August 2025 online survey of 300+ U.S. financial services leaders — including CEOs, CIOs, CISOs, CFOs, COOs, and other senior executives at family offices, RIAs, wealth management firms, hedge funds, private equity firms, and investment advisory organizations managing less than $1 billion to more than $10 billion in assets under management (AUM).
Concerning Stat:
Investor trust may be the industry's most vulnerable asset. Nearly nine out of ten (88%) financial services executives believe a successful cyberattack would trigger investor withdrawals or loss of assets under management.
Investor Confidence is on the Line
Trust is currency in financial services. When trust is broken, clients don’t wait for explanations. They move their money.
Eighty-eight percent (88%) of executives surveyed by Omega Systems acknowledged that a successful cybersecurity attack would trigger withdrawals, raise investor concern, or lead to direct loss of assets. That concern is even more pronounced among CFOs, with 94% saying they would expect client departures in the wake of a major incident.
The anticipated damage of a cyber-attack extends far beyond lost assets. Additional concerns include prolonged downtime that disrupts services, theft of sensitive client data, exposure to fraud, and reputational harm that lingers long after systems are restored.
Emerging threats such as deepfakes reinforce this vulnerability. Sixty-one percent (61%) of executives are concerned about impersonation campaigns targeting their firms. While most report having taken steps to prepare, the high level of concern suggests many remain uncertain whether those defenses are strong enough to withstand an actual attack.
Top 5 Negative Cyber-attack Impacts:
Operational Disruption
operational downtime or business disruption
Data Theft & Exposure
investor/client data exposure or theft
Financial Fraud/Loss
financial theft, fraud or account compromise
Reputational Damage
loss of investor/client trust or damage to firm’s reputation
Insurance Consequences
increased insurance premiums or denial of coverage
The findings reveal a growing disconnect between perceived preparedness and the realities of today's threat landscape.
That uncertainty extends inside organizations as well. While most leaders say they are confident employees could recognize an AI-driven phishing or social engineering threat, nearly a third admit they are not fully confident, and only 17% indicated that security awareness training will be a priority in the coming year.
In the absence of stronger readiness, almost nine in ten financial firms now carry cyber insurance coverage as a safety net.
While cyber insurance is prudent, it has its limits. At best, it cushions financial losses — but it cannot prevent withdrawals or restore reputation once trust has been compromised.
Despite pervasive threats across the industry, only 17% of financial executives indicated that security awareness training will be a priority in the coming year.
Family Office Perspective
The research shows that family offices, which manage concentrated assets for high-net-worth clients, are consistently less prepared than their peers:
are concerned about deepfakes or other impersonation threats
say a successful attack would trigger withdrawals or investor panic
believe they are targeted more often because they manage high-networth assets
acknowledge reliance on legacy systems would likely hinder breach recovery
Compared to other financial services firms, family offices surveyed:
🔹 Showed lower than average concern for cybersecurity as a business challenge
🔹 Admit the least amount of confidence that their employees can detect and prevent AI-powered cyber-attacks (60% compared to 69% average and 78% among registered investment advisers)
🔹 Demonstrated the highest level of concern about outdated infrastructure and their ability to recover from a data breach (67% compared to 50% average)
Learn how family offices are reducing risk, improving resilience, and preparing for modern cyber threats.
Cyber Threats Have Become a Routine Part of Doing Business
Leadership and IT concerns are not theoretical. Cyber incidents have become routine across financial services. Nearly all firms (93%) reported at least one known attack in the past year, and 18% faced more than 25.
When asked about the types of attacks they feel least prepared to recover from, leaders pointed to a wide range of threats.
The variety of attack types underscores that firms cannot focus on a single threat vector — resilience requires preparation on multiple fronts.
Response times are also troubling. More than a third of firms said it would take a week or longer to detect and contain a breach, and 6% admitted it could stretch into a month or longer. In a sector where capital and confidence can shift in hours — and money is expected to move instantly — failure to respond swiftly and effectively magnifies the impact.
More than one third of firms say it would take a week or longer to contain a breach.
Most alarming attack vectors:
Furthermore, cyber assessments and vulnerability testing reveal a clear divide in defense maturity.
While some firms have adopted continuous or monthly assessments to strengthen resilience, 31% still rely on quarterly or less frequent reviews, which create extended windows of vulnerability that attackers can exploit.
The good news is most financial firms are not ignoring the problem. In response to market volatility, 78% of firms increased cybersecurity spending in the past year, with firms in the $101-500M range showing the greatest proclivity (88% increased spending in the last 12 months).
Among the sub-verticals, RIAs were least likely to increase security budgets (only 57% did), and, in fact, 11% of RIAs said they significantly
decreased their IT spend last year.
Capital and confidence can shift in hours and money is expected to move instantly — failure to respond swiftly and effectively magnifies the impact.
Breach detection and containment:
need a week or longer to contain a breach
need a month or longer to contain a breach
Infrastructure Challenges and The Cost of Standing Still
The lack of technology modernization remains a challenge across the financial services sector. The fact that half of firms plan to prioritize cloud adoption in 2026 is telling: it highlights how many are likely still relying on outdated systems today, even though cloud migration offers stronger built-in security and resilience.
More than half (57%) are not monitoring threats in real time, which limits their ability to detect and contain attacks before they escalate.
Outsourcing is another area where most financial services firms lag. Sixty-five percent (65%) continue to manage IT and security entirely in-house. Only 16% are fully outsourcing IT and cybersecurity to an MSP/MSSP, and 17% use a co-managed model.
Family offices are the least likely to embrace a fully outsourced model, with only eight percent (8%) using an external provider for day-to-day cybersecurity management.
More than half of firms (57%) lack real-time threat monitoring, making cyberattacks harder to detect and contain before they escalate.
Legacy
Infrastructure
50% prioritizing cloud adoption in 2026
Limited
Visibility
57% lack real-time threat monitoring
Internal-Only
IT Models
65% manage IT and security entirely in-house
Family Office
Security Gap
Only 8% of family offices outsource day-to-day cybersecurity
Recovery Blind Spots
The ability to respond and recover quickly after a disruption is essential to limit financial, reputational, and regulatory fallout. Despite this, many executives acknowledge their firms carry significant weaknesses that could slow recovery.
When asked about their most pressing IT and security challenges for 2025, executives pointed to gaps in employee preparedness and expertise as major concerns.
One in five (21%) cited a lack of employee security awareness as a significant challenge, while one in three (34%) said they lack the internal resources or expertise to manage complex IT and security controls.
Outdated systems, untested processes, and limited cybersecurity expertise leave firms vulnerable at the exact moment when clients and investors are most alert.
Key Factors Slowing Recovery:
The glaring need for professional support (MSSPs) in the financial services industry
MSSPs deliver the skilled resources and advanced security infrastructure needed to reduce the operational, financial, regulatory, and reputational risks associated with cyberattacks through proactive threat detection, rapid incident response, and strategic cybersecurity planning. By strengthening cyber resilience, MSSPs help financial services firms protect investor trust and respond more effectively to evolving threats.
Furthermore, MSSPs can help alleviate the compliance burden by automating core security functions and standardizing security monitoring and reporting, enabling firms to more effectively address SEC, FINRA, and other regulatory requirements while adapting more quickly to change.
Partnering for Cyber Resilience: The MSSP Difference
The survey shows a clear divide between firms that rely on internal IT teams with shared resources and those that extend their capabilities with an MSSP (fully outsourced or co-managed).
Key differences include:
🔹 Threat exposure and readiness: Internal shared-resource firms are 56% more likely to face 25+ attacks annually and are far less confident in spotting advanced threats — only 10% are “very confident” their teams can detect AI-driven attacks, compared with 30% of MSSPsupported firms.
🔹 Containment speed: Internal shared-resource firms are more likely to face delays, with 25% requiring two to four weeks to contain a breach compared with just 16% of MSSP-supported firms.
🔹 Recovery posture: MSSP-supported firms are more likely to report mature response capabilities (14% vs. 8% internal) and less likely to say they skip vulnerability assessments (20% vs. 30% internal).
THE BOTTOM LINE
MSSP-backed organizations deliver faster containment, stronger recovery posture, and greater readiness against evolving risks — advantages that directly safeguard capital and preserve client trust.
Looking Ahead: 2026 Financial Services IT Priorities
As the financial services industry looks ahead amidst continued economic uncertainty and a deeply complex cybersecurity threat landscape, operational priorities and budgets will need to shift to ensure firms can withstand repeated attacks and mitigate business and financial risk. In 2026, firms plan to shore up defenses and invest or upgrade in IT and security areas such as:
🔹 Cloud adoption, migration and security (51%)
🔹 Advanced threat detection and response, such as
🔹 MDR, EDR, SOC (50%)
🔹 IT infrastructure modernization (41%)
🔹 Multi-factor authentication and identity access management controls (39%)
🔹 Network and perimeter security (37%)
🔹 Backup and disaster recovery solutions (36%)
Firms currently outsourcing IT and security or considering doing so in 2026 expect to look for partners that can deliver advanced threat protection capabilities, round-the-clock IT help desk support and deep knowledge of the financial services industry to support their ongoing operations and instill greater confidence in their risk management practices.
Security Investments In 2026
Cloud adoption, migration, and security
Advanced threat detection and response (MDR, EDR, SOC)
IT infrastructure modernization
MFA and identity access management controls
Network and perimeter security
Backup and disaster recovery
Call to Action: Modernize security to protect investor trust, assets, and compliance.
Omega Systems’ 2025 Financial Services Cyber Resilience Report highlights key priorities for financial services leaders seeking to improve cyber resilience, strengthen compliance, and reduce operational risk.
Investor trust increasingly depends on the resilience of digital systems. As financial firms become more reliant on cloud platforms, client-facing applications, and interconnected technologies, a cyberattack can quickly disrupt operations, impact client confidence, and attract regulatory scrutiny. Financial services leaders should view cybersecurity as a business imperative, ensuring critical systems remain secure, accessible, and resilient at all times.
In a heavy regulated industry like healthcare, compliance never gets easier. Regulatory standards will continue to evolve, and organizations must be prepared to implement IT security controls that prioritize data privacy and operational resilience. Healthcare leaders should look to modernize technology stacks, allowing them to stay agile in the face of changing requirements.
Investor trust increasingly depends on the resilience of digital systems. As financial firms become more reliant on cloud platforms, client-facing applications, and interconnected technologies, a cyberattack can quickly disrupt operations, impact client confidence, and attract regulatory scrutiny. Financial services leaders should view cybersecurity as a business imperative, ensuring critical systems remain secure, accessible, and resilient at all times.
How to Boost Cyber Resilience and Protect Investor Trust
One theme runs through every finding: in financial services, cybersecurity is business security. A single breach can unravel years of client relationships, erode assets under management overnight, and leave reputations permanently scarred.
The research makes clear that cyber resilience requires more than technology alone. Firms must continuously evaluate risk, strengthen operational readiness, and ensure they have the expertise and resources necessary to detect, contain, and recover from modern threats.
As attacks become more sophisticated and investor expectations continue to rise, cybersecurity can no longer be viewed as a back-office function. It is a core component of business continuity, client confidence, and long-term growth.
Cyber insurance can soften financial loss, but it cannot stop withdrawals, repair relationships, or restore confidence. True cyber resilience protects investor trust.
The message is clear: the financial services market is under attack, and investor trust is on the line every day. Modernization, vigilance, and partnership are no longer optional. They are the new survival imperatives.
About Omega Systems
As a multi-award-winning MSP and MSSP, Omega Systems is passionate about delivering the security and compliance expertise today’s businesses need alongside the responsive and reliable managed IT support they deserve. Omega’s service-driven IT solutions portfolio includes 24×7 managed IT support, cybersecurity risk management, managed detection & response (MDR), backup and disaster recovery, multi-cloud connectivity, and much more. Omega Systems supports customers across the U.S., with deep expertise in financial services and other regulated industries.
Survey Methodology
Findings are based on an Omega Systems survey conducted in August 2025 of more than 300 U.S. financial services executives, including CEOs, CIOs, CISOs, CFOs, COOs, and other senior leaders. Respondents represented firms operating in the financial services sector including family offices, RIAs, wealth management firms, hedge funds, private equity, and investment advisory firms, with assets under management (AUM) ranging from less than $1 billion to more than $10 billion.
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