Family Governance in the Age of Cyber Threats: Keeping Next-Gen and Aging Parents Safe Online

For families managing significant wealth, cybersecurity is increasingly a family governance issue. 

Financial accounts, personal information, social media profiles, email, smart devices, and digital assets create a broad digital footprint—and every family member can interact with that footprint differently. Younger generations may share more information online, while aging parents can face increasingly sophisticated fraud attempts. Protecting the family, therefore, requires more than strong passwords. It requires shared expectations, safeguards, and a plan for responding when something goes wrong. 

The financial stakes can be significant. In 2025, Americans over age 60 reported more than $7.7 billion in losses from internet crime, according to the FBI, with phishing and spoofing generating more complaints among older victims than any other fraud category. 1,6 

Why Should Cybersecurity Be Part of Family Governance? 

Family governance establishes how a family communicates, makes decisions, and manages responsibilities around shared wealth. Cybersecurity can become part of that same framework. 

Families can establish clear protocols for financial requests, account access, information sharing, and unusual communications. For example, a family might agree that no one will transfer money based solely on an unexpected text, email, or phone call, regardless of how convincing it appears. 

That verification step has become increasingly important as artificial intelligence makes impersonation more sophisticated. The Federal Trade Commission warns that scammers can use short audio clips obtained online to clone a loved one’s voice and manufacture convincing family emergencies. 2 

What Cybersecurity Practices Can Families Put in Place? 

Effective family cybersecurity does not have to be overly technical. A few shared practices can create meaningful layers of protection: 

• Use multifactor authentication. MFA adds another verification step beyond a password, making unauthorized account access more difficult. 3 

• Strengthen password practices. Use long, unique passwords and a reputable password manager rather than reusing credentials across accounts. 4 

• Create a family verification protocol. Establish a separate way to confirm urgent requests involving money or sensitive information, such as calling a known number or contacting another family member. 

• Limit unnecessary information sharing. Details posted publicly can potentially give scammers information that makes impersonation attempts more convincing. 5 

• Discuss cybersecurity before a crisis. Determine who should be contacted if an account is compromised, fraud is suspected, or an aging family member needs help managing digital access. 

How Does Cybersecurity Fit into a Broader Wealth Plan? 

Cybersecurity rarely exists in isolation. Account access may interact with estate planning. Fraud prevention can affect cash management. Aging parents may require additional oversight, while younger generations may need education before assuming greater financial responsibility. 

That interconnectedness is where thoughtful planning matters. 

At Sequoia Financial Group, a BUILT FOR YOU experience means helping families manage complexity around their specific circumstances. By considering cybersecurity alongside investments, estate planning, risk management, and multigenerational decision-making, families can create a more coordinated framework for protecting not only their wealth but also the people responsible for stewarding it. 

 

 

 

Sources 

1. Federal Bureau of Investigation—FBI Philadelphia Highlights World Elder Abuse Awareness Day (2026)
   https://www.fbi.gov/contact-us/field-offices/philadelphia/news/fbi-philadelphia-highlights-world-elder-abuse-awareness-day-2026  
2. Federal Trade Commission — “Scammers use AI to enhance their family emergency schemes”
   https://consumer.ftc.gov/consumer-alerts/2023/03/scammers-use-ai-enhance-their-family-emergency-schemes
3. Federal Bureau of Investigation— Scammers Target Older Adult Victims
   https://www.fbi.gov/news/stories/scammers-target-older-adult-victims  
4. National Institute of Standards and Technology — “How Do I Create a Good Password?”
   https://www.nist.gov/cybersecurity-and-privacy/how-do-i-create-good-password
5. Federal Trade Commission — “Scammers Use Fake Emergencies T oSteal Your Money”
   https://consumer.ftc.gov/articles/scammers-use-fake-emergencies-steal-your-money 
6. Federal Bureau of Investigation—Internet Crime Report 2025, Internet Crime Complaint Center
   2025_IC3Report.pdf