Cyber risk: are your processes protected?

AFG 21 April 2026, 11:09:43 am AWST

For years, brokers have been focused on compliance, and rightly so.

But quietly, another risk has been growing in the background. One that is less visible, harder to control, and often far more costly when something goes wrong.

Cybersecurity.

The reality is that brokers are now handling more client data, across more systems, and more communication channels than ever before. And in many cases, the biggest risks are not coming from sophisticated attacks, but from everyday processes that have become normal.

The risk is more about human error than most would realise.

The following two case examples illustrate how easily everyday mistakes can lead to serious financial and operational consequences.

Case 1:

Take a recent example from a mid-sized brokerage.

A broker accidentally sent an email attachment containing multiple clients’ application data to the wrong recipient. It was a simple mistake; one most brokers could imagine happening on a busy day. The outcome was anything but simple.

Case 2:

A broker received what appeared to be a legitimate email requesting updated settlement details.

The email looked real. It directed them to a familiar-looking portal. Credentials were entered, and funds were transferred.

This is known as business email compromise, and it is becoming increasingly common in financial services.

Where most broker processes are exposed

Across both examples, the pattern is consistent:

Sensitive data is being shared via email
Documents are stored across multiple locations
Communication happens outside of secure environments
Processes rely on memory and manual checks

These are not edge cases. They are everyday possibilities.

“A typical broker’s day-to-day work is very busy, with many emails and electronic messages being sent and received at high pace. When you combine those elements with the breadth of personal information involved in each loan application, and the ill-intent of cyber criminals looking to capitalise on lapses of judgment, there is significant potential for things to go wrong.”

Richard Brown

AFG Senior Manager – Risk

Reducing risk without adding complexity

Cyber insurance can provide an additional layer of protection if something does go wrong.

AFG refers brokers to cyber insurance provider Coalition via our insurance broker, JMD Ross, as an option for cyber liability insurance.

Coalition’s Active Insurance provides cover for risks including data breaches, ransomware and business interruption, alongside 24/7 support and risk management tools.

While cyber liability insurance is not currently compulsory, it can help reduce the financial and operational impact of a cyber incident and support your business through the response and recovery process.