Family offices move significant sums with small teams, which makes them attractive to fraudsters. The most common attack is not technical at all: a convincing request, apparently from a principal, to move money urgently.

Deepfaked voice and video now make those requests far more believable. Controls must assume that a familiar voice is not proof of identity.

Strong defenses combine out-of-band verification for every payment change, credit and identity monitoring for principals and their families, and staff training grounded in real scenarios.

When an incident does occur, speed matters. A single accountable response team can freeze accounts, notify institutions, and contain the damage within hours rather than days.

Why wealthy families are targeted

Identity criminals favor targets with high credit limits, many accounts and complex finances where unusual activity may go unnoticed. Principals' personal details are often available through public filings, property records and past breaches, and family-office staff handle sensitive documents daily. Common outcomes include fraudulent credit lines, account takeovers, tax-refund fraud, and medical identity theft.

Preventive controls

Place credit freezes with Equifax, Experian and TransUnion for every principal and family member, including children; freezes are free in the United States. Request an IRS Identity Protection PIN for each taxpayer to block fraudulent returns, and review credit reports regularly through AnnualCreditReport.com.

Restrict who in the office can access identity documents, store them in encrypted systems rather than email, and shred physical copies. Enable account alerts with banks and card issuers, and use phishing-resistant multifactor authentication on all financial and email accounts.

A restoration plan prepared in advance

Decide now who will lead a response, which advisors and banks must be contacted, and where account inventories are kept. When fraud is discovered, file at IdentityTheft.gov for an official recovery plan, report to the relevant institutions, file a police report where needed, and document every call and letter. Preparation turns a chaotic weeks-long ordeal into a structured process.

If identity theft occurs

Report it at IdentityTheft.gov to receive a personalized recovery plan, place fraud alerts or freezes with the credit bureaus, and document every step for banks and advisors.

Frequently asked questions

Do credit freezes affect my credit score?
No. A freeze restricts access to your credit report for new accounts but does not change your score, and it can be lifted temporarily when needed.
What is an IRS Identity Protection PIN?
A six-digit number from the IRS that must be included on your tax return, preventing others from filing a fraudulent return using your Social Security number.
What should I do first if my identity is stolen?
Report it at IdentityTheft.gov, place fraud alerts or freezes with the credit bureaus, contact affected institutions, and keep detailed records.

Sources and further reading

External resources are provided for general information. This article is not legal, financial or security advice for your specific situation.