Q3 2024 Wealth Strategy Insights
by Rus Miller, Director of Family Office Services
Why You Need a Social Media Policy
As a former Single Family Office Executive, I’ve had the privilege of experiencing life’s many milestones alongside the families I’ve served. From welcoming new family members to organizing funerals and everything in between—marriages, divorces, and even handling crises, I’ve experienced it all. But amidst those responsibilities, there’s one moment that stands out as the worst: hearing the news that a family’s child has been kidnapped.
You might think such events only happen in action movies or some far-off land, but kidnapping for ransom is a genuine threat. And if you have considerable wealth, you and your loved ones could be a target.
Personal security isn't just for high-profile celebrities; it's something every UHNW family must prioritize. As your wealth grows, so does the likelihood of becoming a target. And in today’s digital age, criminals have more access to information than ever, thanks to social media.
Criminals are becoming increasingly bold, and one of the most overlooked vulnerabilities for wealthy families is the information they willingly share online. Social media platforms like Instagram, Facebook, TikTok, and Snapchat make it easy to share your life, but they also open the door to significant risks.
The Risks of Social Media Platforms
1. Instagram: The Dangers of Location Sharing Instagram is widely used, but its location-sharing features pose a serious risk. Posting photos or stories can reveal your exact whereabouts, whether during a vacation or a routine activity. Criminals can use this information to track your movements and target your home. Real-World Example: Imagine a family member posting about their upcoming two-week vacation on Instagram. They share beautiful photos from their destination, and in the caption, they mention being away for two weeks. While this may seem harmless, it’s a security nightmare. Criminals monitoring the account now know the family’s home will be vacant for an extended period. That information provides ample opportunity for a break-in, as the criminals know the family won’t return for days or weeks. Instagram’s "Stories" feature, which many assume is temporary, also poses risks. While stories disappear after 24 hours, they can be screenshotted and stored indefinitely. Direct messages (DMs) on Instagram are not entirely secure, leaving private conversations vulnerable to security breaches.
2. Facebook: Insecure Communication and Data Risks Despite its popularity, Facebook’s data privacy issues are concerning, too. Many family members share life updates, business milestones, and personal events on Facebook, and the platform retains a vast amount of personal data even with privacy settings available. Facebook’s terms allow data to be accessed or sold to third parties, creating a significant risk for identity theft or fraud. This is a particular concern for UHNW families. Any personal information shared on Facebook could be exploited. Moreover, Facebook is not a secure communications platform and private messages can be intercepted or hacked.
3. TikTok: The Permanence of Content TikTok, a favorite among younger generations, comes with its own set of risks. Although the platform is designed for short, entertaining videos, content shared on TikTok isn’t as temporary as it appears. Even if you delete a video, TikTok retains the data on its servers, and viral content can spread to other platforms, making it nearly impossible to erase. For UHNW families, this can expose private details about their lifestyle, homes, or preferences, creating vulnerabilities. Additionally, TikTok’s extensive data collection, including location tracking, can inadvertently reveal sensitive information about where family members live or travel.
4. Snapchat: The Illusion of Disappearing Messages Snapchat’s appeal lies in its disappearing messages, but that sense of privacy is misleading. Screenshots can easily be taken, and content can be captured using third-party apps. Once a snap is sent, it’s out of your control, and Snapchat retains some data, which can be exposed in the event of a breach. Snapchat’s real-time location-sharing feature, “Snap Map,” can broadcast a user’s exact location if not turned off, posing an immediate physical security threat. For UHNW families, this can lead to stalking or even more dangerous situations. Additionally, Snapchat’s DMs are not encrypted, making private conversations vulnerable to interception.
Reputational and Physical Risks of Social Media
For UHNW families, reputational damage can be as costly as financial or physical harm. A single ill-considered post can have long-lasting consequences, damaging family businesses, public relations efforts, or philanthropic work. Whether it’s a controversial opinion or an accidental overshare, the reputational impact can be severe and difficult to manage once it’s online. The physical risks are equally concerning. Sharing real-time updates—whether posting from a vacation, disclosing your daily routine, or even giving clues about your location—can allow criminals to track your movements and plan targeted actions. The likelihood of crimes like burglary, kidnapping, or extortion increases when personal details are made public.
The Importance of a Comprehensive Social Media Policy
Given the significant risks, UHNW and multigenerational families must implement a strict social media policy.
This should include:
● Location Privacy: Ensure location-sharing features are turned off across all platforms. Be cautious about posting in real-time, as it could reveal family members' whereabouts.
● Limited Sharing: Restrict who can view family profiles and posts by adjusting privacy settings and avoiding the disclosure of personal information publicly.
● Training and Monitoring: Educate all family members, especially younger ones, about the long-term risks of social media use. Regularly monitor social media activity to ensure compliance.
● Approval Processes: Require pre-approval for posts that relate to family businesses, public events, or sensitive matters to avoid accidental disclosures.
● Data Management: Regularly review and delete old posts that may pose a risk. Make sure personal data is protected and kept out of the public domain.
Conclusion
Proactive Management for Long-Term Protection Social media is a powerful tool, but for UHNW and multigenerational families, its use must be carefully managed. These platforms can expose families to significant reputational, financial, and physical risks without a comprehensive social media policy. By taking control of your family’s online presence and implementing clear guidelines, you can enjoy the benefits of social media while protecting your privacy, security, and legacy.
In today’s digital age, safeguarding your family’s future means being proactive about privacy and security— before it’s too late.
This material is provided for informational purposes only and should not be construed as investment advice. Different types of investments involve varying degrees of risk. Discussion or information contained in this presentation does not substitute personalized investment advice from Parallel or another professional advisor of your choosing. Any opinions or forecasts contained herein reflect the subjective judgments and assumptions of Parallel Advisors, LLC (“Parallel”). Parallel cannot and does not provide warranties nor representations as to the reliability or accuracy of the content it shares.