Cybersecurity
Rethinking risk from a work, home and travel perspective
Join Dale Buckner, CEO & Founder of Global Guardian, and Ileana van der Linde, Head of Cyber Advisory, as they delve into the increased cyber and physical risks of today's world and offer insights on effectively managing these risks across different environments.
Descriptive audio
This session is closed to the press. Welcome to the JP Morgan Webcast. This is intended for informational purposes only. Opinions expressed herein are those of the speakers and may differ from those of other JP Morgan employees and affiliates. Historical information and outlooks are not guarantees of future results. Any views and strategies described may not be appropriate for all participants and should not be intended as personal, investment, financial, or other advice. As a reminder, investment products are not FDIC insured, do not have bank guarantee, and they may lose value. The webcast may now begin.
Welcome, everyone, and thank you to those of you joining our call today. My name is Ileana van der Linde and I'm head of the Cyber Advisory at JP Morgan Private Bank. Our Cyber Advisory practice helps our ultra high net worth clients, their families, and their businesses think about cybersecurity and how they can better secure themselves and avoid risk. In today's webinar, we're going to be talking about rethinking risk in our work, travel, and home environments. For today's discussion, I'm happy to welcome Dale Buckner, CEO and founder of Global Guardian.
Global Guardian is a comprehensive security and duty of care firm that offers protections for families and companies, ranging from physical security to cybersecurity. Dale is one of the premier experts in this space, and I asked if he would sit down with us in light of how risk is evolving. Together, we're going to be examining how intertwined cyber and physical risk are, highlight some key risks, and provide some of the best practices we can put in place to mitigate and avoid them. At the end of this call, we'll also be sharing some additional resources available to you.
But first, I want to welcome Dale. I'm excited to have you on the call today. Can you provide a brief background and description of Global Guardian?
Sure. Thank you for having me, Ileana, I'm super happy to be here. We're classified as a duty of care provider with the intent of really solving three problems. One, we want to fill the gap of what insurance does not cover with restrictions. Think war zones, terrorism, natural disasters. Two, we want to be that one button solution where at two or three o'clock in the morning, someone was hacked, someone was kidnapped, someone was stranded, someone is in a war zone. In any of those scenarios, we want to be able to solve that problem. And then lastly, we want to be able to solve these things in minutes and hours. So we are operating in 141 countries around the world. And as we say, that allows us to move in minutes and hours, not days and weeks.
Well, let's dive right in. Our world certainly has changed in the last five to 10 years. From a cyber perspective, cyber attacks have become more sophisticated. There's data breaches, which proliferate, and even our corporate and national supply chains are increasingly vulnerable to attacks. Add to that technology advancements such as AI, quantum computing, economic and geopolitical risks. There's a lot of change in unrest across the globe. So much so that the world we operated in a few years ago is certainly different.
So, Dale, we know that risk differs across the globe. How risk is perceived in different regions such as Europe, Latin America, Asia, the US, different cultures, and different regions perceive risk differently. How does a firm such as yours view global risk?
So number one, we have to all acknowledge that the world we live in today and moving forward is nothing like the world 20, 30, 40, 50 years ago. This really matters. And resetting your mindset, if you will. So I'll use three slides and I'll reference them for the audience because it's complicated. Let's just say that. This first slide I'm going to bring up really showcases the expanding threat vectors at a macro level.
And I think, when you think about a board or you think about a family office, looking at the world now matters and how you view these things, geopolitics matter. What happens in France with their election six months ago matters because it has a direct effect on the West and the United States. What happened with Modi in India in the election matters because he's lost his majority. So things are going to slow down. Ultimately, when you think about geoeconomics, coming out of COVID in a post post-COVID world, the supply chain of the world matters. We all learned massive lessons about the vulnerability and how fragile our supply chain was, and the West dependency on Asia. That continues.
It's rebounded. We've normalized to a degree, but things have not come back completely to normal, nor will they ever, is really the mindset. When you think about cyber, as we've discussed in material ways, it only continues to increase, the threat vector's more complicated. When you think about natural disasters, when you think about wildfires, hurricanes, tsunamis, and just the damage it's being done and being able to target where those things are habitually happening, now needs to become part of the calculus of, where am I going to open my next office? Am I going to put it in a place that's vulnerable for tornadoes, earthquakes, hurricanes, so on and so forth?
Those things do matter now. And will that city be underwater in 30, 40, 50 years is part of this calculus. So all those things at a macro level really do matter. So as you look at slide number two, I think, when I show this to audiences, they're always stunned. You can literally see people's eyes get very large because as you look at this slide at a macro level, and this is all from the Institute of Peace, there are 52 war zones going on right now in this world. Most of us are myopic on what's happening with Israel and the Middle East, and Lebanon, Gaza and Israel, Syria. Most of us are myopic on the conflict with Russia and Ukraine.
But ultimately there are 52 conflicts around the world, and it's affecting and involving 92 countries. Most people don't know that. They don't truly appreciate it. When you look at that map, and you look and you see Yemen. Yemen is unsophisticated, military capability and the rebels are unsophisticated. And the most powerful Air Force and the most powerful Navy in the world being the US, cannot control and cannot stop the Houthis in Yemen from shutting down the Red Sea.
Wow.
It's a powerful statement that we cannot stop what they're doing. So as you look at this last slide, I also--
And why is the Red Sea so important?
Because as you look at this map, the Red Sea is one of 11 transports in the world with 90% of all global supply chain being delivered by sea.
Yes.
The Red Sea is one of those key transportation transport locations in the world where if it's disrupted or shut down, and as of today, 95% of all global supply chain materials have been shut down from going through the Red Sea.
Wow.
At a global scale, as you look at the slide, look closely, that's 23% of our global capability to move goods through and around the world. When you shut down 23% of the world's global supply chain capability, all of us are paying for this. It is disruptive and it's expensive. Every boat is now spending several million dollars to go all the way around to the South, around the Horn of Africa, to then get to the West. It's a material development.
So looking forward, as you look at that map, look to the South China Sea. If we were to see a disruption, even if it wasn't a full on kinetic war in the South China Sea, and you were to disrupt either of those key checkpoints, if you will, through some blockade, some kind of conflict, even if it's economic, you could literally put the world in a global recession almost overnight. And we will all pay for that. So as you look at that slide, I think, number one, the key takeaway being there are 11 choke points in the world that matter. And we the West, we the United States, we NATO do not control all 11. And our enemies get a vote.
And if they really want to move the dial in as part of a coordinated effect or an attack, this is an economic way to attack the West and affect all of us in a corporate space, and in our family space.
It certainly is a very different world from both a cyber and physical risk perspective. I heard you recently say that many have a failure of imagination when we think about risk and how we can be vulnerable, but I think it's also human nature to think things won't happen to me. There are things happening in other parts of the world. Let's start with what makes a person a target to begin with.
So I answer this in two parts. I think number one, the world we currently live in is so digitized and we're all so exposed. So much of our personal information on the open web and the dark web is available to the world. And with just a little bit of sophistication, a little bit of training, and some software, there's just an enormous amount of information out about all of us in this space. So to start with, if you have created wealth, there is no ability to hide anymore. If your assets are not separated from you and I can find them and tie them to you, you're now a target.
In addition, based on the way our society operates, we want to communicate what we're doing, and what we're doing, where we're doing it, how we're doing it. Let alone family members and/or employees operating on social media and forecasting, and projecting out what we're doing, when we're doing it, and how we're doing it.
Exactly.
So when you think of all that, you can tie your digital footprint to your physical footprint, and now you can be targeted. And it's as simple and there are probably 1,000 different ways. But simply put, you can be a person that's a man in the middle, in a cyber scenario. You can have someone that is helping you in your own residence, whether that's construction, a gardener, a cook, a nanny. They're in your world. There's information accessible. You now have exposure.
And I don't think that people really take that serious. I hear quite often from the client base, Dale, why would anybody track me or care about me? I fly under the radar. And my counter, simply put, is no one flies under the radar. That's not the world we live in. Maybe you could get away with that 40 years ago. But you can't fly under the radar if you're getting on a jet, getting on a yacht and you have a certain corporate or family exposure online. So all those things together really lead to how you transition from a digital footprint to a physical attack, if you will, and how you become a target.
Things have changed over the last, certainly, five years, where we've seen the attacks become more sophisticated, with tools such as AI that are facilitating an easier way to target people. So we work on and stress on that at all times. I think the other thing is that hackers also go where the money is, right? And they know, if they read about it or read about the assets, they read about a perceived lifestyle, that's also changing. In fact, cyber crime is even expected to reach, I think it's the third largest economy at this point, and it's expected to reach $9.2 trillion in the next, I think, even at the end of 2024, and is expected to grow about 70% in the next five years. So it's not going to get better. It's only going to be getting worse.
Let's talk a little bit about law enforcement, how it's so hard to catch these people, these criminals? Tell me a little bit about that from your vantage point.
So on the physical side, using that digital footprint to then target, if you will. The other piece of the exposure is that the fabric of our society is changing the West in general. And what is expected of leadership, what is expected of our governments, what is expected of our politicians, has led to an environment where I do think that law enforcement feels hampered. I do think that you're not going to receive and/or see the response you might have seen 20, 30 years ago, in many cases. In addition, you're seeing that, to your earlier point, if you want to get rich, you go where the money is, if you will.
Ultimately, there used to be, society had red lines. There were places you didn't go. There were places that criminal organizations avoided. Now it's the exact opposite. If you think everything from flash mobs to the Chilean dinner groups to most recently, the NFL players being robbed when they're at away games. Again, because there's a digital footprint, you know they're physically gone. All those are simple examples where you can be targeted. And again, if it's not a serious crime, law enforcement might not be as responsive or have the bandwidth or the capacity to investigate and put the effort and time into these things that they might have years and years ago.
So I do think the environment's changed where the response is different. And now, simply put, you're being targeted based on that ability to find you, to fix, and then go after your assets.
Let's pivot to work environments. Corporations and businesses have certainly changed how they think about cybersecurity, in which it's much more at the forefront on how they reflect on risk and security. Most cyber attacks are targeting businesses of all sizes, but small and medium sized businesses specifically are often more at a loss because they don't have the layers of security and protection that larger organizations have. When we meet with businesses, we certainly recommend that readiness tests and to include cyber assessments as a budget, a line item. This is no longer just something that is just in the background as technology. But you really have to think of cyber in the forefront.
From a physical security risk, how has it changed, how have you seen it change?
So I think in multiple layers. Corporations big and small, typically, we would focus on putting in a layer of security for people that travel. So think medical evacuation, car and driver, executive protection, things like that. But it was mostly focused on international travel to what you would consider medium to high risk countries. I think the pivot that's happening right now is there is an element of an aha moment, and you see that as part of what's happening with the UnitedHealthcare CEO and major events around the world. No one saw, whether it's a natural disaster like Asheville, North Carolina, and what happened with the hurricanes, no one saw New Orleans, what just occurred, no one saw what just happened in Germany at the Christmas market.
When you combine all of that, the psyche of corporate America, and boards in general are starting to now realize anything can happen anywhere, and that we're going to have to have layers of physical security beyond just international travel to medium, and high risk countries. The reality is, anything can happen anywhere. No one saw the 2015 Paris attacks in Paris. If I asked your average Westerner, is Paris a great city? Is it safe? People say it's a city of lights. A city of love. Of course it's wonderful. There's an underbelly and current in that part of the world, and it makes it a target.
If I asked you, what do you think about the safety and security of Maui? People would say it's paradise. Yet 100 people burned to death. Billions of dollars in losses. Things dramatic that are exposed in look quite dramatic in the news. The reality is people are realizing that you're going to have to have a physical security response, and it doesn't matter when, where, or how. And now that's being exposed within the United States. And I do think there's a material pivot, even within the United States, realizing that there are going to have to be more sophisticated systems and boards are going to start treating c-suites as an asset, and therefore start mandating these layers of security for those c-suite members, and their high volume travelers.
No, I think that's certainly that makes sense, certainly for a lot of the larger, businesses, and corporations. How do you think this might also relate to a smaller organization, such as a family office. Yeah, when you think about family offices or a private equity firm, they're law firms. They don't typically have large administrative staffs. They might not have an HR director. They might have someone dual hatted. They might not have a chief security officer.
With the family office that's certainly the case. Multiple people would be dual headed. And there might not be a specialist in cyber in-house. It might be outsourced. They might not have an in-sourced chief security officer. It's outsourced or some version of that. So the trick in all of those cases is to, number one, look at all of the different from insurance down to those vendors and those services. And then synchronizing them.
What you don't want to do or be faced with at three o'clock in the morning as a family office or a smaller firm is you now have an issue with an individual from the firm that has a material problem somewhere in the world or even right here in the United States. So when you think about that, you don't want to be trying to scramble and figure out what is the solution? Who do I call? Is it a vendor? Is it insurance? How am I going to solve this problem?
So the trick is to synchronize all of those assets, integrate them where you can. And then have a playbook that's very simplified. You don't want a 300 page document for a crisis reaction plan.
No.
You want 10 to 15 slides, if you will, or 10 to 15 pages that are bold highlights of exactly how you're going to work your way through a kidnapping, a material medical issue, a natural disaster, terrorism, or someone stranded potentially in a conflict zone. You want a simple outline. You want to who you're going to call, what that response will be, and what the expectation should be.
When we look at businesses, I think from a cybersecurity perspective, we always suggest a holistic assessment as well, to understand, not only is the network secure, a lot of people leave it at just a penetration test. But we suggest, going much deeper into an assessment of how do I physically access a building? How can I socially engineer your employees? And things like that. Because getting into a business, if I do want to disrupt, it can happen in so many different ways.
I think one of the things that we are really seeing a shift in which you alluded to a little bit before, is security now also having a place at the boardroom table. Talk to me a little bit about that on what you're also seeing from boards.
So very directly, as I kind of alluded to earlier, is boards are being forced. If you think about your average age of a board member in larger corporations, they're older. Cyber is a foreign thing to many boards, and it's been a problem because they haven't leaned into it hard enough. They haven't taken it seriously enough. Now there's no option. When you're looking at $9 trillion in losses globally through 2024, and now accelerating to $15 trillion in losses in a four-year period, as you talked about, it's the equivalent of the third largest economy in the world. I don't think most executives think that way. And that's being alluded.
Number two, as we described earlier, I think boards are being forced about thinking about their c-suite members as an asset. And that extends to their lifestyle, that extends to their primary home, their vacation home, their travel. And then this is what people really don't think through, is the soft underbelly of many of your c-suite members and your high exposure employees, if you will, is the family members. If you think about, I'm not going to attack them directly, whether it's physically or digitally, but I'm going to go after a spouse or children. And when you think about spouse and children, social media is a huge exposure.
There's so much being forecasted out there. There's so much information in near real time. So kind of the golden rule of this with family members in general is, you don't want to forecast your travel, your vacation. Don't do anything in real time. If you go on a trip to the Med, you want to put on 2,000 photos on your Facebook? You do it, but you do it after the trip. Nothing in near real time.
So when you think through all those things, I think boards are being forced to think about all of that security. And then at the corporate level, on a global stage, I do think they're having to really think through that global supply chain. And how do I minimize that exposure in Asia? And if I do move it to other parts of Asia or Mexico and nearshore. Now we need to talk about the realities of the threat in Mexico, for example, or Central America, or Latin America in general.
There's a whole series of different threat vectors that's different than Asia. That you can't just move your supply chain and assume that it'll be the same environment. It's completely different. So I think all of those things are being unwound. And I think it's now top of mind, it's forefront, and there really is not an option because what you do now is going to affect the next 20 or 30 years as you operate globally.
And I think, really what we see is that cyber and physical security representatives have to have a seat at the table. This is no longer something that we call upon afterwards, but they have to be in the decisions right up front.
No question. We're seeing it in real time where just prior to COVID, there was a movement that was energy and momentum that had started where chief security officers, chief information security officers are now sitting at that board table in the room supporting the board, providing information, providing details, providing forecasts in a way that they had not in the past. Now that we're in this post-covid world, that energy is returned. And now global events from the conflicts to what's happening right here in the United States, to what you're seeing with the fabric of the country, all of those things are driving boards to now want to bring in that subject matter expert with both digital and physical security.
Absolutely let's pivot to travel. Whether we go to out of the way places or to the vacation home that we're used to visiting. Travel risk has also changed. Like you said, we have family members that are posting way too much about where we're going, what we're doing. What are some of the biggest mistakes that you see clients make around travel?
So there's really about, there's a top five. We talked about several of these topics, but I'll frame it this way. If you don't read insurance and you have travel insurance for medical evacuation or security evacuation, if you don't understand how that platform works, and you don't read the fine print on the restrictions, then you're inevitably going to be disappointed. We receive calls consistently going, I thought I had this covered, but now the environment's changed, whether it's a natural disaster or conflict, so on and so forth, where now I don't actually have anything, and I need help.
So the first primary mistake is you really need to understand what you're covered for, and what the environment, and the restrictions are so you can receive that service. Focus primarily on medical and evacuation services.
Sure, sure.
Two, I think when you think about your average traveler, they should not be trusting on their cell phone and their laptop, the public Wi-Fi in international hotels, at your international eatery, at your international coffee place. All of those things in the public space just create exposure into your life, into your company, into your family. I don't think that most of your travelers are thinking about simple things, simple to us, and that we've had Westerners detained in China, in Russia, in India, so on and so forth, based on the political and changes within that country, and changes in-laws, and people aren't tracking it.
We get six to eight cases a year of Westerners traveling to India with tracking devices, satellite devices. Satellite phones are illegal. Anything that has a satellite capability is illegal in India, and they will detain you. And they will detain you for days, potentially.
Really?
And you need someone that you can call outside of the Embassy because if it goes into the government channels, inevitably now it's going to slow down, become more bureaucratic, and take much more time. So you really need to understand the environment you're going to. What are the local laws, what is prohibitive, what's not, and so on and so forth. And then lastly, I think most of our clients in family offices really have to think through if there is someone kidnapped, if there is someone stranded in a wildfire, an earthquake, a hurricane, a tsunami or a conflict zone.
I'm always stunned by the veracity of how people are so surprised when these things happen. Because back to your earlier point, most people, human nature dictates--
It's never going to happen.
--that's on the news. It's never going to happen to me. And then when it does, they're stunned and they realize they have massive exposure, both for their family and/or their company. So working through those systems, ultimately leading to this conclusion. If you cannot answer the questions, what do I do if someone's kidnapped? What do I do if I'm hacked? What do I do if I'm stranded? What do I do if I have a material medical issue and don't want to receive medical treatment in that part of the world? If you can't answer those questions--
Before you go.
--before you go, then don't get on the airplane, or don't get on the boat, or don't get on the train. And that's really the simplistic framework of these things. And the last data point, when you think about, you can Google the FBI's kidnap and ransom data for Mexico, for example, close border friend here. When you think about that, there's about 250 to 300 Americans that are kidnapped in Mexico every year as a data point. That's reported. The reality is we estimate it's well over 700 because the majority of this is all handled privately, so it never reaches the FBI stats. The FBI will openly admit that.
So when you think about that, when you think about the level of risk, and human nature dictating, that'll never happen to me. I go to Cabo, I go to the nice part of Mexico City, so on and so forth. The reality is this happens every day, every month, at a pace that we've never seen before. And the estimate in looking over the horizon is this only gets worse. So having a plan before you get on that aircraft or cross that border, matters. And if you do have that plan and nothing ever happens, you're in great shape.
You're in great shape.
But if something occurs, now you don't have to panic and you don't have to--
Yeah, and I think preparedness up front, we also suggest to clients that you need to be using the VPNs, you need to be embracing these tools. Privacy-oriented browsers. You need to be using Faraday bags. Things that will help prevent your digital security from becoming exposed so that your physical security stays secure. Great, I think we definitely all need more situational awareness. Like, people are constantly on their phones and not really aware of what's going on around them. And that's also something.
Let's pivot actually to the home environment. In our home, we often expect, that's where we're secure, that's where we feel comfortable, but we often see certainly a lot of these home environments very compromised. I recently had a client who was very concerned about security. Their family business was going to be sold, and they knew that there would be news about this. And were worried about the publicity.
The client said to me, I don't really know what I need, but I need everything because it was going to be a large amount of wealth. What we first did was we helped them secure their personal environment, reduce their digital footprint, come in and do a home, Wi-Fi assessment, and also look at their AV system, and their physical security of the home. That was it. Sure enough, when the news did come out about the family's sale of the business, her home network was immediately attacked. And so we were very happy that we were able to help facilitate that.
I remember, I think another incident that I think you once shared with me where a client had it was published that they had a certain amount of cryptocurrency. And the perceived wealth of this person, it was in the millions, so people showed up on their lawn. And once the digital or the security is known, that's also where physical security comes in.
Let's expand a little bit on how people are, what's happening in the home environment. Let's talk a little bit about that.
So when you think about your home or a vacation home, they both have requirements in this environment that we're living in because of the digital footprint. As to your point, people want to feel secure in their home. Totally understand it's the one place you should be able to let your hair down and live your life and be with your family. Ultimately, when you think about the threat to your home or vacation home, not only is it everything you just described and did for your client on the digital side, which good on you for being prepared for them. When you transition that if you have help around the house or you're doing large reconstruction projects or updates on a home, there's immediate exposure. When you think about nannies, cooks, pool assistants, and construction, you want to know who's coming in and out of your space. You need to be able to track that physical transaction.
You need the background checks of those people. You need to who's in your space. And then you've got to be able to track that interaction.
Two, as you described it, having all of those systems, the, quote unquote, smart home technology also creates exposure. If everything is running off of Wi-Fi, no one's checked your router, the security of the router, the encryption of the router. If no one's checked, the encryption of the Wi-Fi to connect with all the systems, from the air conditioning to the TV to the garage door, so on and so forth, you have exposure.
When you think about camera surveillance and access control, it's great that people are buying at scale these systems from a Home Depot or Lowe's that you can do it yourself. The issue is, if you're in a meeting, you're on an airplane, you're on vacation, you don't have the ability to now secure your own facility, if you will. You've got to have it professionally monitored. It's got to be in real time. And as you look over the horizon, there's going to be incredible advancements through AI and physically securing your residence, your vacation home and your space. And people with family offices should be thinking about all of those things.
Absolutely.
And it's got to be monitored in real time. All of this is about speed of response. And all of this is about putting out a sensor, if you will, to pick up a potential threat as far out as humanly possible.
Yeah.
All those things matter in your home space, if you will. And then for your vacation homes, having that monitored with a remote guard system so that every hour on the hour it's checked on matters so you don't have exposure where something occurs and you don't about it for 6, 8, 12 weeks. This happens quite often. So on and so forth. So all those things matter when you think about home security and what your family is doing online and what they're doing physically.
Do you think, is wealth being targeted in the West? I mean, typically we hear about these things in perhaps other areas of the world. Tell me a little bit about in the US, how is wealth being targeted, particularly in the homes.
So again, you think about those red lines we talked about earlier. There were areas in every major city where there was wealth created in this country. There was a bit of a red line that things didn't occur there. People avoided it. Criminal groups avoided those areas. Now it's the exact opposite. So 60 Minutes did a great piece on this. You can Google it and watch the story. It's 15 minutes long.
But they've profiled a Chilean armed robbery group that has figured out a way to target wealth in the United States, city by city. They typically will put up drones over the House and monitor for weeks at a time. They will typically pay someone off that has access in and out of the home, as we described earlier, whether that's construction, nanny, cook, so on and so forth. They will identify the assets in that home before they ever go in, and they will collect data for months. Once they understand the lifestyle, the travel schedule, when people are there, when they're not, then they will strike.
And to your earlier point, they're utilizing the most sophisticated sensors that you would think only governments have access to. And they're jamming Wi-Fi systems. They're shutting down camera surveillance systems, if they're not secure and encrypted. And they're shutting down the ability for the alarm system to go out and alert. So when you think of that, and they're so successful, and so emboldened that they're leaving coins in the House as a signature to say, we were here.
So in addition, you're going to see in the news cycle, and I'm not picking on Chile or the Chileans by any means. When you hear about the gang activity from Venezuela, the movement of cartels and the expansion of cartels in the United States, the expansion of the Chilean dinner gang, if you will, or what you've seen in the news with the NFL players being targeted when they're away, all of these are interconnected. There's connective tissue to all of these operations.
Ultimately leading to this conclusion. Wealth is being targeted, your digital footprint matters. The ability to lock down your home and encrypt those systems, the ability to control access of who's coming in and out of your home, and the ability to who is in your space with those background checks, and sitting down with those people and ensuring that they're trustworthy and they don't have affiliations with some of these kinds of organizations, now matters in a way it simply didn't in the past.
Risk certainly has a very different face than it did even 5, 10 years ago. Dale, we covered a lot of ground today, talking about cyber and physical risks from so many different angles, but particularly around work, home and travel, and how it affects the family. We've covered a lot of points. What additional key takeaways might you want to add.
So I think to conclude, I would simply say at a macro level, as we opened with geopolitics and geoeconomics. My message to everyone is, you should anticipate 5 to seven major global disruptive events a year. Whether that's terrorist attacks, whether that's a war zone, whether that's natural disaster. No one really believed the Russians were going to roll tanks into Ukraine until it happened. No one saw what happened coming out of Gaza with Hamas going into Israel.
When the most sophisticated human Intelligence agency in the world and the Western intelligence platform in the world, misses things like this. No one saw the 2015 terrorist attacks. No one saw the 2017 Turkey coup. Certainly no one saw what happened in New Orleans recently. All of these things matter. So the mindset should be, number one, we shouldn't be surprised.
We should anticipate that there are going to be five to seven major events this year that are going to affect all of our lives, both corporately and individually. Start there. And don't be surprised.
And don't be surprised.
That's the first trick. If you're not surprised, then you'll be prepared. Two, I think looking forward when you think about, how am I going to protect my company? As you've described over and over this morning, basically the physical and digital footprint matters. You need those subject matter experts. You can't wait any longer. You've got to bring them in, and you have to put the effort, time and expense into it up front to be truly prepared. And to your point, stress test all of those systems.
So I think if boards are doing and thinking in those terms from a geopolitical level down to the physical and digital and really looking at their assets and trying to get ahead of the next 5 to seven events or the next hack, or the next kidnap and ransom, or the next terrorist attack, they're on the right path at the corporate level. No question.
For individuals, we also, there are many things that companies can do, but I think it also is a little bit eye-opening for individuals. And there are a lot of things that one can do oneself. A family can shore up their cyber defenses. I always say, get back to basics. There are some things that are very obvious, but it's always amazing how cyber criminals are able to get access to these things. First, work to maintain or regain your privacy. And some people say oh, everything's already out there. What do I care?
You can work to actually minimize that. And just because you were lax in the past, doesn't mean that you continue with those kind of bad habits in the future. There are a lot of things that you can put in. Like we said earlier, using VPNs, privacy-oriented browsers, search engines, passwords, there's so many digital things. But also making sure that your networks are secure, both at home and at work, because it's always amazing with, as we were saying earlier, with all the smart devices that we have in our house, how easy it is to access those and access a home environment. But I think we all need to be better prepared.
Anything else you want to add to that from an individual perspective, you think?
So I think, as described earlier, when you think about protecting your family, really look at your children's activity, your spouse's activity on social media. Lock that down. It's a simple thing, to your point, you can do this. This is self-care. Gain your privacy back and lock those systems down, and make sure your home is locked down from every aspect. You can do that yourself. You don't need to be probed or led in certain directions. Not hard to do.
I think, when thinking about a family office or a family on the travel side, again, the five golden rules. Don't get on that plane, train, or boat if you can't answer those key questions. If you've gone through that homework, and you have emergency contacts, and you have a family office that has that playbook, you're in a very strong position, and you won't be surprised when that next shoe drop hits. And it now does affect you as a family. So I think that's the proper mindset. And if you adopt that mindset and you anticipate these things and have a plan, you're in great shape.
Absolutely. Thank you so much, Dale. You shared a great deal of insight today on today's call. I want to remind our clients that the cyber advisory team can work directly with your bankers and advisors to provide you an in-depth cyber educational session, as well as additional resources. I do want to remind everyone that cyber threats pose hazards to us all, and it's important to be prepared. Cyber criminals are getting more sophisticated and better what they do daily.
Again, Dale, Thank you for your time and a big thank you to all that joined today. I always learn something new every day, and I'm sure that our clients have as well. Thank you so much. And stay safe out there.
Thank you for joining us. Prior to making financial or investment decisions, you should speak with a qualified professional in your JP Morgan team. This concludes today's webcast. You may now disconnect.
(DESCRIPTION)
Logo: J.P.Morgan. Text: Please Note: This session is closed to the press. The views and strategies described herein may not be suitable for all clients and are subject to investment risks. Certain opinions, estimates, investment strategies and views expressed in this document constitute our judgment based on current market conditions and are subject to change without notice. This material should not be regarded as research or as a J.P. Morgan research report. The information contained herein should not be relied upon in isolation for the purpose of making an investment decision. More complete information is available, including product profiles which discuss risks benefits liquidity and other matters of interest. For more information on any of the investment ideas and products Illustrated herein, please contact your J.P. Morgan representative. Investors may get back less than they invested, and past performance is not a reliable indicator of future results. This information is provided for informational purposes only. We believe the information contained in this video to be reliable: however we do not represent or warrant its accuracy. reliability or completeness or accept any liability for any loss or damage arising out of the use of any information in this video. The views expressed herein are those of the speakers and may differ from those of other J.P. Morgan employees and are subject to change without notice. Nothing in this video is intended to constitute a representation that any product or strategy is suitable for you. Nothing in this document shall be regarded as an offer, solicitation, recommendation or advice (whether financial accounting legal, tax or other) given by J.P. Morgan and/or its officers or employees to you. You should consult your independent professional advisors concerning accounting legal or tax matters. Contact your J.P. Morgan representative for additional information and guidance concerning your personal investment goals. J.P. Morgan is not responsible for information provided by guest speakers (unaffiliated with J.P. Morgan) or the use by attendees of such information. J.P. Morgan cannot verify the accuracy of guest speaker content, views of statements, and accepts no responsibility for any direct or consequential losses arising from its use. Any discussion of companies/markets by guest speakers should not be interpreted as a recommendation to buy or sell or is an endorsement by J.P. Morgan. INVESTMENT AND INSURANCE PRODUCTS: NOT A DEPOSIT, NOT FDIC INSURED, NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY, NO BANK GUARANTEE, MAY LOSE VALUE.
(SPEECH)
This session is closed to the press. Welcome to the JP Morgan Webcast. This is intended for informational purposes only. Opinions expressed herein are those of the speakers and may differ from those of other JP Morgan employees and affiliates. Historical information and outlooks are not guarantees of future results. Any views and strategies described may not be appropriate for all participants and should not be intended as personal, investment, financial, or other advice. As a reminder, investment products are not FDIC insured, do not have bank guarantee, and they may lose value. The webcast may now begin.
(DESCRIPTION)
Golden brush strokes on a black background spell out the Logo: J.P.Morgan.
Text: Ideas & Insights.
A woman sits at a table with a gray fluted fabric backdrop.
(SPEECH)
Welcome, everyone, and thank you to those of you joining our call today. My name is Ileana van der Linde and I'm head of the Cyber Advisory at JP Morgan Private Bank. Our Cyber Advisory practice helps our ultra high net worth clients, their families, and their businesses think about cybersecurity and how they can better secure themselves and avoid risk.
(DESCRIPTION)
A slideshow presentation appears in the right half of the screen. Slide: Rethinking Risk at Work, Home, and Travel. Empowering You and Your Business to Make More Informed Decisions. J.P.Morgan. Disclaimer text too blurry to read is at the bottom.
(SPEECH)
In today's webinar, we're going to be talking about rethinking risk in our work, travel, and home environments. For today's discussion, I'm happy to welcome Dale Buckner, CEO and founder of Global Guardian.
(DESCRIPTION)
Dale sits at the table near Ileana. Slide: Empowering You and Your Business to Make More Informed Decisions. There are profile photos of Ileana and Dale, both wearing dark business suits. Text: Ileana van der Linde. Head of Cyber Advisory. J.P.Morgan Private Advisory. Dale Buckner. Chief Executive Officer. Global Guardian. Introductions. The Landscape has Changed. Risk at the Office. Risk at Travel. Risk in the Home. What can you do better to protect yourself, business, and family. Key Takeaways.
(SPEECH)
Global Guardian is a comprehensive security and duty of care firm that offers protections for families and companies, ranging from physical security to cybersecurity. Dale is one of the premier experts in this space, and I asked if he would sit down with us in light of how risk is evolving. Together, we're going to be examining how intertwined cyber and physical risk are, highlight some key risks, and provide some of the best practices we can put in place to mitigate and avoid them. At the end of this call, we'll also be sharing some additional resources available to you.
But first, I want to welcome Dale. I'm excited to have you on the call today.
(DESCRIPTION)
The Logo: J.P.Morgan, is displayed on the gray backdrop between them.
(SPEECH)
Can you provide a brief background and description of Global Guardian?
Sure. Thank you for having me, Ileana, I'm super happy to be here. We're classified as a duty of care provider with the intent of really solving three problems.
(DESCRIPTION)
Text: Dale Buckner. CEO and Founder, Global Guardian.
(SPEECH)
One, we want to fill the gap of what insurance does not cover with restrictions. Think war zones, terrorism, natural disasters. Two, we want to be that one button solution where at two or three o'clock in the morning, someone was hacked, someone was kidnapped, someone was stranded, someone is in a war zone. In any of those scenarios, we want to be able to solve that problem. And then lastly, we want to be able to solve these things in minutes and hours. So we are operating in 141 countries around the world. And as we say, that allows us to move in minutes and hours, not days and weeks.
Well, let's dive right in. Our world certainly has changed in the last five to 10 years. From a cyber perspective, cyber attacks have become more sophisticated. There's data breaches, which proliferate, and even our corporate and national supply chains are increasingly vulnerable to attacks. Add to that technology advancements such as AI, quantum computing, economic and geopolitical risks. There's a lot of change in unrest across the globe. So much so that the world we operated in a few years ago is certainly different.
So, Dale, we know that risk differs across the globe. How risk is perceived in different regions such as Europe, Latin America, Asia, the US, different cultures, and different regions perceive risk differently. How does a firm such as yours view global risk?
So number one, we have to all acknowledge that the world we live in today and moving forward is nothing like the world 20, 30, 40, 50 years ago. This really matters. And resetting your mindset, if you will. So I'll use three slides and I'll reference them for the audience because it's complicated. Let's just say that. This first slide I'm going to bring up really showcases the expanding threat vectors at a macro level.
(DESCRIPTION)
Slide: Ever Expanding Risk Vectors. A graphic features a horizontal line with icons above and below it from left to right. From the left: A globe icon. Text: Geopolitics - hot wars in Europe, Middle East, and Africa. A dollar sign. Text: Geo-Economics - new industrial policies, preferential trading relationships shifting. A nuclear warning icon. Text: Risks: Everything, Everywhere, All the time. A computer and cloud icon. Text: Cybersecurity and disruptive technology - government-backed hacking, cyber criminals, hacktivists, AI-enabled disinformation. A landscape icon. Text: Environment - extreme weather, water scarcity, food insecurity, forced migration. A syringe icon. Text: Public health crises - pandemics. A blue arrow moving to the right reads: The world is changing… fast.
(SPEECH)
And I think, when you think about a board or you think about a family office, looking at the world now matters and how you view these things, geopolitics matter. What happens in France with their election six months ago matters because it has a direct effect on the West and the United States. What happened with Modi in India in the election matters because he's lost his majority. So things are going to slow down. Ultimately, when you think about geoeconomics, coming out of COVID in a post post-COVID world, the supply chain of the world matters. We all learned massive lessons about the vulnerability and how fragile our supply chain was, and the West dependency on Asia. That continues.
It's rebounded. We've normalized to a degree, but things have not come back completely to normal, nor will they ever, is really the mindset. When you think about cyber, as we've discussed in material ways, it only continues to increase, the threat vector's more complicated. When you think about natural disasters, when you think about wildfires, hurricanes, tsunamis, and just the damage it's being done and being able to target where those things are habitually happening, now needs to become part of the calculus of, where am I going to open my next office? Am I going to put it in a place that's vulnerable for tornadoes, earthquakes, hurricanes, so on and so forth?
Those things do matter now. And will that city be underwater in 30, 40, 50 years is part of this calculus. So all those things at a macro level really do matter. So as you look at slide number two, I think, when I show this to audiences, they're always stunned.
(DESCRIPTION)
Slide: Global Conflicts Return. On the left is a map labeled Global Peace Index. Most of North America, the bottom of South America, Western Europe, South Africa, East Asia, and Australia are gray. Central America, most of South America, most of Africa, Eastern Europe, Russia, the Middle East, and Southeast Asia are all in various shades of yellow, orange, and red. Text: Highest number of countries engaged in conflict since World War II. Currently 56 conflicts, the most since World War II. 92 countries involved in conflicts outside their borders, the most since the GPI’s inception. Post-COVID Conflict. COVID provided a short-lived de-escalation of global conflict and war. Returning global conflict zones: Ukraine/Russia, Afghanistan, Iraq, Syria, Libya, South Sudan, Somalia, Venezuela, India, Ethiopia, Pakistan, Mexico, Israel - Lebanon, Yemen. Without a concerted effort, there is a risk of a surge in major conflicts. Is your team - firm ready?
(SPEECH)
You can literally see people's eyes get very large because as you look at this slide at a macro level, and this is all from the Institute of Peace, there are 52 war zones going on right now in this world. Most of us are myopic on what's happening with Israel and the Middle East, and Lebanon, Gaza and Israel, Syria. Most of us are myopic on the conflict with Russia and Ukraine.
But ultimately there are 52 conflicts around the world, and it's affecting and involving 92 countries. Most people don't know that. They don't truly appreciate it. When you look at that map, and you look and you see Yemen. Yemen is unsophisticated, military capability and the rebels are unsophisticated. And the most powerful Air Force and the most powerful Navy in the world being the US, cannot control and cannot stop the Houthis in Yemen from shutting down the Red Sea.
Wow.
It's a powerful statement that we cannot stop what they're doing. So as you look at this last slide, I also--
And why is the Red Sea so important?
Because as you look at this map, the Red Sea is one of 11 transports in the world with 90% of all global supply chain being delivered by sea.
(DESCRIPTION)
Slide: Elections and Global Supply Chains - Connective Tissue. A map titled, Global Shipping Chokepoints: Current Geopolitical and Climate Risks to Global Trade, shows blue lines across the Pacific and Atlantic oceans, around the tip of Africa, and through the Mediterranean and Red Seas. The map has icons on it around the entrances to the seas, with a key too blurry to read. Text: Red Sea Disruptions. Shipping costs spiked from 200% to 350%. 10 of 11 functioning (77% capacity). South China Sea. 9 of 11 functioning (40% capacity) - 700% plus increased cost? Global Economy? Loss of Supply Chains and Markets. 90% of all global trade is facilitated by sea, with shipping container volume expected to triple by 2050. Merchant shipping relies on certain trade routes to move goods efficiently. There are eleven major chokepoints where maritime traffic navigates constricted areas to pass from one main body of water to another. Control over these waterways has always been coveted. Following World War II, patrol largely fell to the U.S. and control largely fell into the hands of newly decolonized states.
(SPEECH)
Yes.
The Red Sea is one of those key transportation transport locations in the world where if it's disrupted or shut down, and as of today, 95% of all global supply chain materials have been shut down from going through the Red Sea.
Wow.
At a global scale, as you look at the slide, look closely, that's 23% of our global capability to move goods through and around the world. When you shut down 23% of the world's global supply chain capability, all of us are paying for this. It is disruptive and it's expensive. Every boat is now spending several million dollars to go all the way around to the South, around the Horn of Africa, to then get to the West. It's a material development.
So looking forward, as you look at that map, look to the South China Sea. If we were to see a disruption, even if it wasn't a full on kinetic war in the South China Sea, and you were to disrupt either of those key checkpoints, if you will, through some blockade, some kind of conflict, even if it's economic, you could literally put the world in a global recession almost overnight. And we will all pay for that. So as you look at that slide, I think, number one, the key takeaway being there are 11 choke points in the world that matter. And we the West, we the United States, we NATO do not control all 11. And our enemies get a vote.
And if they really want to move the dial in as part of a coordinated effect or an attack, this is an economic way to attack the West and affect all of us in a corporate space, and in our family space.
It certainly is a very different world from both a cyber and physical risk perspective. I heard you recently say that many have a failure of imagination when we think about risk and how we can be vulnerable, but I think it's also human nature to think things won't happen to me. There are things happening in other parts of the world. Let's start with what makes a person a target to begin with.
So I answer this in two parts. I think number one, the world we currently live in is so digitized and we're all so exposed. So much of our personal information on the open web and the dark web is available to the world. And with just a little bit of sophistication, a little bit of training, and some software, there's just an enormous amount of information out about all of us in this space. So to start with, if you have created wealth, there is no ability to hide anymore. If your assets are not separated from you and I can find them and tie them to you, you're now a target.
In addition, based on the way our society operates, we want to communicate what we're doing, and what we're doing, where we're doing it, how we're doing it. Let alone family members and/or employees operating on social media and forecasting, and projecting out what we're doing, when we're doing it, and how we're doing it.
Exactly.
So when you think of all that, you can tie your digital footprint to your physical footprint, and now you can be targeted. And it's as simple and there are probably 1,000 different ways. But simply put, you can be a person that's a man in the middle, in a cyber scenario. You can have someone that is helping you in your own residence, whether that's construction, a gardener, a cook, a nanny. They're in your world. There's information accessible. You now have exposure.
And I don't think that people really take that serious. I hear quite often from the client base, Dale, why would anybody track me or care about me? I fly under the radar. And my counter, simply put, is no one flies under the radar. That's not the world we live in. Maybe you could get away with that 40 years ago. But you can't fly under the radar if you're getting on a jet, getting on a yacht and you have a certain corporate or family exposure online. So all those things together really lead to how you transition from a digital footprint to a physical attack, if you will, and how you become a target.
Things have changed over the last, certainly, five years, where we've seen the attacks become more sophisticated, with tools such as AI that are facilitating an easier way to target people. So we work on and stress on that at all times. I think the other thing is that hackers also go where the money is, right? And they know, if they read about it or read about the assets, they read about a perceived lifestyle, that's also changing.
(DESCRIPTION)
Slide: Cost of Cyber Losses - Not Including Reputation. A bar graph on the left is titled, Cybercrime Expected to Skyrocket. Estimated annual cost of cybercrime worldwide in trillion U.S. dollars. It runs from 2018 to 2028 with a bar for each year, growing steadily from 0.86 to13.82. The years 2020, 2.95, 2024, 9.22, and 2028, 13.82, are highlighted. Text: 2019, $1.16 trillion. 2024, $9.22 trillion. If it were an economy, it would be considered the third largest behind the United States and China.
(SPEECH)
In fact, cyber crime is even expected to reach, I think it's the third largest economy at this point, and it's expected to reach $9.2 trillion in the next, I think, even at the end of 2024, and is expected to grow about 70% in the next five years. So it's not going to get better. It's only going to be getting worse.
Let's talk a little bit about law enforcement, how it's so hard to catch these people, these criminals? Tell me a little bit about that from your vantage point.
So on the physical side, using that digital footprint to then target, if you will. The other piece of the exposure is that the fabric of our society is changing the West in general. And what is expected of leadership, what is expected of our governments, what is expected of our politicians, has led to an environment where I do think that law enforcement feels hampered. I do think that you're not going to receive and/or see the response you might have seen 20, 30 years ago, in many cases. In addition, you're seeing that, to your earlier point, if you want to get rich, you go where the money is, if you will.
Ultimately, there used to be, society had red lines. There were places you didn't go. There were places that criminal organizations avoided. Now it's the exact opposite. If you think everything from flash mobs to the Chilean dinner groups to most recently, the NFL players being robbed when they're at away games. Again, because there's a digital footprint, you know they're physically gone. All those are simple examples where you can be targeted. And again, if it's not a serious crime, law enforcement might not be as responsive or have the bandwidth or the capacity to investigate and put the effort and time into these things that they might have years and years ago.
So I do think the environment's changed where the response is different. And now, simply put, you're being targeted based on that ability to find you, to fix, and then go after your assets.
Let's pivot to work environments. Corporations and businesses have certainly changed how they think about cybersecurity, in which it's much more at the forefront on how they reflect on risk and security. Most cyber attacks are targeting businesses of all sizes, but small and medium sized businesses specifically are often more at a loss because they don't have the layers of security and protection that larger organizations have. When we meet with businesses, we certainly recommend that readiness tests and to include cyber assessments as a budget, a line item. This is no longer just something that is just in the background as technology. But you really have to think of cyber in the forefront.
From a physical security risk, how has it changed, how have you seen it change?
So I think in multiple layers. Corporations big and small, typically, we would focus on putting in a layer of security for people that travel. So think medical evacuation, car and driver, executive protection, things like that. But it was mostly focused on international travel to what you would consider medium to high risk countries. I think the pivot that's happening right now is there is an element of an aha moment, and you see that as part of what's happening with the UnitedHealthcare CEO and major events around the world. No one saw, whether it's a natural disaster like Asheville, North Carolina, and what happened with the hurricanes, no one saw New Orleans, what just occurred, no one saw what just happened in Germany at the Christmas market.
When you combine all of that, the psyche of corporate America, and boards in general are starting to now realize anything can happen anywhere, and that we're going to have to have layers of physical security beyond just international travel to medium, and high risk countries. The reality is, anything can happen anywhere. No one saw the 2015 Paris attacks in Paris. If I asked your average Westerner, is Paris a great city? Is it safe? People say it's a city of lights. A city of love. Of course it's wonderful. There's an underbelly and current in that part of the world, and it makes it a target.
If I asked you, what do you think about the safety and security of Maui? People would say it's paradise. Yet 100 people burned to death. Billions of dollars in losses. Things dramatic that are exposed in look quite dramatic in the news. The reality is people are realizing that you're going to have to have a physical security response, and it doesn't matter when, where, or how. And now that's being exposed within the United States. And I do think there's a material pivot, even within the United States, realizing that there are going to have to be more sophisticated systems and boards are going to start treating c-suites as an asset, and therefore start mandating these layers of security for those c-suite members, and their high volume travelers.
No, I think that's certainly that makes sense, certainly for a lot of the larger, businesses, and corporations. How do you think this might also relate to a smaller organization, such as a family office. Yeah, when you think about family offices or a private equity firm, they're law firms. They don't typically have large administrative staffs. They might not have an HR director. They might have someone dual hatted. They might not have a chief security officer.
With the family office that's certainly the case. Multiple people would be dual headed. And there might not be a specialist in cyber in-house. It might be outsourced. They might not have an in-sourced chief security officer. It's outsourced or some version of that. So the trick in all of those cases is to, number one, look at all of the different from insurance down to those vendors and those services. And then synchronizing them.
What you don't want to do or be faced with at three o'clock in the morning as a family office or a smaller firm is you now have an issue with an individual from the firm that has a material problem somewhere in the world or even right here in the United States. So when you think about that, you don't want to be trying to scramble and figure out what is the solution? Who do I call? Is it a vendor? Is it insurance? How am I going to solve this problem?
So the trick is to synchronize all of those assets, integrate them where you can. And then have a playbook that's very simplified. You don't want a 300 page document for a crisis reaction plan.
No.
You want 10 to 15 slides, if you will, or 10 to 15 pages that are bold highlights of exactly how you're going to work your way through a kidnapping, a material medical issue, a natural disaster, terrorism, or someone stranded potentially in a conflict zone. You want a simple outline. You want to who you're going to call, what that response will be, and what the expectation should be.
When we look at businesses, I think from a cybersecurity perspective, we always suggest a holistic assessment as well, to understand, not only is the network secure, a lot of people leave it at just a penetration test. But we suggest, going much deeper into an assessment of how do I physically access a building? How can I socially engineer your employees? And things like that. Because getting into a business, if I do want to disrupt, it can happen in so many different ways.
I think one of the things that we are really seeing a shift in which you alluded to a little bit before, is security now also having a place at the boardroom table. Talk to me a little bit about that on what you're also seeing from boards.
So very directly, as I kind of alluded to earlier, is boards are being forced. If you think about your average age of a board member in larger corporations, they're older. Cyber is a foreign thing to many boards, and it's been a problem because they haven't leaned into it hard enough. They haven't taken it seriously enough. Now there's no option. When you're looking at $9 trillion in losses globally through 2024, and now accelerating to $15 trillion in losses in a four-year period, as you talked about, it's the equivalent of the third largest economy in the world. I don't think most executives think that way. And that's being alluded.
Number two, as we described earlier, I think boards are being forced about thinking about their c-suite members as an asset. And that extends to their lifestyle, that extends to their primary home, their vacation home, their travel. And then this is what people really don't think through, is the soft underbelly of many of your c-suite members and your high exposure employees, if you will, is the family members. If you think about, I'm not going to attack them directly, whether it's physically or digitally, but I'm going to go after a spouse or children. And when you think about spouse and children, social media is a huge exposure.
There's so much being forecasted out there. There's so much information in near real time. So kind of the golden rule of this with family members in general is, you don't want to forecast your travel, your vacation. Don't do anything in real time. If you go on a trip to the Med, you want to put on 2,000 photos on your Facebook? You do it, but you do it after the trip. Nothing in near real time.
So when you think through all those things, I think boards are being forced to think about all of that security. And then at the corporate level, on a global stage, I do think they're having to really think through that global supply chain. And how do I minimize that exposure in Asia? And if I do move it to other parts of Asia or Mexico and nearshore. Now we need to talk about the realities of the threat in Mexico, for example, or Central America, or Latin America in general.
There's a whole series of different threat vectors that's different than Asia. That you can't just move your supply chain and assume that it'll be the same environment. It's completely different. So I think all of those things are being unwound. And I think it's now top of mind, it's forefront, and there really is not an option because what you do now is going to affect the next 20 or 30 years as you operate globally.
And I think, really what we see is that cyber and physical security representatives have to have a seat at the table. This is no longer something that we call upon afterwards, but they have to be in the decisions right up front.
No question. We're seeing it in real time where just prior to COVID, there was a movement that was energy and momentum that had started where chief security officers, chief information security officers are now sitting at that board table in the room supporting the board, providing information, providing details, providing forecasts in a way that they had not in the past. Now that we're in this post-covid world, that energy is returned. And now global events from the conflicts to what's happening right here in the United States, to what you're seeing with the fabric of the country, all of those things are driving boards to now want to bring in that subject matter expert with both digital and physical security.
Absolutely let's pivot to travel. Whether we go to out of the way places or to the vacation home that we're used to visiting. Travel risk has also changed. Like you said, we have family members that are posting way too much about where we're going, what we're doing. What are some of the biggest mistakes that you see clients make around travel?
So there's really about, there's a top five. We talked about several of these topics, but I'll frame it this way. If you don't read insurance and you have travel insurance for medical evacuation or security evacuation, if you don't understand how that platform works, and you don't read the fine print on the restrictions, then you're inevitably going to be disappointed. We receive calls consistently going, I thought I had this covered, but now the environment's changed, whether it's a natural disaster or conflict, so on and so forth, where now I don't actually have anything, and I need help.
So the first primary mistake is you really need to understand what you're covered for, and what the environment, and the restrictions are so you can receive that service. Focus primarily on medical and evacuation services.
Sure, sure.
Two, I think when you think about your average traveler, they should not be trusting on their cell phone and their laptop, the public Wi-Fi in international hotels, at your international eatery, at your international coffee place. All of those things in the public space just create exposure into your life, into your company, into your family. I don't think that most of your travelers are thinking about simple things, simple to us, and that we've had Westerners detained in China, in Russia, in India, so on and so forth, based on the political and changes within that country, and changes in-laws, and people aren't tracking it.
We get six to eight cases a year of Westerners traveling to India with tracking devices, satellite devices. Satellite phones are illegal. Anything that has a satellite capability is illegal in India, and they will detain you. And they will detain you for days, potentially.
Really?
And you need someone that you can call outside of the Embassy because if it goes into the government channels, inevitably now it's going to slow down, become more bureaucratic, and take much more time. So you really need to understand the environment you're going to. What are the local laws, what is prohibitive, what's not, and so on and so forth. And then lastly, I think most of our clients in family offices really have to think through if there is someone kidnapped, if there is someone stranded in a wildfire, an earthquake, a hurricane, a tsunami or a conflict zone.
I'm always stunned by the veracity of how people are so surprised when these things happen. Because back to your earlier point, most people, human nature dictates--
It's never going to happen.
--that's on the news. It's never going to happen to me. And then when it does, they're stunned and they realize they have massive exposure, both for their family and/or their company. So working through those systems, ultimately leading to this conclusion. If you cannot answer the questions, what do I do if someone's kidnapped? What do I do if I'm hacked? What do I do if I'm stranded? What do I do if I have a material medical issue and don't want to receive medical treatment in that part of the world? If you can't answer those questions--
Before you go.
--before you go, then don't get on the airplane, or don't get on the boat, or don't get on the train. And that's really the simplistic framework of these things. And the last data point, when you think about, you can Google the FBI's kidnap and ransom data for Mexico, for example, close border friend here. When you think about that, there's about 250 to 300 Americans that are kidnapped in Mexico every year as a data point. That's reported. The reality is we estimate it's well over 700 because the majority of this is all handled privately, so it never reaches the FBI stats. The FBI will openly admit that.
So when you think about that, when you think about the level of risk, and human nature dictating, that'll never happen to me. I go to Cabo, I go to the nice part of Mexico City, so on and so forth. The reality is this happens every day, every month, at a pace that we've never seen before. And the estimate in looking over the horizon is this only gets worse. So having a plan before you get on that aircraft or cross that border, matters. And if you do have that plan and nothing ever happens, you're in great shape.
You're in great shape.
But if something occurs, now you don't have to panic and you don't have to--
Yeah, and I think preparedness up front, we also suggest to clients that you need to be using the VPNs, you need to be embracing these tools. Privacy-oriented browsers. You need to be using Faraday bags. Things that will help prevent your digital security from becoming exposed so that your physical security stays secure. Great, I think we definitely all need more situational awareness. Like, people are constantly on their phones and not really aware of what's going on around them. And that's also something.
Let's pivot actually to the home environment. In our home, we often expect, that's where we're secure, that's where we feel comfortable, but we often see certainly a lot of these home environments very compromised. I recently had a client who was very concerned about security. Their family business was going to be sold, and they knew that there would be news about this. And were worried about the publicity.
The client said to me, I don't really know what I need, but I need everything because it was going to be a large amount of wealth. What we first did was we helped them secure their personal environment, reduce their digital footprint, come in and do a home, Wi-Fi assessment, and also look at their AV system, and their physical security of the home. That was it. Sure enough, when the news did come out about the family's sale of the business, her home network was immediately attacked. And so we were very happy that we were able to help facilitate that.
I remember, I think another incident that I think you once shared with me where a client had it was published that they had a certain amount of cryptocurrency. And the perceived wealth of this person, it was in the millions, so people showed up on their lawn. And once the digital or the security is known, that's also where physical security comes in.
Let's expand a little bit on how people are, what's happening in the home environment. Let's talk a little bit about that.
So when you think about your home or a vacation home, they both have requirements in this environment that we're living in because of the digital footprint. As to your point, people want to feel secure in their home. Totally understand it's the one place you should be able to let your hair down and live your life and be with your family. Ultimately, when you think about the threat to your home or vacation home, not only is it everything you just described and did for your client on the digital side, which good on you for being prepared for them. When you transition that if you have help around the house or you're doing large reconstruction projects or updates on a home, there's immediate exposure. When you think about nannies, cooks, pool assistants, and construction, you want to know who's coming in and out of your space. You need to be able to track that physical transaction.
You need the background checks of those people. You need to who's in your space. And then you've got to be able to track that interaction.
Two, as you described it, having all of those systems, the, quote unquote, smart home technology also creates exposure. If everything is running off of Wi-Fi, no one's checked your router, the security of the router, the encryption of the router. If no one's checked, the encryption of the Wi-Fi to connect with all the systems, from the air conditioning to the TV to the garage door, so on and so forth, you have exposure.
When you think about camera surveillance and access control, it's great that people are buying at scale these systems from a Home Depot or Lowe's that you can do it yourself. The issue is, if you're in a meeting, you're on an airplane, you're on vacation, you don't have the ability to now secure your own facility, if you will. You've got to have it professionally monitored. It's got to be in real time. And as you look over the horizon, there's going to be incredible advancements through AI and physically securing your residence, your vacation home and your space. And people with family offices should be thinking about all of those things.
Absolutely.
And it's got to be monitored in real time. All of this is about speed of response. And all of this is about putting out a sensor, if you will, to pick up a potential threat as far out as humanly possible.
Yeah.
All those things matter in your home space, if you will. And then for your vacation homes, having that monitored with a remote guard system so that every hour on the hour it's checked on matters so you don't have exposure where something occurs and you don't about it for 6, 8, 12 weeks. This happens quite often. So on and so forth. So all those things matter when you think about home security and what your family is doing online and what they're doing physically.
Do you think, is wealth being targeted in the West? I mean, typically we hear about these things in perhaps other areas of the world. Tell me a little bit about in the US, how is wealth being targeted, particularly in the homes.
So again, you think about those red lines we talked about earlier. There were areas in every major city where there was wealth created in this country. There was a bit of a red line that things didn't occur there. People avoided it. Criminal groups avoided those areas. Now it's the exact opposite. So 60 Minutes did a great piece on this. You can Google it and watch the story. It's 15 minutes long.
But they've profiled a Chilean armed robbery group that has figured out a way to target wealth in the United States, city by city. They typically will put up drones over the House and monitor for weeks at a time. They will typically pay someone off that has access in and out of the home, as we described earlier, whether that's construction, nanny, cook, so on and so forth. They will identify the assets in that home before they ever go in, and they will collect data for months. Once they understand the lifestyle, the travel schedule, when people are there, when they're not, then they will strike.
And to your earlier point, they're utilizing the most sophisticated sensors that you would think only governments have access to. And they're jamming Wi-Fi systems. They're shutting down camera surveillance systems, if they're not secure and encrypted. And they're shutting down the ability for the alarm system to go out and alert. So when you think of that, and they're so successful, and so emboldened that they're leaving coins in the House as a signature to say, we were here.
So in addition, you're going to see in the news cycle, and I'm not picking on Chile or the Chileans by any means. When you hear about the gang activity from Venezuela, the movement of cartels and the expansion of cartels in the United States, the expansion of the Chilean dinner gang, if you will, or what you've seen in the news with the NFL players being targeted when they're away, all of these are interconnected. There's connective tissue to all of these operations.
Ultimately leading to this conclusion. Wealth is being targeted, your digital footprint matters. The ability to lock down your home and encrypt those systems, the ability to control access of who's coming in and out of your home, and the ability to who is in your space with those background checks, and sitting down with those people and ensuring that they're trustworthy and they don't have affiliations with some of these kinds of organizations, now matters in a way it simply didn't in the past.
Risk certainly has a very different face than it did even 5, 10 years ago. Dale, we covered a lot of ground today, talking about cyber and physical risks from so many different angles, but particularly around work, home and travel, and how it affects the family. We've covered a lot of points. What additional key takeaways might you want to add.
So I think to conclude, I would simply say at a macro level, as we opened with geopolitics and geoeconomics. My message to everyone is, you should anticipate 5 to seven major global disruptive events a year.
(DESCRIPTION)
Slide: Key Takeaways for Reducing Risk Across Work, Home, and Travel. Cyber and physical risks are interconnected. If you are not surprised, you'll be prepared. Anticipate geopolitical and cyber events before they happen. Have an emergency plan in place. Engage professionals and experts beforehand.
(SPEECH)
Whether that's terrorist attacks, whether that's a war zone, whether that's natural disaster. No one really believed the Russians were going to roll tanks into Ukraine until it happened. No one saw what happened coming out of Gaza with Hamas going into Israel.
When the most sophisticated human Intelligence agency in the world and the Western intelligence platform in the world, misses things like this. No one saw the 2015 terrorist attacks. No one saw the 2017 Turkey coup. Certainly no one saw what happened in New Orleans recently. All of these things matter. So the mindset should be, number one, we shouldn't be surprised.
We should anticipate that there are going to be five to seven major events this year that are going to affect all of our lives, both corporately and individually. Start there. And don't be surprised.
And don't be surprised.
That's the first trick. If you're not surprised, then you'll be prepared. Two, I think looking forward when you think about, how am I going to protect my company?
(DESCRIPTION)
Slide: Key Takeaways for Reducing Risk Across Work, Home, and Travel. Cyber and physical risks are interconnected. If you are not surprised, you'll be prepared. Anticipate geopolitical and cyber events before they happen. Have an emergency plan in place. Engage professionals and experts beforehand. For Business slash Family Offices. Give security a seat at the table, as part of readiness discussions - both cyber and physical security experts. Have an emergency plan in place and stress test your plan. Engage with security partners: Establish relationships with managed service providers, legal advisors, and PR firms to have support ready in case of a crisis. Limit public exposure: Manage the digital footprint of executives and the company to reduce exposure to potential threats. For Individuals slash Families. Implement cyber defenses and privacy tools to keep your and your families risk exposure to a minimum (i.e., VPNs. privacy browsers, password managers, etc.). Secure digital footprint and reduce family members social media exposure. Maintain or regain control of your digital footprint to reduce physical security compromise. Secure the home network, and address vulnerabilities. Plan for emergencies before traveling: Develop a plan for how to respond to emergencies, including medical evacuations and natural disasters.
(SPEECH)
As you've described over and over this morning, basically the physical and digital footprint matters. You need those subject matter experts. You can't wait any longer. You've got to bring them in, and you have to put the effort, time and expense into it up front to be truly prepared. And to your point, stress test all of those systems.
So I think if boards are doing and thinking in those terms from a geopolitical level down to the physical and digital and really looking at their assets and trying to get ahead of the next 5 to seven events or the next hack, or the next kidnap and ransom, or the next terrorist attack, they're on the right path at the corporate level. No question.
For individuals, we also, there are many things that companies can do, but I think it also is a little bit eye-opening for individuals. And there are a lot of things that one can do oneself. A family can shore up their cyber defenses. I always say, get back to basics. There are some things that are very obvious, but it's always amazing how cyber criminals are able to get access to these things. First, work to maintain or regain your privacy. And some people say oh, everything's already out there. What do I care?
You can work to actually minimize that. And just because you were lax in the past, doesn't mean that you continue with those kind of bad habits in the future. There are a lot of things that you can put in. Like we said earlier, using VPNs, privacy-oriented browsers, search engines, passwords, there's so many digital things. But also making sure that your networks are secure, both at home and at work, because it's always amazing with, as we were saying earlier, with all the smart devices that we have in our house, how easy it is to access those and access a home environment. But I think we all need to be better prepared.
Anything else you want to add to that from an individual perspective, you think?
So I think, as described earlier, when you think about protecting your family, really look at your children's activity, your spouse's activity on social media. Lock that down. It's a simple thing, to your point, you can do this. This is self-care. Gain your privacy back and lock those systems down, and make sure your home is locked down from every aspect. You can do that yourself. You don't need to be probed or led in certain directions. Not hard to do.
I think, when thinking about a family office or a family on the travel side, again, the five golden rules. Don't get on that plane, train, or boat if you can't answer those key questions. If you've gone through that homework, and you have emergency contacts, and you have a family office that has that playbook, you're in a very strong position, and you won't be surprised when that next shoe drop hits. And it now does affect you as a family. So I think that's the proper mindset. And if you adopt that mindset and you anticipate these things and have a plan, you're in great shape.
Absolutely. Thank you so much, Dale.
(DESCRIPTION)
Slide: Resources. Text: Thank you so much for joining us for this informative discussion on rethinking risk. At J.P. Morgan, our team is always here to help you navigate the most complex situations. Reach out to your J.P. Morgan team to learn more. For more information and resources on cybersecurity, please reach out to your Banker.
(SPEECH)
You shared a great deal of insight today on today's call. I want to remind our clients that the cyber advisory team can work directly with your bankers and advisors to provide you an in-depth cyber educational session, as well as additional resources. I do want to remind everyone that cyber threats pose hazards to us all, and it's important to be prepared. Cyber criminals are getting more sophisticated and better what they do daily.
Again, Dale, Thank you for your time and a big thank you to all that joined today. I always learn something new every day, and I'm sure that our clients have as well. Thank you so much. And stay safe out there.
(DESCRIPTION)
Text: J.P.Morgan Private Bank. KEY RISKS. This material is for information purposes only, and may inform you of certain products and services offered by private banking businesses, part of JPMorgan Chase & Co. ("JPM"). Products and services described as well as associated fees, charges and interest rates, are subject to change in accordance with the applicable account agreements and may differ among geographic locations. Not all products and services are offered at all locations. If you are a person with a disability and need additional support accessing this material please contact your J.P. Morgan team or email us at accessibility dot support at j p morgan.com for assistance. Please read all Important Information. GENERAL RISKS & CONSIDERATIONS. Any views, strategies or products discussed in this material may not be appropriate for all individuals and are subject to risks. Investors may get back less than they invested, and past performance is not a reliable indicator of future results. Asset allocation/diversification does not guarantee a profit or protect against loss. Nothing in this material should be relied upon in isolation for the purpose of making an investment decision. You are urged to consider carefully whether the services, products, asset classes (e.g. equities, fixed income alternative investments, commodities etc.) or strategies discussed are suitable to your needs. You must also consider the objectives, risks, charges, and expenses associated with an investment service, product or strategy prior to making an investment decision. For this and more complete information including discussion of your goals/situation contact your J.P. Morgan team.
(SPEECH)
Thank you for joining us.
(DESCRIPTION)
Text: NON-RELIANCE. Certain information contained in this material is believed to be reliable; however, JPM does not represent or warrant its accuracy, reliability or completeness, or accept any liability for any loss or damage (whether direct or indirect) arising out of the use of all or any part of this material. No representation or warranty should be made with regard to any computations, graphs, tables, diagrams or commentary in this material which are provided for illustration reference purposes only. The views, opinions, estimates and strategies expressed in this material constitute our judgment based on current market conditions and are subject to change without notice. JPM assumes no duty to update any information in this material in the event that such information changes. Views, opinions, estimates and strategies expressed herein may differ from those expressed by other areas of JPM, views expressed for other purposes or in other contexts, and this material should not be regarded as a research report. Any projected results and risks are based solely on hypothetical examples cited, and actual results and risks will vary depending on specific circumstances. Forward-looking statements should not be considered as guarantees or predictions of future events. Nothing in this document shall be construed as giving rise to any duty of care owed to, or advisory relationship with, you or any third party. Nothing in this document shall be regarded as an offer, solicitation, recommendation or advice (whether financial accounting legal, tax or other) given by J.P. Morgan and/or its officers or employees, irrespective of whether or not such communication was given at your request J.P. Morgan and its affiliates and employees do not provide tax legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any financial transactions.
(SPEECH)
Prior to making financial or investment decisions, you should speak with a qualified professional in your JP Morgan team.
(DESCRIPTION)
Text: YOUR INVESTMENTS AND POTENTIAL CONFLICTS OF INTEREST. Conflicts of interest will arise whenever JPMorgan Chase Bank, N.A. or any of its affiliates (together, "J.P. Morgan") have an actual or perceived economic or other incentive in its management of our clients portfolios to act in a way that benefits J.P. Morgan. Conflicts will result for example (to the extent the following activities are permitted in your account) (1) when J.P. Morgan invests in an investment product such as a mutual fund, structured product, separately managed account or hedge fund issued or managed by JPMorgan Chase Bank, N.A. or an affiliate such as J.P. Morgan Investment Management Inc.; (2) when a J.P. Morgan entity obtains services including trade execution and trade clearing from an affiliate; (3) when J.P. Morgan receives payment as a result of purchasing an investment product for a client's account or; (4) when J.P. Morgan receives payment for providing services (including shareholder servicing recordkeeping or custody) with respect to investment products purchased for a client's portfolio. Other conflicts will result because of relationships that J.P. Morgan has with other clients or when J.P. Morgan acts for its own account. Investment strategies are selected from both J.P. Morgan and third-party asset managers and are subject to a review process by our manager research teams. From this pool of strategies, our portfolio construction teams select those strategies we believe fit our asset allocation goals and forward-looking views in order to meet the portfolio's investment objective. As a general matter, we prefer J.P. Morgan managed strategies. We expect the proportion of J.P. Morgan managed strategies will be high (in fact up to 100 percent) in strategies such as, for example, cash and high-quality fixed income, subject to applicable law and any account-specific considerations.
(SPEECH)
This concludes today's webcast. You may now disconnect.
(DESCRIPTION)
Text: While our internally managed strategies generally align well with our forward-looking views, and we are familiar with the investment processes as well as the risk and compliance philosophy of the firm, it is important to note that J.P. Morgan receives more overall fees when internally managed strategies are included. We offer the option of choosing to exclude J.P. Morgan managed strategies (other than cash and liquidity products) in certain portfolios. The Six Circles Funds are U.S. registered mutual funds managed by J.P. Morgan and sub-advised by third parties. Although considered internally managed strategies, JPMC does not retain a fee for fund management or other fund services. LEGAL ENTITY BRAND & REGULATORY INFORMATION. In the United States, bank deposit accounts and related services such as checking savings and bank lending, are offered by JPMorgan Chase Bank, N.A., Member FDIC. JPMorgan Chase Bank, N.A. and its affiliates (collectively J.P.M.C.B.) offer investment products which may include bank managed investment accounts and custody as part of its trust and fiduciary services. Other investment products and services such as brokerage and advisory accounts are offered through J.P. Morgan Securities LLC (J.P.M.S.), a member of FINRA and S.I.P.C. -- Insurance products are made available through Chase Insurance Agency, Inc. (C.I.A.), a licensed insurance agency, doing business as Chase Insurance Agency Services, Inc. in Florida. J.P.M.C.B., J.P.M.S., and C.I.A. are affiliated companies under the common control of JPM. Products not available in all states.
LEGAL ENTITY. BRAND & REGULATORY INFORMATION. In Germany, this material is issued by J.P. Morgan S.E., with its registered office at Taunustor 1 (TaunusTurn) 6 0 3 1 0 Frankfurt am Main, Germany. authorized by the Bundesanstalt für Finanzdienstieistungsaufsicht (BaFin) and jointly supervised by the BaFin, the German Central Bank (Deutsche Bundesbank) and the European Central Bank (E.C.B.). In Luxembourg this material is issued by J.P. Morgan S.E. - Luxembourg Branch, with registered office at European Bank and Business Centre, 6 route de Treves L dash 2 6 3 3, Senningerberg, Luxembourg, authorized by the Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin) and jointly supervised by the BaFin, the German Central Bank (Deutsche Bundesbank) and the European Central Bank (E.C.B.); J.P. Morgan S.E. - Luxembourg Branch is also supervised by the Commission de Surveillance du Sectour Financior (C.S.S.F.): registered under R.C.S Luxembourg B 2 5 5 9 3 8. In the United Kingdom this material is issued by J.P. Morgan S.E. - London Branch registered office at 25 Bank Street, Canary Wharf, London, E 1 4 5 J P, authorized by the Bundesanstalt für Finanzdienstioistungsaufsicht (BaFin) and jointly supervised by the BaFin, the German Central Bank (Deutsche Bundesbank) and the European Central Bank (ECB): J.P. Morgan S.E. - London Branch is also supervised by the Financial Conduct Authority and Prudential Regulation Authority. In Spain, this material is distributed by J.P. Morgan S.E., Sucursal en Espana with registered office at Paseo de la Castellana 31, 2 8 0 4 6, Madrid, Spain, authorized by the Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin) and jointly supervised by the BaFin, the German Central Bank (Deutsche Bundesbank) and the European Central Bank (ECB): J.P. Morgan S.E. Sucursal en Espana is also supervised by the Spanish Securities Market Commission (C.N.M.V.): registered with Bank of Spain as a branch of J.P. Morgan S.E. under code 1 5 6 7. In Italy, this material is distributed by J.P. Morgan S.E. - Milan Branch, with its registered office at Via Cordusio, number 3, Milan, 2 0 1 2 3, Italy, authorized by the Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin) and jointly supervised by the BaFin, the German Central Bank (Deutsche Bundesbank) and the European Central Bank (ECB); J.P. Morgan S.E. - Milan Branch is also supervised by Bank of Italy and the Commissione Nazionale per le Società e la Borsa (CONSOB) registered with Bank of Italy as a branch of J.P. Morgan S.E. under code 8 0 7 6; Milan Chamber of Commerce Registered Number: R.E.A. M.I. 2 5 3 6 3 2 5.
In the Netherlands, this material is distributed by J.P. Morgan S.E. - Amsterdam Branch, with registered office at World Trade Centre, Tower B. Strawinskylaan 1 1 3 5, 1 0 7 7 X.X., Amsterdam, The Netherlands, authorized by the Bundesanstalt für Finanzdienstioistungsaufsicht (BaFin) and jointly supervised by the BaFin, the German Central Bank (Deutsche Bundesbank) and the European Central Bank (E.C.B.): J.P. Morgan S.E. - Amsterdam Branch is also supervised by De Nederlandsche Bank (D.N.B.) and the Autoriteit Financièle Markten (A.F.M.) in the Netherlands Registered with the Karner van Koophandel as a branch of J.P. Morgan S.E. under registration number 7 2 6 1 0 2 2 0. In Denmark, this material is distributed by J.P. Morgan S.E. - Copenhagen Branch filial at J.P. Morgan S.E., Tyskland, with registered office at Kalvabod Brygge 39-41 1 5 6 0 Kebenhavn V. Denmark authorized by the Bundesarstalt für Finanzdienstieistungsaufsicht (BaFin) and jointly supervised by the BaFin, the German Central Bank (Deutsche Bundesbank) and the European Central Bank (E.C.B.): J.P. Morgan S.E. - Copenhagen Branch filial of J.P. Morgan S.E., Tyskland is also supervised by Finansitsynet (Danish F.S.A.) and is registered with Finansitsynet as a branch of J.P. Morgan S.E. under code 2 9 0 1 0. In Sweden, this material is distributed by J.P. Morgan S.E. - Stockholm Bankfilial, with registered office at Hamngatan 15, Stockholm, 1 1 1 4 7, Sweden, authorized by the Bundesenstalt für Finanzdienstieistungsaufsicht (BaFin) and jointly supervised by the BaFin, the German Central Bank (Deutsche Bundesbank) and the European Central Bank (E.C.B.): J.P. Morgan S.E. - Stockholm Bankfillal is also supervised by Finansinspektionen (Swedish F.S.A.): registered with Finansinspektionen as a branch of J.P. Morgan S.E. -- In Belgium this material is distributed by J.P. Morgan S.E. - Brussels Branch with registered office at 35 Boulevard du Régent 1 0 0 0, Brussels, Belgium, authorized by the Bundesanstalt für Finanzdienstieistungsaufsicht (BaFin) and jointly supervised by the BaFin the German Central Bank (Deutsche Bundesbank) and the European Central Bank (E.C.B.): J.P. Morgan S.E. Brussels Branch is also supervised by the National Bank of Belgium (N.B.B.) and the Financial Services and Markets Authority (F.S.M.A.) in Belgium; registered with the N.B.B. under registration number 0715.622.844. In Greece, this material is distributed by J.P. Morgan S.E. - Athens Branch with its registered office at 3 Haritos Street, Athens, 1 0 6 7 5, Greece, authorized by the Bundesanstalt für Finanzdiensticistungsaufsicht (BaFin) and jointly supervised by the BaFin, the German Central Bank (Deutsche Bundesbank) and the European Central Bank (E.C.B.).
J.P. Morgan S.E. -Athens Branch is also supervised by Bank of Greece registered with Bank of Greece, a branch of J.P. Morgan S.E. under code 124; Athens Chamber of Commerce Registered Number 1 5 8 6 8 3 7 6 0 0 0 1, VAT Number 9 9 8 7 6 5 7 7. In France, this material is distributed by JPMorgan Chase Bank N.A. Paris Branch registered office at 14 Place Vendoma, Paris, 7 5 0 0 1, France, registered at the Registry of the Commercial Court of Paris under number 0 4 1 and. Here the slide cuts off.
This communication is an advertisement for the purposes of the Markets in Financial instruments Directive (M.I.F.I.D. II) and the Swiss Financial Services Act (FINSA). Investors should not subscribe for or purchase any financial instruments referred to in this advertisement except on the basis of information contained in any applicable legal documentation, which is or shall be made available in the relevant jurisdictions (as required). In Hong Kong. this material is distributed by J.P.M.C.B., Hong Kong branch. J.P.M.C.B., Hong Kong branch is regulated by the Hong Kong Monetary Authority and the Securities and Futures Commission of Hong Kong. In Hong Kong, we will cease to use your personal data for our marketing purposes without charge if you so request. In Singapore, this material is distributed by J.P.M.C.B., Singapore branch. J.P.M.C.B., Singapore branch is regulated by the Monetary Authority of Singapore. Dealing and advisory services and discretionary investment management services are provided to you by J.P.M.C.B., Hong Kong/Singapore branch (as notified to you). Banking and custody services are provided to you by J.P.M.C.B. Singapore Branch. The contents of this document have not been reviewed by any regulatory authority in Hong Kong, Singapore or any other jurisdictions. You are advised to exercise caution in relation to this document. If you are in any doubt about any of the contents of this document, you should obtain independent professional advice. For materials which constitute product advertisement under the Securities and Futures Act and the Financial Advisers Act, this advertisement has not been reviewed by the Monetary Authority of Singapore. JPMorgan Chase Bank N.A., a national banking association chartered under the laws of the United States. and as a body corporate its shareholder's liability is limited. With respect to countries in Latin America, the distribution of this material may be restricted in certain jurisdictions.
We may offer and/or sell to you securities or other financial instruments which may not be registered under, and are not the subject of a public offering under, the securities or other financial regulatory laws of your home country. Such securities or instruments are offered and/or sold to you on a private basis only. Any communication by us to you regarding such securities or instruments, including without limitation the delivery of a prospectus, term sheet or other offering document, is not intended by us as an offer to sell or a solicitation of an offer to buy any securities of instruments in any jurisdiction in which such an offer or a solicitation is unlawful. Furthermore, such securities or instruments may be subject to certain regulatory and/or contractual restrictions on subsequent transfer by you, and you are solely responsible for ascertaining and complying with such restrictions. To the extent this content makes reference to a fund, the fund may not be publicly offered in any Latin American country, without previous registration of such fund's securities in compliance with the laws of the corresponding jurisdiction.
JPMorgan Chase Bank N.A. (J.P.M.C.B.N.A.) (A.B.N. 4 3, 0 7 4, 1 1 2, 0 1 1 slash A.F.S. License Number 2 3 8 3 5 7) is regulated by the Australian Securities and Investment Commission and the Australian Prudential Regulation Authority. Material provided by J.P.M.C.B.N.A. in Australia is to "wholesale clients" only. For the purposes of this paragraph the term "wholesale client" has the meaning given in section 7 6 1 G of the Corporations Act 2001 (Cth). Please inform us if you are not a Wholesale Client now or if you cease to be a Wholesale Client at any time in the future. J.P.M.S. is a registered foreign company (overseas) (A.R.B.N. 1 0 9 2 9 3 6 1 0) incorporated in Delaware, U.S.A., under Australian financial services licensing requirements, carrying on a financial Financial Services Licence (A.F.S.L.). Unless an exemption applies, J.P.M.S. is exempt from the requirement to hold an A.F.S.L. under the Corporations Act 2001 (Cth) (Act) in respect of financial services it provides to you, and is regulated by the S.E.C., FINRA, and C.F.T.C. under U.S. laws, which differ from Australian laws. Material provided by J.P.M.S. in Australia is to "wholesale clients" only. The information provided in this material is not intended to be, and must not be, distributed or passed on, directly or indirectly to any other class of persons in Australia. For the purposes of this paragraph the term "wholesale client" has the meaning given in section 7 6 1 G of the Act. Please inform us immediately if you are not a Wholesale Client now or if you cease to be a Wholesale Client at any time in the future. This material has not been prepared specifically for Australian investors. It may contain references to dollar amounts which are not Australian dollars; may contain financial information which is not prepared in accordance with Australian law or practices; may not address risks associated with investment in foreign currency denominated investments; and does not address Australian tax issues.
References to "J.P. Morgan" are to JPM its subsidiaries and affiliates worldwide. J.P. Morgan Private Bank is the brand name for the private banking business conducted by J.P.M. -- This material is intended for your personal use and should not be circulated to or used by any other person or duplicated for non-personal use, without our permission. If you have any questions or no longer wish to receive these communications please contact your J.P. Morgan team. Copyright 2025 JPMorgan Chase & Co. All rights reserved.
Logo: J.P.Morgan. Private Bank.
Discover effective strategies for managing increased cyber and physical risks in our interconnected world.
Published Jan 16, 2025
In this article
In this article
you may also like
-
Apr 23, 2024
How to spot impersonations, scams and deepfakes -
Mar 15, 2023
Recognizing email threats and social engineering
