Security experts recommend advisors use not only passwords, but a more stringent form of verification, known as “two-factor authentication,” for logging into every device and into every data collection system they control. Many advisors who have heard those proposals, however, respond that “two-factor authentication” can be cumbersome to implement and often prompts clients to complain about the delays and hassles those safeguards create.

“The simple fact that a lap top has a password doesn’t mean anything,” Stephen Ryder recently told an audience of financial advisors. Most likely, however, many advisors listening to him had in their possession laptops protected solely by one password.

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