Wealthy families must protect online reputations

As disinformation risks rise, early intervention is crucial, and anonymity is no longer a viable defence.

In today’s digital world, a wealthy family’s online reputation is both invaluable and fragile. First impressions are often shaped by a quick internet search, whether by business partners, philanthropic organisations, or financial institutions. A lack of online presence, or worse, misleading information, can undermine opportunities, security and a family’s legacy.

“It’s more dangerous to be anonymous than to have something out there,” says Sally Tennant, founder of London-based Acorn Capital Advisers and former private banking boss at Schroders. "If you have nothing online, it raises more flags and more question marks than if there is. It’s very easy for others to create a narrative about you, and then you lose control."

Ms Tennant likens online reputation to an “invisible asset” that provides stability in uncertain times. “Think of your reputation like a brand. It’s like investing in gold; it protects you when things go bad.”

Reputation is a key driver of financial opportunity. As wealth shifts to private markets, credibility shapes access to deals. Many family offices offer ‘patient capital’, but those with a strong public profile, proven leadership and a track record of value creation stand out, says Ms Tennant.

A robust online presence can enhance asset value, attract better partners and even serve as a protective shield in crises.

A lack of goodwill can make families vulnerable. The Barclay brothers, known for their secrecy, saw reputational damage escalate when their internal disputes became public, with no strong narrative to counter scrutiny.

The Sackler family, whose fortune was tied to the opioid crisis, saw their wealth become toxic, with institutions rejecting their donations. “No one gives big money away now without conducting reputational due diligence, even anonymous gifts are scrutinised,” warns Ms Tennant.

Beyond finance, reputation influences recruitment, staff retention, and personal security.

While anonymity is rarely possible, wealthy individuals can protect their privacy by managing risks, says Tim Robinson, partner at Schillings, a London-based reputation and privacy consultancy.

“Having no profile at all is unwise — you risk looking like a ghost, leaving a vacuum others may fill,” he warns. The best defence is not just discretion, but the ability to stand by your actions.

Digital speed and noise

Social media and online news have made spreading false or misleading information easier than ever. “The speed and noise of the digital world make the risk of harm greater than before,” says Mr Robinson, citing Mark Twain: “A lie can travel halfway around the world while the truth is still putting on its shoes.”

AI has accelerated misinformation, complicating reputational management. A decade ago, a sophisticated online attack required effort; today, AI enables rapid, widespread falsehoods at minimal cost. “We’ve seen chatbots hallucinate — fabricating details and even citing non-existent sources,” says Dave King, founder and CEO of Digitalis, a London-based online reputation management agency.

AI-driven deepfakes are an emerging threat. Whether intentional or not, false information can have serious consequences.

Ensuring accurate, well-curated biographical content ranks highly is a practical defence, adds Mr King.

Sensitive transitions

High net worth individuals and family offices are prime targets for disinformation campaigns.

“Competitors, disgruntled partners, and political adversaries often weaponise disinformation,” says Helena Shipman, a lawyer at global law firm Kobre & Kim. This is particularly true during sensitive transitions like mergers, acquisitions or divorces.

Identity theft and fraud are growing concerns.

AI-powered scams have seen criminals impersonate executives and defraud firms of millions. Some attacks are designed to trigger financial sanctions, as false links to Russia have shown. “Sanctions are often the goal,” Ms Shipman explains, noting that disgruntled business associates frequently orchestrate such campaigns.

Certain families are more vulnerable. “Families that display their wealth in an outlandish manner without a philanthropic presence may be more at risk,” believes family office adviser Ms Tennant. The source of wealth also matters — industries like mining or government contracting often face greater scepticism. “There’s a perception that wealth from these sectors lacks legitimacy, placing the burden of proof on the family.” Managing online reputation should be treated as a strategic investment or an insurance policy, she believes.

Yet, research from international multi-family office Stonehage Fleming shows that nearly 90 per cent of ultra-high net worth families fail to track their digital footprint. Instead of a structured approach, reputation management is often reduced to informal discussions.

Sophisticated families use specialist firms for continuous monitoring, says Digitalis’ Mr King, but at the very least, all families should take “a snapshot” of their digital footprint. This helps identify risks — both reputational and physical. Beyond the open web, families must also consider the ‘deep web’ — unindexed but still accessible content — and the ‘dark web’, where compromised data is often traded.

Behind the curve

For wealth managers, this represents an opportunity. “Advisers should raise awareness, host educational events, and connect families with reputational risk experts,” believes Ms Tennant.

If banks and wealth managers are trusted, they should use that trust to challenge clients and provide an external perspective. Wealthy families often live in “echo chambers” and may not fully appreciate digital risks, says Schillings’ Mr Robinson.

Private banks, however, are slow to engage. Some cite low client demand for protective services, though this may reflect a reluctance to acknowledge the issue, for fear of undermining trust, rather than lack of concern.

A small but growing number of bankers and advisers are referring clients for support, reports Digitalis’ Mr King. Some banks also request digital audits, assessing a family’s online footprint to identify potential vulnerabilities.

Concerns often originate from patriarchs or matriarchs uncertain about younger family members’ online activity. In these cases, advisers conduct digital audits, mapping a family’s entire online footprint. This helps identify what criminals or journalists could uncover and guides the next generation on managing their online visibility.

Education of the next generation

Over two decades, Bank of America’s financial education programme has expanded to include online security, identity theft, and cryptocurrency. What young and inexperienced clients say online can haunt them for years, says Rocky Fittizzi, head of full family engagement at Bank of America Private Bank.

With 92 per cent of employers checking social media, past posts can cost opportunities.

The programme also prepares families for digital crises. Mr Fittizzi recalls a client’s child caught in an online controversy while studying abroad. “It escalated quickly in the media, and the family struggled to control the narrative. Being proactive is key — a legacy built over decades can be undone in seconds.”

The bank’s approach involves parents, children and bankers. By guiding parents first, it fosters informed discussions within families, strengthening financial literacy and deepening long-term relationships with the next generation. “Teaching financial literacy is about more than money — it’s about instilling values,” adds Mr Fittizzi.

Peer-to-peer learning plays a role too, with national summits offering young clients firsthand insights from their peers. “Hearing firsthand stories from peers often has a stronger impact than hearing them from advisers.”

When reputational attacks happen, the first response is critical. “The longer false content stays online, the bigger it gets. If you want it removed, act fast,” warns Schillings’ Mr Robinson.

The internet is algorithmically optimised for negativity — sensationalist content drives engagement more effectively than positive news. Worse still, pay-to-play sites willingly spread disinformation for a price, providing unscrupulous individuals and organisations with a tool to damage rivals.

AI has further complicated the landscape. Large language models (LLMs) rely heavily on search engine rankings, amplifying critical or salacious stories over neutral or positive ones.  “These AI tools may seem powerful, but they often prioritise convenience — drawing from the most visible sources rather than the most accurate ones,” says Digitalis’ Mr King, citing recent internal research. “If inaccurate content appears in top search results or Wikipedia, AI-driven chatbots are almost certain to repeat it.”

Red flags flying

Falsehoods can enter compliance databases, affecting financial relationships and even triggering regulatory scrutiny, warns Kobre & Kim’s Ms Shipman. “Once a false narrative reaches a national newspaper, it can attract government attention.”

One disinformation tactic involves planting false information in compliance systems like World-Check and KYC (know your customer) databases. “The goal is to trigger red flags that lead banks to freeze assets or deny services — often with little chance of reversal,” explains Mr Shipman. Clients need a “crisis protocol” ready to challenge such campaigns.

With law enforcement often unresponsive, high net worth individuals are increasingly turning to private prosecutions — a rare legal option globally but available in England and Wales. The UK’s Online Safety Act, introduced in January 2023, aims to tackle harmful online content, including false statements designed to cause harm. “We expect far more prosecutions under this offence,” says Tamlyn Edmonds, a partner at UK private prosecution firm Edmonds Marshall McMahon.

However, limited resources and a lack of expertise hinder police action. “Unless classified as serious crime, these cases fall to the bottom of the pile. Yet, the impact on victims can be devastating and life-altering,” says Ms Edmonds. Fraudsters often evade justice because victims are either unaware of private prosecutions or too embarrassed to act — particularly in cases like romance scams, where reputational concerns deter reporting.

To strengthen enforcement, Ms Edmonds calls for greater collaboration between law firms and police. “We recognise law enforcement’s resource constraints, but better public-private cooperation, data-sharing agreements, and the use of police powers to gather evidence for private prosecutions would improve deterrence.”

Fraud remains a low priority for authorities, emboldening criminals. “The fraud statistics reveal just how little attention law enforcement gives to this issue.”

Fraud costs individuals more than $1tn globally each year, according to the latest annual report by the Global Anti-Scam Alliance, with AI and social media fuelling new scams. Generative AI can now create realistic images, scripts, videos, and voices in seconds, making it easier for scammers to deceive victims at scale.

Despite the scale of the problem, 70 per cent of victims do not report scams, and only 4 per cent manage to recover their losses.

Disinformation is a transnational issue demanding cross-border collaboration. "Without international co-operation, these problems will be tackled in a siloed way and only be partially effective," warns Kobre & Kim’s Ms Shipman. Key defensive tactics include search engine delisting to remove false content, legal action under defamation and data protection laws, and strategic PR. “Digital monitoring, legal teams, and PR professionals must be in place before an attack escalates.”

Greater scrutiny from financial institutions, governments and journalists is also needed, she adds.

Despite growing risks, regulation remains inadequate and unpredictable. “With information spreading across multiple platforms and jurisdictions, and technology advancing rapidly, we are in a perfect geopolitical, technological, commercial, and moral storm,” says Schillings’ Mr Robinson.

Further regulation could help families mitigate online risks, but international alignment is unlikely, says Digitalis’ Mr King. “The EU and US are moving in opposite directions on privacy and safety.” Under Mr Trump’s second presidency, regulation — and even platform self-regulation — in the US is at an all-time low.

Content moderation had improved under scrutiny, but that progress is reversing. “US regulation is going backwards, and since it sets the tone for global tech policy, the impact will be widespread,” warns Mr King. Without stronger frameworks, individuals and families must take greater responsibility for their online protection.

As digital risks grow, wealth managers and private banks must help clients safeguard their online reputations. Embedding reputation management into their advisory services will be key to navigating an increasingly complex digital landscape.