Registered Investment Advisors See Wire Fraud, AI Errors as Emerging Threats to their Business, According to Golsan Scruggs 2025 Risk Survey

Lake Oswego, Ore., Oct. 27, 2025 (GLOBE NEWSWIRE) -- Registered investment advisors (RIAs) are growing increasingly concerned about their liabilities for errors and issues caused by artificial intelligence and wire fraud, though vulnerability to cyber breaches or attacks remains the top worry, according to the 2025 RIA Bi-Annual Risk Survey from insurance brokerage Golsan Scruggs.

Nearly eight out of every 10 RIAs surveyed listed wire fraud/crime/social engineering as a pressing corporate risk. Further, four out of 10 RIAs say application errors due to AI are a risk, according to the data. This marked the first year either concern was measured by the RIA Risk Survey.

Overall, cyber breaches remained RIAs’ top concern in 2025, though at somewhat less of a magnitude than shown in the 2023 survey. However, the new concerns about wire fraud topped the regulatory risk category, which had been the second-highest corporate risk advisors cited.

“Independent advisors are clearly concerned about how sophisticated technology can negatively affect their practices,” said Ken Golsan, Co-Founder and Managing Director of Golsan Scruggs. “Whether it is wire fraud, cyberattacks or mistakes from AI, we have seen increased desire to manage and mitigate those risks.”

Trade execution/errors and failures in due diligence were also considered major risks, though at lower levels than the previous survey two years ago. Indeed, most of the risks polled ranked lower, as the new threats around wire fraud and AI have grown.

“It is telling that, as hacks to steal client information have become more successful, powered by AI and other new technology, advisors are turning their attention to those areas,” Golsan said. “We would not be surprised to see these areas top our surveys in the coming years.”

Golsan Scruggs surveyed approximately 8,000 independent RIAs from May through August to determine which areas of risk are collectively perceived as concerning, significant, and central to their businesses. Respondents were asked to rank 10 different risks in order from lowest to highest.

To access the full survey results, please visit Golsan Scruggs.

ABOUT GOLSAN SCRUGGS

Golsan Scruggs is a corporate insurance brokerage firm serving the financial services industry. Our specialists operate throughout the United States and specialize in registered investment advisor (RIA), private equity/hedge fund, and mutual fund professional liability errors & omissions (E&O) insurance. As one of the largest insurers of RIA firms in the U.S., Golsan Scruggs employs a dedicated staff that understands the special risks of the financial services industry to achieve superior results, making the underwriting process painless.

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Source: Golsan Scruggs