Despite the rise of digital workflows, printed documents remain a fixture in the world of wealth management. Whether it’s client contracts, financial statements, or regulatory filings, the need to print and store sensitive paperwork is still very much alive. However, while essential, printed documents come with their own set of risks.
For registered investment advisors (RIAs) and financial advisors, ensuring the security of these documents is critical, not just to protect client confidentiality but also to comply with strict regulatory requirements. This guide explores the risks associated with printed documents and outlines actionable steps to help your firm better protect them.
The risks of printed documents
Printed documents may seem less susceptible to big breaches compared to their digital counterparts, but they carry several unique vulnerabilities:
Data breaches
Printed documents often contain sensitive client information, such as Social Security numbers, bank account details, and investment portfolios. If this paper trail falls into the wrong hands, the consequences can be devastating for your clients as well as your firm’s reputation.
Consider these scenarios of how breaches might occur:
- Theft – A misplaced financial statement could be stolen by someone inside or outside the office.
- Unauthorized access – Documents left unattended on desks or in common areas might be viewed by unauthorized employees or visitors.
- Accidental disclosure – A printed client report sent to the wrong person by mail could expose sensitive data.
The unforgiving nature of physical documents is that once they’re in the wrong hands, no encryption or password lock can undo the damage.
Lack of control
Unlike digital files, which can be shared and tracked through secure portals, printed documents are significantly harder to monitor. Once printed, there’s no telling how far a document will travel or who will see it.
The challenges don’t end there:
- Documents may be copied, misplaced, or forgotten in unsecured locations.
- File ownership and chain of custody become difficult to trace.
- It’s nearly impossible to recall a document that has already been distributed.
RIA and financial advisory firms need to establish strong policies to maintain control over physical paperwork throughout its life cycle.
Compliance concerns
Regulatory bodies, including the Securities and Exchange Commission and the Financial Industry Regulatory Authority, require RIAs to handle all client data — both digital and physical — with the utmost care. Mishandling confidential information can lead to regulatory scrutiny, costly fines, or reputational damage.
Key compliance considerations include:
- Demonstrating that client data, regardless of format, is stored and disposed of securely
- Meeting requirements for safeguarding client privacy and data integrity
- Providing a clear audit trail for all physical documents
Failing to properly manage printed documents could introduce unnecessary compliance risks and expose your firm to liabilities.
Best practices for securing printed documents
While the risks are significant, there are practical steps you can take to improve the security of printed materials. Here’s how to protect your firm and its clients.
Implement access control
Not everyone in your office needs access to sensitive documents, and controlling that access is crucial for data loss prevention. Establish clear permission levels to manage who can view, print, or share client paperwork. Implement robust access control measures, such as secure printers or locked cabinets, to limit physical document accessibility.
Take it a step further with advanced features such as user controls that restrict specific employees from accessing certain files. Your IT team can also enable notifications for when sensitive documents are viewed or printed, and prevent unauthorized printing of confidential materials altogether. Additionally, implement tracking tools to monitor who printed what and when, providing a clear audit trail in case of any security concerns. These measures ensure client data remains secure while maintaining accountability across the organization.
Use secure disposal methods
Throwing confidential paperwork into the trash is a recipe for disaster. Instead:
- Use cross-cut shredders for on-site disposal.
- Partner with a secure disposal service to ensure all documents are completely destroyed.
Never leave sensitive documents in unsecured recycling bins.
Invest in secure printers
Modern printers often come equipped with security features to safeguard printed documents. Look for devices that offer:
- PIN release printing – ensures that only authorized users with a unique PIN can retrieve printed documents
- Encryption – protects data in transit between computer and printer
- Automatic deletion – prevents sensitive files from being stored on printer hard drives
Train your employees
Every employee, from new hires to seasoned advisors, should understand the importance of secure document handling. Provide regular training in document security policies and procedures, and make sure that all employees are aware of the consequences of mishandling sensitive documents.
Training sessions should cover:
- Securely storing files in locked cabinets
- Avoiding leaving documents unattended on desks or printers
- Following proper disposal procedures for confidential material
Regular training ensures that security isn’t just a policy but a part of your company culture.
Proactively monitor printing activity
To maintain control over printed material, it’s vital to track and monitor printing activities. Use print management software that captures data such as user name, timestamp, and document title for every print job. This information can help identify potential security breaches and enforce document policies.
Transition to digital alternatives
One of the easiest ways to minimize risk is to reduce your reliance on paper altogether. Digital workflows offer enhanced security and greater control over sensitive data. Solutions such as secure file sharing platforms and electronic signatures eliminate the need to print, sign, and store physical paperwork.
For instance:
- Use encrypted document management systems for storing and sharing files.
- Implement eSignature tools to obtain client approvals digitally.
- Transition to secure client portals for ongoing communication and document exchange.
IT’s role in securing printed documents
The reality is that securing printed documents requires both technical and operational expertise. This is where IT experts, particularly managed IT services providers (MSPs), can make a difference.
MSPs can help:
- Set up secure printing solutions tailored to your firm’s needs.
- Ensure compliance with regulatory requirements surrounding document security.
- Audit and optimize your current practices to stay ahead of evolving threats.
At RIA WorkSpace, we specialize in delivering IT solutions designed for RIAs and financial advisors. With our comprehensive approach to document security, we make it easier for you to protect your business and its clients.
Take the first step toward securing your firm by contacting RIA WorkSpace. Learn more about our IT solutions today.