Web users warned to be on guard


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Computer users in the Middle East face a number of cyber-threats in the next year as the adoption of internet-connected devices grows, says a leading technology security firm.

Norton outlined five upcoming threats including URL shorteners, social media identity theft and mobile device hacking that could affect consumers unless they take action to protect themselves.

Cybercrime has emerged as a growing threat in the Middle East after sophisticated online attacks using the Zeus Trojan Horse malware. Security experts say those attacks caused global banking industry losses of at least US$100 million (Dh367.3m).

"It's almost inevitable that 2011 will see a larger number of people in the Middle East region falling victim to cybercrime than ever before," said Tamim Taufiq, the head of consumer sales in the Middle East and North Africa for Symantec, the parent company of Norton.

"Taking your online personal protection seriously is a key New Year's resolution, as the number of high-profile cyber attacks witnessed globally is increasing consumer fears about the threats of spending time online."

Mr Taufiq explained how social media websites such as Facebook and Twitter could be preyed upon by cybercriminals who could send "unusual messages" to extract personal details and passwords from consumers.

Social media also play another role that consumers should be aware of, Mr Taufiq said.

Internet security firms including McAfee and Norton have warned that URL shorteners, online tools that shrink lengthy web addresses for use on sites such as Twitter, can be used to direct users to sites that install malicious software.

Mr Taufiq also said that mobile devices such as smartphones and tablets will be targeted by hackers to access confidential data, which in turn could result in financial loss. "With technology gifts and purchases surging in the winter holiday season, the fact is that the more connected we become in the Middle East, the more cybercrime opportunities are created for criminals to exploit," Mr Taufiq said.

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”