AI, Cybersecurity & Client Trust in the Age of Digital Risk

With cybersecurity expert Brennen Schmidt

As artificial intelligence continues to evolve at lightning speed, so do the risks—especially for professionals working with sensitive data, like financial advisors.

In this episode of the Millennial Money Canada podcast, Sam Lichtman sits down with cybersecurity consultant Brennen Schmidt to unpack the challenges and opportunities AI presents—and what advisors can do to stay ahead.

From Teaching to Tech: Brennen’s Unlikely Journey

Brennen didn’t start in cybersecurity. In fact, he was training to be a high school computer teacher. But his love for technology steered him into digital communications, public relations, and eventually consulting with a global professional services firm. There, he tackled real-world cybersecurity projects and co-authored a book, Cyber City Safe, which draws comparisons between cybersecurity blind spots and historical military oversights like the Maginot Line—a heavily fortified defense that failed due to one small gap.

The Real Risk Behind the AI Buzz

AI tools like ChatGPT offer incredible convenience and power, but they also open the door to risk—particularly in areas like data privacy, bias, and regulation. Brennen raised two key concerns:

1. Human-in-the-loop: As AI systems automate more decisions, are humans still involved to correct errors or flag red flags?
2. Transparency: Can users (and regulators) truly understand how these systems are making decisions?

For example, AI used in underwriting could unintentionally introduce bias based on postal code data—raising ethical and legal concerns. And while large financial institutions are investing heavily in custom AI systems, many smaller businesses rely on third-party tools, which increases vulnerability.

AI in Financial Services: Risk and Reward

Sam and Brennen discussed how financial professionals are using AI for automation—summarizing client meetings, streamlining CRM updates, and even reading through complex documents like the Income Tax Act. These tools save time, improve compliance, and help advisors focus on client relationships.

But they also acknowledged the dark side: scams, impersonations, and misinformation.

“You Just Won a Gift Card…”—The Rise of Sophisticated Scams

Scams today are far more advanced. Deepfake audio and video can impersonate real people—like a financial advisor asking for SIN numbers and banking details. Brennen explained that most scams prey on two human instincts: delight (you won a prize!) or fear (you owe taxes!). AI only makes these scams more convincing.

Sam shared that he’s had over 150 impersonator social media accounts made in his name. Some scammers even cloned his voice. His response? Limit client exposure, don’t allow Google reviews, and reinforce secure client communications.

What Can Advisors Do Right Now?

Brennen offered a few practical tips for advisors and small businesses:

• List official social media links on your website.
• Use multi-factor authentication on your hosting, CRM, and email platforms.
• Limit the data you collect. Don’t gather extra details like profile photos or anniversary dates unless there’s a clear purpose.
• Be intentional about data retention. For example, the CRA requires advisors to store data for 7 years, but not longer.

He also recommends creating a “Crown Jewels Inventory”: a simple list of the essential systems, tools, and data your business relies on. If something were to go wrong, would you know what’s most critical to recover first?

Reinforcing the Human Element

Despite all the tech, Brennen argues the biggest safeguard is still the human relationship.

Knowing your client personally—how they talk, who their family is, and what their normal behavior looks like—makes it easier to detect if something feels off. Sam shared how he’s even considering a simple verbal passphrase system during sensitive transactions.

Another idea? Reverse trivia. Ask clients something slightly wrong like, “How’s your cat?” when you know they have a dog. If the answer seems out of place, it could be a red flag that you’re not speaking with the right person.

The Bright Side: How AI Can Actually Help

AI isn’t all bad. In fact, it’s already helping advisors:

• Transcribe client meetings into searchable notes.
• Highlight key action items for compliance.
• Automate CRM updates and reduce admin work.
• Use tools like NotebookLM (a closed AI assistant that only draws from uploaded files) for tax research and document troubleshooting.

In healthcare, AI helps transcribe doctor-patient conversations. In finance, it assists in generating draft emails or workflows—freeing up time for more client-facing tasks.

Where Are We Headed?

Brennen predicts the next five years will bring:

• More transparency into how AI decisions are made.
• A resurgence in human interaction—clients might want to speak to someone instead of a chatbot.
• Higher demands for energy efficiency and ethical AI use.
• Stricter guidelines around data privacy and responsible use.

He also emphasizes the importance of “purpose limitation”—only use client data for what you said you would—and communicating that clearly to clients.

Client Trust Is Everything

As we move forward in this digital age, one truth remains: trust is the cornerstone of the advisor-client relationship.

By staying transparent, collecting only essential data, and implementing simple but effective security measures, advisors can use AI to enhance trust rather than risk breaking it.

Want help assessing your own cybersecurity readiness? Brennen suggests starting with a tabletop exercise: walk through a real-life scam scenario and ask—where could your systems or processes break?

📲 Connect with Brennen: IG: @brenzens LinkedIn: Brennen Schmidt Or reach out directly to book a security scenario planning session.

Guillaume Girard, CFA CFP | Samuel Lichtman

Millen Wealth Advisors

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