Dislaimer: Owing to the outbreak of Covid-19, more people are using the internet at one time than ever before. During this period, there has been a rise in cyber crime rates. Be sure to stay extra vigilant when you trade online.
If you’re thinking of getting into online trading, or have just started, there’s a lot to get your head around. Whether you’re working out which broker you’d like to trade through, or trying to figure out how this is all going to affect your tax, there’s plenty to think about.
With so much to consider, one area which might go dangerously neglected is the potential threat of a cyber attack. You’re likely to be dealing with large sums of money. That’s going to naturally draw attention from prying eyes.
It will also look at the more general issues of cyber security within the stock market as a whole. While these are both very different forms of attack, they are equally dangerous from a financial perspective. Let’s discover how to best stay safe when you’re taking your first steps into the world of trading.
From just the 14 in 1990, there were over 200 by the year 2001.
Source: Be Businessed
From just the 14 in 1990, there were over 200 by the year 2001.
4.5 million cyber attacks officially committed in the UK in 2018 alone. Office For National Statistics
Again, there’s more than one way an individual trader might be targeted online. Whether it’s via schemes which purposefully mislead a trader, or outright attempts to steal your private data, cyber criminals have a series of tactics they’ll employ.
Naturally, this raises a number of potential risks. Broker fraud isn’t unheard of in these instances. Some of the ways this will happen include:
Unregulated brokers on the current market to avoid include:
Don’t make the mistake of turning to a name you don’t know you can trust.
Robot traders are akin to something out of a sci-fi novel.
It’s important a trading platform has a strong hold over each of these facets of data security. But how can you know that one does?
Be sure to assess each of these factors thoroughly. If you don’t feel convinced the platform is going to properly protect you, look elsewhere and repeat the process. Don’t settle for cheap rates in favour of a lack of security.
A firewall will effectively prevent anything untoward from getting through to your system.
Once you know a breach has happened, it’s time to change all the passwords for your other accounts.
Once you know a breach has happened, it’s time to change all the passwords for your other accounts.