Cyber and hacking attacks are not uncommon in the Foreign Exchange Market. These attacks affect Forex traders directly when the attackers gain access to confidential information such as their name, trading account numbers and email addresses. Attacks may stem from intentional breaches from DDoS and Malwares such as Trojans. During an attack against JP Morgan in August 2014, 83 million client email and physical address information was reportedly compromised. It is true that Forex brokers are often prepared to protect the information that traders provide them with, but it is nevertheless important for traders to ensure that they also take appropriate steps to mitigate this risk. The million-dollar-question is; how can Forex traders mitigate cyber attack risks?
Changing Passwords Regularly
Changing login passwords on a regular basis goes a long way in ensuring that a Forex trader experiences some level of security from threats posed by hackers. When login passwords are changed regularly, hackers find it hard to acquire their passwords and snoop on an individual’s transactions (or try to transfer the money to other account). When changing passwords, Forex traders should also ensure that as a rule of thumb, they not only change the passwords but also make them stronger by incorporating a mix of both numbers and characters. Disregarding this advice may cost Forex traders when they suddenly realize that a hack was responsible for the losses that they made.
Ignoring Suspicious Emails
A common scheme that Forex traders fall for is the email bait. In cybercrime, the email bait is usually sent to the Forex traders with a similar layout to that of their broker’s, and is meant to mislead them into clicking on some of the links that are in it. Traders should always pay attention to such emails and avoid clicking on all the links found in it before contacting their brokers to confirm whether or not it is legitimate. Additionally, Forex traders should avoid changing their login passwords via pop-ups from an email as this is the number one trick that scammers and hackers use to get a hold of their login details.
Updating Anti Virus And Anti Malware Regularly
Improvements in software technology are always making headway over the years. Unfortunately, the malicious side of technology also grows at the same pace, with malwares and viruses more sophisticated than last being released. Forex traders need to ensure that their Personal Computer (PC) security does not become obsolete in order to ensure that new threats are always countered. Updating Anti Virus may seem cumbersome; especially when Forex traders deem it as a waste of time and bandwidth, but it is better to take precaution than suffer the detrimental effects that viruses and malware might have on a traders account.
Choosing Trustworthy and Properly Regulated Forex Brokers
When choosing Forex brokers and brokerage firms to work with, traders need to ensure that they choose those that are regulated. The main purpose of regulation is to ensure that that there is ethical business behavior in the Foreign Exchange Market. Regulators such as Cyprus Securities and Exchange Commission, U.S Securities and Exchange Commission, Financial Regulatory Authority and the Swiss Financial Market Supervisory Authority go a long way in ensuring that Forex brokers are pressured to always maintain their system and credibility. This goes a long way in ensuring that a Forex trader is not susceptible to attacks from hackers as their system is always monitored for threats.
Seeking Forex Brokers With The Two-Factor Authentication Method
In the Two-factor authentication (2FA) method of confirming a Forex trader’s claimed identity; the system usually requires an additional piece of information (known only to the trader) such as a physical token. This two step verification system acts as an extra layer of security to protect Forex traders from cybercrime and scammers from gaining access to private data and financial details that may be used to commit fraudulent acts of a financial nature. This security measure ensures that a Forex trader’s password is protected from phishing threats and malware attacks. Forex traders can similarly enquire whether their Forex broker of choice has good prevention measures in case of a hack.
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