Protecting Your Investments From Cyber Security Attacks

Protecting your online assets and investments has become a key part of financial management. Thousands of cyber attacks happen each day (an estimated 39 per second), and the hackers know exactly what they’re doing—which means you have to be smarter than them. 

In this ever-evolving environment, cybercriminals possess a deep understanding of their craft, making it imperative for investors to stay one step ahead by adopting proactive cybersecurity measures.

Here are some ways to protect your online investments from cyber security attacks. 

Understanding the Threats

The first step to protecting your investments and online assets is to know the security threats.

Malware

Malware is malicious software that can be used to access a system, compromising the confidentiality and availability of data.

Spyware—a specific type of malware—is especially concerning to investors, as it violates privacy, gaining access to your personal information.

Ransomware

Ransomware prevents you from accessing your system unless you pay a ransom using online payment methods. 

The primary method ransomware employs is encryption, wherein cybercriminals use advanced algorithms to encode the victim’s files, making them unreadable without the decryption key. 

Once the files are encrypted, a ransom note is usually displayed on the victim’s screen, detailing the payment amount and providing instructions on making the payment, often in cryptocurrencies such as Bitcoin, to maintain anonymity.

Phishing

Phishing is when the hacker tricks you into revealing your personal information. You are baited using messages or emails, and as a response, you either provide the hackers with account details or click on a link that installs malware on your system. 

Man-in-the-middle (MITM) Attacks

In a man-in-the-middle attack on an investing platform, the cyber attacker inserts themselves surreptitiously into the communication channel. They could do this through various means, such as exploiting vulnerabilities in the network, utilizing malicious software, or setting up fake Wi-Fi hotspots.

Once in the middle of the communication stream, the attacker can eavesdrop on the data exchanged between the user and the investing platform.

This illicit access allows the cybercriminal to gather critical information, including login credentials, personal details, and financial data. This information is then used to compromise the individual’s investment accounts, execute unauthorized transactions, or even facilitate identity theft.

How To Protect Your Investments From Cyber Security Threats

Once you know the threats, you can be one step ahead and put certain defenses in place to protect your online assets. 

Create a Strong Password

Using the same password in all your online accounts might be tempting, but creating a strong and unique password for each account is much safer. Use numbers, symbols, and capital letters in the password. If possible, implement two-factor authentication. This step adds another level of security in case your password is compromised.

Use Security Patches

Security patches are software and system updates that find and fix security vulnerabilities. Applying a security patch is similar to placing a protective shield over a potential entry point for cyber threats. In this context, the “patch” refers to fixing or covering a specific area of weakness, essentially sealing any potential vulnerabilities in the system. 

The security patch acts as a barrier, preventing cybercriminals from exploiting identified weaknesses to gain access to the network, steal sensitive data, or execute malicious activities.

Network Security

Only access your investment platforms at home on your private network. Public Wi-Fi is too risky for any online transactions. When you trade options online, or screen stocks to diversify your investment portfolio, use a VPN for enhanced security and encryption. 

Remain Vigilant

A little bit of common sense can go a long way. Avoid clicking on pop-up ads, don’t click any foreign links in emails, and always be cautious. 

If an investment opportunity comes your way that seems too good to be true, it probably is. Before signing on to new investment platforms, check the credibility and read user feedback before investing money. 

Be Proactive

Responding to threats can help you protect your data. But, by being proactive with your web security, you can strengthen your system and protect your data. Here are some steps you can take:

• Back up all your financial data on the cloud and a physical hard drive. That way, you can recover all your files.
• Invest in protection services (e.g., identity protection) to monitor your investment accounts and alert you to suspicious activity.
• Stay updated about the latest cyber security threats.

Wrap Up

Online investments can take many forms—options trading, stocks, mutual funds, crypto, and many more, and it’s necessary to have certain measures in place to protect your assets. 

By understanding the cyber threats, you can take proactive steps to protect your wealth. Remember, no system is completely foolproof, and you must stay informed about emerging threats to protect your personal information and data.