Friday, May 31, 2024

What do forex trading businesses do to prevent cyber attacks?

These days, anyone who does business online needs to appreciate the importance of good cybersecurity. This applies to forex traders as much as it applies to other sectors. What do people who trade currencies in this way have to do to stay safe?

Image credit: Pxfuel

The move to online forex trading

Forex trading has been around for centuries but it has been transformed by technology in the last few years. A large percentage of trades is now carried out online, as investors can take advantage of round-the-clock markets to trade different pairs of currencies on a 24/7 basis.    

The basic concepts of currency trading remain the same, but online options make it easier to get involved. Many investors opt for the protection of secure forex trading platforms, such as the IG site which uses 256-bit SSL encryption, keeps client funds in segregated bank accounts, and is licensed by the Bermuda Monetary Authority. 

Is it attractive to hackers?

The financial services sector is one of the areas of most interest to hackers. With large sums of money being moved about and sensitive personal data involved, this is an area where there is a chance for cybercriminals to take advantage of any errors or slack security measures.

Yet, the truth is that we seldom, if ever, hear of the forex market being compromised. This is the world’s largest financial market, with trillions of dollars of currencies being traded each day, so why haven’t these firms been hacked in the way that JPMorgan Chase, Heartland Payment Systems, and Equifax have all been?

The fact that large-scale hacks of the forex network haven’t occurred to date suggests that the systems used are robust enough to dissuade hackers, or to stop them in their tracks. Since most of the information is decentralized rather than held in a single database, there is a higher degree of security from the start.

Forex is a dynamic market where money moves around from one account to another, rather than sitting for long periods in just one place. This makes it more difficult for cybercriminals to work out where to attack.

Image credit: Pxfuel

The most important pieces of advice

Despite what we have just seen, there are still some important pieces of security advice that traders need to be aware of. Anyone who trades on the forex market should review their processes, to discover if there are any weaknesses that could be exploited.  

The first step is to only use regulated, professional platforms and tools. You should also be aware that all passwords needs to be strong and changed frequently.

Users should also be aware of the most common types of cyberattack that are currently used, from phishing to SQL injection and malware. It is then a question of making sure that anti-virus software is used to block any potential attacks.    

You should take care when using these markets, in the same way that you carry out any other sort of online financial activity. However, all of the evidence points to forex trading being one of the least risky ways of investing using the internet.  


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