While the Forex industry becomes more and more dependent on the Internet, it has been expected that the number of criminal activities targeting the digital part of Forex will rise up. Indeed, the expectations came true during the pandemic. The damage of cybercrimes is estimated to be $6 trillion in 2021, while it was only $3 billion in 2015. An increasing number of trading activities mean more traces to follow for cybercriminals, which results in a more structurally vulnerable business environment.
Even if the Forex market is a decentralized trading zone, nearly all countries have assigned their law organs to identify these crimes. However, it is not true that all these precautions are enough to deter upcoming illegal cyber activities. To understand how brokers and traders protect themselves against these attacks, the most common types of cybercrimes should be well-defined.
Social engineering and phishing attacks heavily rely on human error rather than weak points of a security system. According to research, 83% of the companies have recorded at least one phishing attack in 2018. The core idea of these attacks is to make someone click on a link to get into their computers and personal information.
Hacking, on the other hand, targets the weakness of a system or device. The most popular way is distributed denial of services (DDoS). In that case, the hackers lead to enormous traffic so the other users of the platform cannot reach the service. Many hackers demand some money to unblock the network and update the security protocol.
What To Do?
Step 1: Educate Employees
In this technology era, the only way of beating knowledge is through knowledge. Many of the employees do not have any idea about cybersecurity and how they can help your brokerage business by taking simple steps. Cybercriminals usually use an employee’s network persona to interfere with your business. Preparing a training platform that focuses on cybersecurity may be a good start to make your broker more reliable.
Step 2: Get Insurance
Cybercrimes mostly aim at small and medium businesses that cannot easily recover from their losses. A report states that 60% of the hacked small and medium businesses have ended their operations in six months after the cybercrimes. If you insure your business, there is a possibility that the effects of a cyberattack will be diminished so you continue to survive.
Step 3: Hire Cybersecurity Team
A team of cybersecurity experts will be beneficial to fight against the criminals. What they usually do is to provide some security tools but two of them are more popular: firewalls and encryption. While firewalls concentrate more on the interior elements of your company, encryption keeps the hackers away from your brokerage business. After the install, they monitor your systems and provide consultation in cases of attacks.