Stock market trading is where a share or a company’s equity represents ownership or stake for a small part in a company or corporation. Stock market apps and websites are quite secure, but you cannot tell when a security breach could happen. A Security breach is when a network, device or applications are accessed unlawfully.
In a stock market website or application attack are focused in 2 ways, the first technique is Hack, Pump and Dump, in this attackers hack users accounts and buy lesser traded stocks and shares, resulting in a “pump” which makes these stock prices go up, then the attacker dumps or sells his/her own stock for high value.
The second technique is Stock doxing where attackers use various methods to gain and leak crucial information on a user or an organization to destroy the reputation, this could result in the company’s value going down. It is found that companies with average share price of +2.6% suffered a loss resulting in -3.0% after the security breach was made know to the public.
Attacks such as phishing, Man-in-the-middle, Ip tracing, DDoS, botnet, Key logging, packet sniffing, reverse mobile phone lookup, malware injection all these can be used to hack a users stock account or an organisation.
Therefore, to prevent such attacks using different preventive measures could be very important. Security measures such as Ring Fencing, Using VPN, Hiding domain registration, using strong passwords, using different email ID’s for different purposes, Multi-factor authentication, Encryption of sensitive information, Securing devices and networks could help prevent such attacks or attempts.
Therefore knowing your networks, security measures and having knowledge on how to prevent attacks could help in much enjoyable stock trading.
