Common Cyber Threats and Ways to Safeguard your Money

Retail investing is now just a touch away, all thanks to online brokerage platforms and mobile trading apps. Earlier, lack of information made it difficult for retail investors to trust the stock market. Today, we live in the era of technology.
And as more investors are navigating the digital finance system, cybercriminals are also upping their game to exploit vulnerabilities.

As a retail investor, you must be aware of the risks and take proactive steps to ensure that your assets are secure from cyber threats.
As technology is advancing, the methods hackers use to exploit you are also advancing, in times like this it is crucial for the retail investors to stay ahead of the curve.

 

Cyber Threats Targeting Retail Investors

Phishing Scams

We all have received emails, messages or links that appear legitimate but in fact they are designed to steal personal information and login credentials.

Scammers use fake alerts or fake investment opportunities to lure Retail Investors into sharing sensitive data.

This type of scam is very common these days and therefore, spreading awareness is crucial.

Some advanced phishing scams even use fake websites that closely resemble legitimate platforms, making them harder to detect. Always verify the authenticity of emails and messages before clicking on any links.

Malware and Key Loggers

Cybercriminals use malicious programs to hijack your systems and steal accounts credentials. They use malware, including keyloggers and spyware, to record keystrokes.

These malicious programs can be embedded in email attachments, fake apps, or compromised websites.

Once installed, malware can monitor online activity, track passwords, and even manipulate transactions without the investor’s knowledge. Avoid downloading software from unknown sources and use trusted cybersecurity tools to scan devices regularly.

Account Takeover Attacks

Hackers steal login details and most often these details are acquired from Phishing attacks or from data breaches.

Once hackers have access to your Investor account, they execute fraudulent trades or withdraw funds or manipulate investments for personal gain.

Some attackers may even change account recovery details, locking investors out of their accounts. To prevent this, investors should enable multi-factor authentication and regularly update their passwords.

Fake Investment Schemes

Retail Investors are often targeted with too good to be true investment opportunity such as Ponzi schemes or fraudulent initial coin offerings (ICOs), promising guaranteed returns. One should always keep in mind that if the deal is too good to be true it’s a trap.

They promise guaranteed returns but once they have your money, they are nowhere to be found.

Social media platforms and online forums have become hotspots for these scams, where fraudsters pose as successful investors to lure unsuspecting victims. Always conduct thorough research before investing in any opportunity and verify the legitimacy of the company or individual offering the investment.

SIM Swapping and Identity Theft

Hackers can gain access to your financial accounts but how? By hijacking your mobile number through SIM swapping, they can also bypass two-factor authentication by doing so.

This technique involves tricking or bribing a mobile carrier employee into transferring the victim’s phone number to a new SIM card, giving the attacker control over account recovery processes.

You should use app-based authentication instead of SMS-based two factor authentication whenever possible.
 

Best Practices to Protect Your Investments