Online trading requires considerable knowledge and luck, but if done correctly, it can generate additional income and, with some luck, yield substantial sums of money. However, like other money-related activities, this world is not without risks.
Every day, various phantom platforms or brokers emerge, willing to do anything to steal users' information or money. Even if a platform is 100% legitimate, this does not mean there are no risks, as not all applications have adequate security measures.
Nevertheless, these issues should not be an obstacle when starting in the world of trading. Here are some cybersecurity tips to start on the right foot and avoid falling victim to scams.
How do online trades usually work?
To explain the risks that may arise when making trades, it is important first to understand how they usually work. This is essential, especially for those who have no experience in this field, as many criminals take advantage of new traders' lack of knowledge.
- Finding a platform: The first step is choosing a site to trade on. For those who do not have one in mind, it is recommended to choose one such as MetaTrader 4 mobile, available on brokers like Exness, as it has applications for both Android and iOS.
- Locating the asset to trade: Once the account is created, the next step is to find the asset to buy or sell. Once done, a trade request is made.
- Broker execution: After submitting the request, the broker looks for a counterparty interested in trading under the imposed conditions and executes the order.
- Order completion: Once both parties agree to the exchange, the platform will handle the entire process, and the trader will receive the desired new asset or capital.
Common dangers when choosing a platform or making trades
Now that the trading process has been explained, it's time to discuss the dangers. Here, it is important to understand that not everything depends on choosing a secure platform like MetaTrader 5 mobile, as even a secure site or application can sometimes fall victim to the following attacks:
Vulnerabilities within the application
Some trading applications and platforms are not properly encrypted, making them vulnerable to man-in-the-middle attacks (MitM), where a third party can view communications within the app and extract sensitive information such as passwords or emails, which can be used to steal access or for other malicious purposes.
Attacks on platform providers
In some cases, the vulnerability is not in the platform itself but in its provider, known as a supply chain attack. In these scenarios, hackers can not only gain access to users' credentials but also carry out attacks that completely disrupt the platform's operation.
Vulnerabilities caused by the user
Failures do not always come from the platform. Sometimes, the user may cause security breaches by accessing the platform from a device infected with malware or using an unsecured internet connection.
Cyber fraud in the trading world and how to recognize them
Malware and hackers are not the only threats when conducting trades. Criminals also employ the following tactics:
Phishing or identity theft
Phishing is one of the most common internet frauds and involves impersonating a person or organization to trick the victim into providing sensitive data, accessing malicious links, or downloading infected files.
Ransomware
A type of malware used to block user access. Once activated, the program typically displays a warning demanding payment to the criminal in exchange for regaining access.
What can be done to avoid these problems?
- Research the site before trading
Not all trading platforms are the same. It is recommended to review the security measures of each one, check reviews, see if they have been hacked in the past, and assess the effectiveness of customer support in case of an emergency.
- Use separate email accounts
Although it may be tempting to use the same email for everything, it is best to have an exclusive email account for trading. This reduces the chances of it being stolen by third parties during other activities.
- Manage passwords properly
As with emails, it is best to use a unique password for the trading account. It is also recommended not to use personal data, such as a birth date or name, as these could be exploited by third parties to gain access.
- Enable two-factor authentication (2FA)
Two-factor authentication requires the platform to request an additional code whenever someone attempts to log in. This code is only sent to the registered email or an external application, ensuring that only the account owner can access it.
A calm mind is the best guide for trading
While these tips help, it is also important to remain calm when trading and not be swayed by promises of quick riches or panic, as these are the main weaknesses criminals exploit to carry out scams and attacks on trading platforms.
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