Graphic: Joe Therasakdhi / Shutterstock
In an era where financial transactions are being done online and the majority of banking has been transformed by technology, financial cyber crimes have unfortunately followed suit. Along with sectors like healthcare and the government, the finance world has had to adapt to the increasing number of cyber attacks being carried out. Today’s investors are falling victim to cyber theft and some are even having their financial records wiped. This poses a serious threat to an investor’s portfolio and could even lead to a drop in share prices as an after effect.
Speaking to Money Observer, Lang Cat consultancy principal Mark Polson stated that although investors face less risks, as most firms place their money with a third party custodian, this might not be sufficient. He urges that “custodians need very strong systems” and stresses the importance of better security for asset managers as well.
As cybercrime evolves and becomes more sophisticated, so too must the security used to prevent it. The cyber security industry has exploded in recent years as more companies look to hire specialists to protect their data and portfolios. A post by Maryville University reveals how the U.S. News & World Report ranked an information security analyst position as the 8th top job in the world in 2015. This shows how cyber security experts are now a crucial part of a business or an investor’s setup. Having seen the extent of the damage that can be done by carefully coordinated cyber attacks, investors must now also consider a company’s security measures before investing and make sure their employees are well trained.
There are of course, many other steps investors can take to protect their business and portfolio. Tech Radar informs that the simple act of backing up data is critical to protecting it from theft. Lost information, whether through a cyber attack or a simple mechanical hard drive failure, can cripple a company’s day-to-day operations. It is therefore recommended that companies invest in a cloud provider that backs up data in an offsite location.
Other steps come down to due diligence. In the Forbes article ‘Cybersecurity 101: Practical Tips To Protect Your Personal Data’, it states that even simply researching developer history can save an investor from headaches later on. In order to protect sensitive data, strong passwords – specifically passphrases utilizing numbers and spaces – will act as an extra barrier for hackers due to their length and complexity. Changing the passwords and passphrases on a regular basis is a free way to add an extra layer of security. Additionally, making sure any software stays up to date will make it harder for would-be-hackers to study and exploit weaknesses in operating systems.
There is no denying that the world is becoming increasingly connected. The reward for taking the proper steps towards security concerns is a world where transactions become instantaneous and seamless, relevant information is easily accessible, and there is a streamlining of processes for entrepreneurs and investors. As we have discussed here on Cyndx previously, emerging technology such as 5G has the potential to usher in a new era of networking and business. Yet, with all the benefits come additional risks that investors need to be aware of. In the data driven world of modern business, a company has to make sure they are up-to-date on cyber security in order to keep their portfolios safe.
Piece specially contributed to Cyndx by JBabbitt
(published to Cyndx site by Zachary Hickey)