Cybercrime Still on the Rise – Be Wary of Potential Scams

While our attention may be drawn to the latest news regarding the COVID-19 pandemic or the Tokyo Olympic Games, cybercrime statistics continue to grow unabated in the shadows. The problem has got out of hand. Security professionals now estimate that the GDP of global cybercrime now ranks third behind the US and China. Put another way, the costs per day exceed $16.4bn, and even though the attacks are primarily on small to medium-sized enterprises, the impacts of these data breaches will soon reach down to individual consumers.

Source: Cybersecurity Ventures, 2020

The situation is not lessening to any measurable degree. According to information revealed by Help Net Security: “A research study conducted by Deep Instinct reports on the hundreds of millions of attempted cyberattacks that occurred every day throughout 2020 showing malware increased by 358% overall and ransomware increased by 435% as compared with 2019.”

Cost projections for cybercrime portend continuing growth up to $10.5tn annually by 2025. As a result, the cyber security market is also expected to grow but at a lower compounded annual growth rate of 12.5% over the next five years. By 2027, the market value of businesses fighting cybercrime will be in excess of $400bn. Perhaps an investment in this market sector would be wise for the long term.

What are the primary targets?

Cyber crooks of today are often described as modern-day pirates who focus on mid-sized ships since larger corporations have been girding their loins for battle for several years. The pay-offs may be smaller, but the risks of being blocked or prosecuted are much less. As more consumers work, shop and trade from home, the potential for breaching small to mid-sized businesses has accelerated. These businesses have neither the budget nor the experience necessary to implement advanced security precautions as the threat continues to rise.

What can be done?

Targeted businesses need to upgrade to the highest affordable level of anti-virus and anti-malware software and train their staff on how to avoid phishing attempts conducted by cyber crooks. All it takes is for a few employees to click on nefarious links or download and open files from insecure sources to allow entry for these thieves.

Once inside, the fun can begin to canvass internal keystrokes and confidential data elements to wreak havoc on client accounts or, worse yet, freeze access to data and demand a ransom. If this situation occurs with your forex broker, you may begin to see a downgrade in service as clients begin to go elsewhere when cutbacks in customer service have a direct impact.

Concluding remarks

It is always wise to upgrade your anti-virus software, change passwords, avoid visiting links to unknown websites, and resist the urge to open questionable downloaded files, but what do you do if your forex broker is not following these best practices? Be wary if the service from your broker begins to slip. Ask for a small withdrawal to test the process for swiftness. If alarm bells begin to ring, the staff at ForexFraud.com are prepared to assist your search for a new broker.

About the author: Justin Freeman

Justin is an active trader with more than 20-years’ industry experience of working for big banks and hedge funds. He has an inside knowledge of how the financial markets work, thanks to roles including trader on a $750m Event-Arbitrage desk and CRO and COO of hedge funds running a variety of strategies. From stat-arb and trend-following CTA to fixed-income relative value. Firm’s he has worked at include big banks like Citi, and prominent hedge funds including D. E. Shaw and Millennium Capital Management.

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