Cyber threats are a real threat to the current technological world that we live in. With the growth in technology, one of the significant risks that affect our daily lives is cyber attacks on the stock markets.
The primary issue with cyber threats is that you do not see where the danger comes from, and you must arm yourself with ways to avoid falling victim. Cybersecurity is critical to be conversant with, enabling you to protect your assets from any form of breach.
When it comes to the stock market, the security of your shares is paramount. It would be best to put all measures into place to ensure you are not hacked or no data gets stolen.
Big companies in the stock market that deal with blue-chip stocks invest a lot in security. The clients’ safety from cybercrime is paramount to the blue-chip companies to ensure more returns and more clients flow to the company.
Types of Cyber Attacks On The Stock Markets
Cyber attacks aren’t just limited to computers and IT companies; the stock market can be a victim. Here are the different types of cyber attacks on the stock markets. Let’s check them out:
DDoS attack
These are popular types of cyber attacks that comprise banking IT infrastructures that overwhelm the security teams. A Distributed Denial-of-Service that overwhelms the victim’s server with fake connection requests.
Ransomware
It is a type of malware that attackers use to hold the victims’ data hostage in exchange for payment. This specific type of malware forces businesses to pay a sum to unlock files and data in their systems.
This specific type of malware forces businesses to pay a sum that unlocks the files and data in their systems.
SQL injection
This structured query language specifically targets servers storing critical website and service data.
This cyber attack type also uses malicious code to get the server to share information it normally wouldn’t.
DNS tunneling
Such cyber attacks on the stock markets leverage domain name systems or DNS queries and responses to bypass traditional security measures. It does so by using a tunnelling malware program that deploys on the domain name.
Once the attacker infects a computer, they can initiate attacks on the infected computer.
Malware
One of the most common types of cyberattacks, this one uses malicious software viruses such as ransomware, spyware, and worms to breach networks. They do so by identifying vulnerabilities that can help them control the systems.
They may even use malware to launch various financial services cyberattack types.
IoT attacks
IoT attacks exploit vulnerabilities in the Internet of Things, such as security cameras and thermostats, to steal data. This makes it easier for the attacker to take control of the device and use it as a botnet for other malicious activities.
XSS attacks
XSS or cross-site scripting occurs when an untrusted source injects code into a web application. This also leads the malicious code onto the user’s webpage, which finds its way into the victim’s browsers.
The attackers use XSS to steal session cookies, which allows them to pretend to be victimized users.
It also leads to access to user credentials and even damaging actions.
Birthday attack
A cryptographic brute-force attack to obtain digital signatures, passwords, and encryption keys. It achieves this by targeting hash values that represent them.
This depends on the birthday paradox – in a random group of 23 people, there’s a high chance (50%) that two will have the same birthday.
This paradox allows the attacker to generate the user’s credentials – especially if the password is weak or short.
The developer must create a strong cryptographic algorithm and technique that resists this attack.
Fileless
Fileless malware is a malicious activity that uses native, legitimate tools built into cyber attack systems. This attempts to bypass the need for the attacker to install a code on the target’s system.
This makes it very difficult to detect.
Supply chain attacks
Supply chain attacks enable cyber attackers to circumvent security controls by creating avenues to sensitive resources through a third-party vendor of the target.
Unfortunately, vendors do not take Supply chain attacks seriously – so it is easier to compromise their systems. From the supply chain attacks, nearly 60% of the compromised suppliers were unaware of the breach.
Some of the advanced persistent threats include:
- APT41
- APT29
- Lazarus
- Thallium
- TA428
- TA413
These were all the different kinds of cyber attacks on the stock market that are prominent.
Impact of cyber attack on stock markets
Cyber threats have significant effects on the stock market and personal investments.
Drop in stock value
When there is a cyber threat to the stock market, the effects are felt by everybody across the board. Cyber threats have a direct impact on the value of the stock.
If there is a cyber threat to the stock market, you will find that your total stock’s value will drop, affecting your returns.
According to past statistics, cyber threats have impacted companies’ share prices and depreciated them by two-thirds. After the cyber threats, 15% of the companies were closed.
Measures have been put in place by the regulating authority, requiring every company with a cyber threat to report the matter. The reason for this is to ensure that all the investments you have put into the stock market are well-guarded against unscrupulous persons.
There is a direct link between the drop in share price and cyber threats.
Fear of investments
Not everyone understands what cyber threats or cyberattacks are. When an investor hears that there has been a cyberattack and is not conversant with the term, they panic.
Most investors who do not understand a cyber attack’s concept withdraw their shares and refuse to invest in the stock market. Cyber threats affect personal investment, as well.
You may have the portfolio you manage, and then you get hacked. A malicious person may use your account information to access your trading account and transfer all your assets to another account.
When your account is hacked, you will find it will take a long time to recover your stock. Recovery of the stock will depend on the hackers’ ability to hide their tracks and the law enforcement capability to track the assets.
Most people who have been hacked before and lost their investment tend to avoid reinvesting. This makes it very difficult for the economy to grow. Account hacking can create a mess in the stock market.
The more you can think proactively, the better you can develop your business.
What Are The Main Concerns Of Cyber Attacks on the Stock Market?
The stock market is a challenging business arena. You never know when the price will fall and when the price will rise. Now, if a hacker hacks the stock market site, then he can easily manipulate the market rates.
There are several factors that you must consider from your end that can have an adverse effect on your business.
- Hackers can manipulate the market rates of stocks.
- The safety of the investors will be at stake.
- You need to reassess the market factors to develop the right investment plan.
- Estimated results and Actual results of the stock prices will vary immensely.
- False data and wrong investment decisions are possible from the viewpoint of the investors.
- The stock market ratings on different prices will have a vigorous impact.
Protection Against Cyber Threats In The Stock Market
Every stock market needs to treat the cyber threat as the worst attack that can affect them. When investing in stock market infrastructure, protection against cyber threats is one of the most important things the company needs to consider.
There are different ways to protect the systems from intrusion from within the company and from outside.
1. Firewalls
The stock market needs to ensure that they have invested in powerful firewalls. Strong firewalls will ensure that no outside intrusion can penetrate and affect the company’s daily operation.
When investing in firewalls, the company must find the best and safest firewall they can get. A firewall is the first step in stopping external attacks on the stock market.
The government also has training and workshops that help the stock market to curb cyber threats
2. Employee vetting
However, many attacks may come from outside sources; most spells need internal help. The company must ensure all the employees are well-vetted to mitigate the crooks’ employment.
The worst cyber threat that comes unseen is the attack that comes from an employee.
An employee has access to all confidential data and can access a client’s personal information. Regularly changing passwords and controlling information flow is a perfect way to deter internal saboteurs.
Final Words
Hence, if you are planning to invest your money in stocks, you must consider the cyber attacks on the stock markets. It will help you to minimize the chances of financial losses.
The stock market is subject to market volatility and cyber-attacks can even further worsen your situation.
Before investing your money in the stock market, ensure that you have maintained all the safety norms properly. Reduce the chances of losing money from your end as much as possible.
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