Stay safe out there, March 2018

Information security firm CSO recently released an article detailing the biggest breaches of cyber-security of the 21st century. The list is one cautionary tale after another of how unprotected the online resources are, even as millions of people trust them every day. It’s a stomach-churning read, especially as you realize that your information has likely been accessed in one of these cases. Breaches happen every single year in industries from retail to communication, and even governments are constantly at risk of being hacked. Most relevant to tech trading are attacks on payment systems, which can disrupt the supply chain, the flow of business, and the bottom line.

One entry on that list hits especially close to home. In late 2006, TJX Companies, the parent of many retail chains worldwide, suffered a globe-spanning computer breach in which consumer credit and debit card information was exposed, and all involved companies, banks and insurers lost in excess of USD $200 million. The cause is thought to have come from either a weakly-encrypted data system or an active attack on a retail-outlet based job encryption system. Whichever way you slice it, these are two ways in which sensitive can be exposed and work to the detriment of traders and wholesalers alike.

Anybody can be vulnerable, really. Even if you do not deal extensively in transferring sensitive personal information, hacks can happen to those who do not have their wits about them. Business email compromises (BECs) are all too common, and if timed just so, this can spell disaster. Say you’re in the middle of a transaction, having just sent your proforma invoice out. Hackers can access your inbox, and that of your customer, sending emails posing as you, claiming that your bank account information have been “updated,” and requesting a re-transfer of funds. Hundreds of thousands of dollars have been lost this way. Don’t fall prey to a BEC.

How can you protect yourself? For starters, take advantage of the security measures that email platforms provide. For years, GMail has offered two-step verification that requires using your phone to verify your login (other services offer this feature as well – check twofactorauth. org for details on every one). It has proven to be an indispensible tool in the fight against BECs, as you can also learn anytime someone tries to access your inbox from anywhere in the world. For those who run transactions on a larger scale, it helps to educate yourself about the best encryption standards available, as well as institute best practices for controlling personnel access to data, employing firewalls and VPNs, and vigilantly updating the latest security patches for vital software such as operating systems.