Digital trading

Ensuring Transaction Security in the Digital Trading Arena

Published: 10/04/24


The internet has made it possible for people from all backgrounds to invest and trade in stocks, crypto, forex and commodities online. Whether you’re a beginner trader or a professional, ensuring transaction security is essential.

While platforms are generally secure, there are multiple examples of cybersecurity breaches and fraud cases, with platforms and traders losing millions (Carnegie Endowment).

Protecting your online transactions is the best way to enjoy digital trading without risking your finances and personal information.

In this guide, we’ll share everything you need to know about secure payment processing and share some great tips for staying safe online.

Understanding digital trading

Digital trading is a convenient way to invest in stocks, cryptocurrency, forex, commodities and NFTs online. Before the internet took over the world, people would have to use a broker to invest and deal with hefty fees, but digital trading levelled the playing field.

As Forbes reports, digital trading apps are paving the way for new generations of traders to learn about markets and make investments. However, aside from the many benefits it offers, there are also security risks associated with digital trading.

Common threats include:

  • Cryptocurrency scams: With many people choosing to invest in cryptocurrency, scams that promise high returns are growing in popularity. They often lead to substantial losses.
  • Security breaches: Trading platforms attract hackers because they store sensitive financial information.
  • Ransomware and Malware: Both ransomware and malware can disrupt operations by infecting devices, and hackers can take control of your account.
  • Identity theft: One of the most common ways for cybercriminals to exploit the internet is by accessing their victims’ personal information. They might use this information to make transactions, apply for loans and impact your credit score.

How to stay secure trading online

While there are threats associated with digital trading, the good news is that you can take steps to mitigate them and enjoy a safe experience. The following tips are easy to implement and will give you long-term peace of mind.

 

Secure trading online

 

Choose reputable platforms

The European Securities and Markets Authority (ESMA) sets regulations and directives for financial platforms in the EU. All trading platforms must adhere to these strict guidelines and protect investors from risks.

When choosing a platform, check its website for licensing information. The platform should list its regulatory status, which often appears at the bottom of the website or on a separate page.

If you’re unsure whether a platform is regulated for European consumers, the ESMA has a warning and publications section.

Safe-proof your trading account

Remember to protect your personal information and take steps to prevent unauthorised logins. Choosing complex passwords that don’t contain easy-to-guess phrases and avoiding using the same passwords can prevent hacking attempts.

Two-factor authentication can add an extra layer of security to your account. The trading platform will send a code to your mobile or use an app to verify that you are trying to log in.

If you receive a message and you’re not trying to log in, report the potential breach immediately
and change your password.

Protect your computer and software

You might not think so, but failing to update your operating system can put your devices at risk of breaches. As IT Convergence reports, many malware and ransomware scams succeeded because of outdated systems.

Installing reputable malware detection and anti-virus software is also beneficial because they regularly scan your device for potential breaches, providing instant updates.
Monitor the platform for security alerts

Reputable trading platforms will inform their users when potential problems occur. Checking for security alerts ensures you can take action if hackers compromise the platform and prevent them from stealing your personal information.

Even if you regularly use a platform, it’s always advisable to check whether it still has a valid SSL certificate. When you type the URL, you should see a padlock icon in the address bar, which confirms that an SSL certificate is in place.

Never trade on public networks

Public WiFi can provide internet access for people with limited mobile data, but it’s unsuitable for banking and trading. Unsecured connections make it easier for hackers to access data, whereas your private network is more challenging to breach.

Trading on a secured, private network and implementing additional security measures like VPNs is the best way to invest safely.

Use prepaid virtual cards

Naturally, cybercriminals will go to great lengths to access your payment information, resulting in significant losses and emotional pain.

Using an online prepaid card instead of debit or credit cards on trading platforms prevents hackers from accessing sensitive information. These cards aren’t linked to your bank account; you’ll need to preload them before usage.

You can use the card to invest without sharing personal information that hackers could access. It also comes with encryption and Mastercard 3D Secure 2.0 for added security.

As there are no credit checks involved, it’s easy to open and use a virtual prepaid card within minutes.

 

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Go through your account regularly

We advise going through your trading accounts regularly to check for any discrepancies. The statements will detail all of your transactions, including withdrawals. Contact customer service immediately if you notice anything unusual, and secure your account.

The bottom line

Digital trading makes investing in shares, forex, and cryptocurrency accessible to anyone, making it a beneficial way to diversify financial portfolios.

Yes, there are some risks associated with using trading platforms, but taking steps to secure your accounts can help you avoid cybersecurity threats.

To recap:

  • Know the risks of digital trading, and choose a platform authorised to operate within your country.
    When setting up your account, implement a password that’s hard to guess and enable two-factor authentication.
  • Check your operating system regularly for updates and implement them. Some updates take a while, but they are integral to keeping your computer safe.
  • Check the trading platform for regular updates and follow your gut instinct to determine whether it’s safe.
  • Using a prepaid virtual card means you don’t have to provide trading platforms with your bank account details. With the Getsby Black Card, you can order up to 25 single-load cards a month, creating a safe way to enjoy digital trading.

Order your Virtual Cards online

 Apply for a digital prepaid card online and receive the activation code via email within 2 minutes.

 

Get your Card now