As the world blends into the “the new normal” and office confines to “work from home” culture, businesses are facing new challenges to combat; cybersecurity. Therefore, it has become imperative to be extremely cautious to prevent any cyber-attack.
The rise of cyber-attacks amid the Covid-19 pandemic rose by almost 300% last year in the country to reach 1,158,208 compared to 394,499 in 2019 as stated by the Union home ministry, citing the data from the Computer Emergency Response Team.
Majority of these cyber-attacks cost dearly especially during financial transactions such as data theft, stealing of financial information, money laundering, etc. during trading and investing online. The simplicity, convenience and immediate access of these financial platforms has made traders and investors casual with behaviour over the time.
In order to keep one’s securities safe in the demat account, one needs to avail the benefits provided by these depositories for safe and secure transactions.
From omitting brokers to changing passwords here are some ways investors can exercise caution.
Empowering investors by omitting brokers
Depositories have introduced online services to empower a demat account holder in managing their securities from any corner of the world at any time in an efficient and protected way. Such facilities allow BO (Beneficial Owners) and CO (Clearing Members) to operate demat accounts by themselves and keep a track of their holdings and transactions
To have passwords that are complex and change them frequently
Sometimes most incidents can be avoided by following simple steps. For example changing passwords frequently and adding complex passwords that include special characters and numbers along with a mix of capital and small letters. Avoid using the most obvious passwords such as birthdays, anniversary dates etc. Traders or investors should also avoid using unsecured or unfamiliar Wi-Fi networks. Refrain using the same passwords everywhere e.g., for online banking, trading account etc. As compromising on passwords will lead to unauthorized access to all financial accounts
Be sure of devices you are accessing your trading accounts from
It's understandable that it's not always possible to access a trading account from one’s device. Therefore before logging into your account from any other device, make sure that the given device is installed with an updated anti-virus and anti-spyware program to avoid any mishaps. Ensuring that you have logged out from the application before returning the device is also one of the way to prevent access to trading accounts. It is advisable to avoid storing of passwords in browsers for all financial accounts. This will prevent misuse by anyone having access to the device.
Avoid accessing demat account through public Wi-Fi
One of the easiest places for hackers to cause cyber attacks or theft is through public Wi-Fis used in airports, railway stations, malls, coffee shops etc. It is imperative to avoid such circumstances, however, at unavoidable times, make sure that you log in and log out from the demat account frequently and ensure that your cache is cleared at the end of each day
Importance of two factor authorization
In order to avoid misuse of the authorisations, depositories have introduced two factor authorisation for safe transactions. The user accesses the account via TPIN after which OTP is shared over cell phones for further validation and therefore in this way, it provides an additional layer of security for the BO (Beneficial Owners) and prevents unauthorized access
Keeping a vigilant eye throughout and can help safe and secure transactions and prevent data loss. However, one needs to ensure regular checks to reduce the chances of such attacks to minimal.
(The writer is Chief Technology Officer at Central Depository Services India Limited)