The digital revolution has been underway for some time. Companies across several industries are still adapting to new tools and technologies. In 2018, companies spent over USD 1 trillion on their “digital transformation”, upgrading operations in search of a competitive edge. The stock market has also changed a lot. Now, investors can count on automated order executions, investing apps, and a host of tools for predicting market swings.
The Rise of Online Investing Platforms
Online investing platforms have become hugely popular, which is demonstrated by their market size. Last year, this market went above USD 9.5 billion, and it’s likely to grow at a CAGR of 7.3% until the end of the decade. It’s easy to understand their popularity: investors can access them via smartphones.
Online investing apps democratized access to the financial market, educating and empowering their users. Such apps can be customized to fit the user’s interests while giving access to a healthy variety of investments: EFTs, stock exchanges, bonds, etc.
Cybersecurity Risks in Online Investing
Unfortunately, digital technologies have also empowered scammers. Cybercriminals target the stock market with ransomware, malware, phishing, server misconfigurations, and more. It’s up to investing platforms to scale up their defenses against cybercrimes and fraud.
FBS, a Forex trading website, gave an example of negligence. It left one of its servers completely unprotected, without encryption or even a password, which means nearly 20 terabytes of critical user information was open for grabs. Investors must ensure that their platforms have reliable security protocols in place.
Data Security and Online Trading
Amid so many cases of data theft and other cybercrimes, data security has become mandatory for online trading. Online trading involves the exchange of sensitive information across all parts, making them very appealing to hackers. The most reliable platforms have implemented security measures like multi-factor authentication, heavy encryption, and firewalls. They also update their software regularly against new threats.
Protecting Yourself from Investment Scams
While investing platforms are responsible for their security systems, investors can do a lot to reinforce their safety. With a little attention and caution, you can improve the protection of your personal data, avoiding phishing emails, social media scams, or fraudulent websites. Scams and frauds can be uncovered if you take the time to do your own research. Unsolicited offers and offers that are too good to be true should also be avoided.
The Role of Technology in Investment Management
Recent technologies like AI and big data analysis have transformed the financial market and, consequently, investment management. AI tools help investors with predictive analysis, strategies, insights, and customized risk adjustments. Additionally, AI-powered tools can pick subtle trends and react in real-time, allowing for dynamic resource allocation.
Investing in the Future
Investments in digital transformation are on the rise worldwide. According to market projections, companies have invested about USD 2.5 trillion in digital technologies this year and are likely to invest USD 3.9 trillion by 2027. The financial market increasingly relies on AI-powered systems and defensive technologies, which have become mandatory for big and small investors.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
