Review of " Online Brokerage Fraud-Millions of Dollar Loss"

Based on the post of Online Brokerage Fraud-Millions of Dollar Loss, obviously this is due to lack of internet security. E-Trade Financial and Ameritrade might already try hard to design and implement the internet security system such as firewall, anti-virus, encryption and etc. However, hackers will still find out the weaknesses of such internet security system and try to break down that system. The question is why the hacker able to hack into the company system even though the security system is very strong. We think such a criminal hacking might be directly or indirectly done by the people who are very clear with the company’s internet security system and its weaknesses. The hacker might be the staff of the company especially those who involve in designing the system. Therefore, inspection should be done on those people as well. Furthermore, IDs and passwords might be stolen by outsiders and lead to the fraud cases.

Usually, the motive of hacker is to gain unauthorized access to the database of the company to destroy the data, change the information or to corrupt the company’s computer system for their own interest. The real example is stated on the post whereby the system of E-Trade Financial and Ameritrade had been hacked and lead to millions of dollars losses.

Besides facing financial losses, company at the same time will lose customers’ confidents. Customers are always concern whether their private information is filed properly in the company database. If hackers can easily access to the database, customers might worry their confidential information will be stolen especially for online banking system. Hackers might hack into the account of customers and make unauthorized transfer of money to hackers account.

In order to minimize the chances of internet fraud, company should always renew its internet security systems and always change the IDs and passwords.