Posted on March 30, 2023 at 12:17 PM

FX brokers at risk of DDoS attacks as campaigns increase by 167%

There has been a notable increase in the distributed denial-of-service (DDoS) attacks targeting FX brokers, with those based in Cyprus being targeted the most. According to the “DDoS attack trends for 2022 Q2” report by Cloudflare, attacks against Cypriot targets increased by 167% compared to the previous quarter.

Cyprus sees a record increase in DDoS attack

The goal behind a DDoS attack is to disrupt the normal operations of a website, web application, or web service by sending unwanted traffic that usually originates from a botnet. DDoS attacks can bring down infrastructures and cause significant harm to an organization, triggering revenue loss, reputational damage, and loss of customers.

Forex brokers have become a target for hackers who want to launch DDoS campaigns. FX brokers usually rely on online platforms to offer their services. Moreover, the end customers of these online platforms can be demanding and sensitive to the availability of the portals.

Forex brokers are also known as wealthy institutions, which is why financially motivated attackers target them. FX brokers also have a global clientele base and a vast brand awareness, attracting more attention. Most forex brokers are also vulnerable to DDoS attacks because of their rapid growth, short go-to-market speed, and rapid growth.

DDoS attacks are usually used to extort the target organizations, and some cyber criminals use the attacks to fund their activities. Therefore, most hackers launching DDoS attacks are doing it for monetary benefits, not fame.

Cyprus has been under the threat of increased DDoS attacks. The island has less bandwidth than mainland traffic, making it easier for hackers to launch malicious traffic on individuals and organizations in the country. If a DDoS targets a company in Cyprus, it can affect the entire ISP network, creating massive losses.

The vulnerability of companies based in Cyprus to DDoS attacks leads to them moving their critical services to data centers in the EU mainland. However, these companies are still vulnerable to attacks because some services will still be based in the country and company offices will still rely on the internet.

It appears as if a new wave of DDoS attacks happened in Q1 2023. According to Cloudflare, the number of DDoS attacks targeting its customers increased in the last few weeks. However, the attacks were shorter in duration, and there were no accompanying emails requesting funds to stop the attacks. This could show that the hackers were testing the waters to identify the vulnerable targets first.

How companies can protect themselves against DDoS attacks

Given the increased threat to security posed by DDoS attacks, there are steps that companies can take to protect themselves from these attacks. The attacks can be prevented using DDoS protection solutions and DDoS protection providers.

The attack traffic usually compromises the target before it is detected, which is where DDoS protection solutions come in. These solutions use local equipment to analyze traffic and to determine when an attack has started. An effective DDoS protection strategy will stop the attack before it enters the target infrastructure.

However, in some cases, these protection solutions do not work. This usually happens with on-demand solutions where the protection solution is on standby and it is waiting to kick in. Such solutions usually rely on third parties, and they assume that all the parties are compliant.

Additionally, DDoS protection services can be deemed expensive if an individual is looking to protect their infrastructure. This is the main challenge faced by ISPs because if one of their customers is attacked, it could lead to the entire network being deemed unstable. Therefore, some ISPs can route traffic through other locations for the traffic to appear on mainland scrabbing centers.

The companies that are operating in countries such as Cyprus have to adopt the best DDOS protection services that will protect their platforms from these attacks and guarantee that services continue normally on these platforms.

Some cybersecurity companies that offer DDoS protection services invest in the latest technologies for their offerings. Cloudflare is one of the reliable cybersecurity companies that use Magic Transit technology to protect infrastructures alongside the L7 DDoS and WAF protection.

The comprehensive solution offered by the platform boosts efficiency and reliability. It also allows companies to have peace of mind when they are going about their operations. Businesses are also advised to go with cybersecurity solutions that meet their needs.