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Stock trading apps have millions of users worldwide and process billions of pounds in traded shares but the security of the apps compares poorly with comparable mobile banking applications, security firm IOActive warns.
Hernandez put 21 of the most used and well-known mobile trading apps available on the Apple Store and Google Play through their paces. Testing focused only on the mobile apps; desktop and web platforms were not tested. Both shortcomings make it possible for miscreants to run man-in-the-middle attacks to eavesdrop and tamper in cases where users are using public Wi-Fi hotspots without taking adequate precautions, such as using VPN software.
The results for trading apps proved to be much worse than those for personal banking apps in and The app developed by a brokerage firm who suffered a data breach many years ago was found to be the most secure of the 21 apps tested. IOActive notified app developers of the issues it uncovered only earlier this month, following completion of its research. It is currently going through the disclosure process hence its decision not to release the names of the apps it tested.
The security firm is encouraging regulators should encourage brokers to implement safeguards for a better trading environment.
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