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One of the nation's largest online brokerages Charles Schwab recently hit with a massive cyber attack shut him down for a while.
Customers were able to trade online for hours both Tuesday and Wednesday of this -- remembered as the week that apple reported big surprise right.
The company since result -- issue although it's CEO is warning more attacks more acts can come in the future.
Navigating online trading seems harder than ever so how do you do it and what should he didn't sit stay safe.
Chuck Jaffe senior columnist at MarketWatch and host of money like with Chuck Jaffe it's great to have you once that with me here today thanks for coming handled -- that really really appreciate your time.
What do you make of the.
Health snapped -- well first off you have to recognize that.
That denial of service attacks are gonna happen and it's not just going to be Schwab it's going to be every brokerage firm because that's the culture that we live in the real question is.
I don't want to embrace it though check I mean at the end of today.
More and more of these things make me feel less and less comfortable not just with my online brokerage but also with my bank -- I agree with that and then the question becomes.
All you're doing things where this is going to actually be a real disruption.
You know if you're an average investor or you're not necessarily doing that much trading in the idea that you say okay it's time for me to buy stock -- that I get the order in right today.
That's not gonna make a lot of difference -- -- buy and hold investors gonna hold something for a matter of years using your trading rapid.
And you're saying hey I -- -- got out well.
Then you've got those issues and owned by the way.
It's not denial of service it's if you're trading on the -- you're behind the pros anyway they're faster they're quicker.
And they are -- you for pennies anyway as you -- begin and so what do you say that I shouldn't be trading on the app that I should be.
Doing -- well.
For the average investor no you don't -- -- trading on the app if it's actual trading if it's I want to make a transaction.
That's fine go often do that and if -- app helps you more power to you but if the idea is.
I want to be in a situation where I'm trying to trade in and that -- a trade out five minutes later or ten minutes later or what have you.
You've got some bigger issues and yet the technology is just one of them but you know -- probably gonna come out.
My view on this is that there is truly an uneven playing field for individual investors and if you think the -- can be.
The pros out there in terms of executing a trade getting the best price for trade forget about it.
Well I agree with that but that's why you was an individual investor and average investors shouldn't try to beat the pros at their own game.
The ideas either to hire them to help manage your money or to say I'm not gonna try to get every little penny I'm gonna try to capture that long term trend.
Too many people are worried about what's happening right now and oh by the way -- are missing out on what's going on in the long stretch.
If it's sort of cold comfort -- I gotta tell you up because these denial service attacks do concern me and I do worry about not having access to my money -- my investments when I want it.
There was a report today from the financial stability oversight council they're taking a look at these denial of service attacks here's what they said.
During 2012 more than a dozen financial institutions -- distributed denial of service attacks to their public web sites.
All of which were attributable attributable to a single group.
With this recent experience a financial sectors become increasingly adept in identifying assessing preventing and mitigating cyber risks.
That's -- -- my original reaction to that was to really believe that.
Well think about it didn't go and get away from denial of service and just go to some of the other things the fishing expeditions there whose lost their security you now to how information is out there and all the right of sorts of things that you know that that's what they're gonna wind up doing you were talking earlier on the show about scams well.
Hey if they don't understand you if they can basically cracked the code someplace and go -- and get some apps.
Access to your accounts -- what do you say about being safe.
Well you take every precaution to be safe and I think a lot of folks.
-- kind of get casual on what they're doing out on the flip side of it is is that -- you know as much as we love the convenience.
There are still a whole lot of people who sit down every month than they do it from home and they don't have to go you know.
They they take it the most secure computer they're working at the do it on a regular basis they don't have anything that -- So if anything happens and if you pay your bills on the first in the fifteenth and suddenly there's an app that shows up that makes it look like to pay on the 27.
Some goofy there.
And you recognize it really fast when you.
-- really -- sat straight for most secure secure computer you've got.
Do your payments regularly you're investing regularly and then you know it's -- weird -- strange we ran through that quickly but I think that's great advice.
Chuck thanks for coming in tonight it's so great to -- got to come back sometime soon.
I look forward to thank you.
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