Everyone has locks
on the door to discourage thieves or unwanted visitors from entering the workplace or home. Many people, however, don’t take the same basic safeguards for Internet connections, even though their computer is exposed to illegal entry by millions of users every time they are online.

Hackers lurk in every corner of the Internet, looking to gain entry to unprotected computers and networks. They do so through viruses that can destroy important data and wreck operating systems. Or through ingenious software programs that allow intruders to scan and control computers and download confidential data.

A recent survey by Consumer Reports found computer users have a one in three chance of suffering computer damage or financial loss because of attacks on their computers.

How bad is it? The survey estimates Americans suffer US$9 billion a year in damage
from attacks such as viruses or spyware and Trojans, which are programs that infiltrate computers and report users’ surfing activities to third parties or that allow someone to access their files remotely.

While safeguards such as anti-virus and anti-spyware software are a must, advisors need to go the extra mile and put in firewalls, computer experts say. The firewall should be the first layer of protection between your computer and its Internet connection.

“I don’t think a lot of advisors have it clear in their heads the distinction between firewalls and anti-viruses and anti-spyware. We need all three,” says Kevin Cork, a certified financial planner with FundTrade Financial Corp. in Calgary.

Anti-spyware and anti-virus protections are software programs that scan your computer and remove offending programs that have infiltrated your system. A firewall, on the other hand, is like a door to your house. “It keeps people out [whom] you don’t want in,” says Derick Wong, senior product manager of security products at Microsoft Canada in Mississauga, Ont.

As the first line of defence, a firewall scans the traffic going into your computer and determines if it should be allowed in or kept out. “When someone knocks on your door, you look through the peephole to see who it is and you make a conscious decision to let people in or keep people out,” says Wong. That’s what a firewall does.

Adds George Sluz, group product manager in the Boston office of security software maker Symantec Corp. : “Basically anybody on the Internet can get access to your computer. A firewall is a protective device that screens who can get access to your computer and who can’t.”

What a firewall does, Sluz says, is make your computer look totally invisible to the Internet.

What hackers do is scan the Internet looking for vulnerable access points and unprotected computers. When they find them, the trouble starts.

In the worse-case scenario for a financial advisor, a hacker could gain access to the advisor’s computer or its network and steal information, such as passwords or confidential client information that may stored in electronic files. The hacker could access client bank accounts or brokerage accounts and personal information, such as names, addresses, credit card numbers or portfolio holdings. The thief could then sell the data to crime groups, which use the information to steal people’s identities and gain access to bank accounts or obtain credit using the advisor’s name or the client’s name.
A firewall is the first hurdle to preventing such activity.

There are a number of options when it comes to choosing firewalls.

First, you can simply use a firewall software package that runs on the desktop or a laptop computer. There is no shortage of offerings and some even come free with operating systems.

For example, Microsoft includes a firewall with its Windows XP Service Pack 2 system, Wong says. Service Pack 2 is the most up-to-date package of Windows XP.

You can also buy stand-alone software packages from a number of vendors, usually for $60 or less.

For example, PC Magazine, one of the leading consumer computer magazines, has given high ratings to programs from following firms:

> Symantec’s Norton Personal Firewall 2005 for $60 (download from www.symantec.com);

> McAfee Inc. , which has Personal Firewall 6.0 for $50 (available from www.mcafee.com);

> Zone Labs LLC of San Francisco (www.zonelabs.com), which makes ZoneAlarm Pro for US$49.95

Stand-alone device

@page_break@A firewall can also be a stand-alone computing device, similar to an external modem, often called a “router” or an “appliance.” This type is good for home networks and allows multiple computers to run off one box. The firewall device simply sits between the computer(s) and the Internet connection.

For example, Sluz says, Symantec has the Gateway Security 300 Series, which comes with the software already installed and configured. Designed for small businesses, users simply unpack the device, plug it in, provide information about the Internet connection and set up a password.

Stand-alone firewall devices cost more, depending on the features. For example, the Gateway 300 costs $449, but it’s a fairly sophisticated device that solves a lot of problems. It handles multiple computers and allows users to establish a local area network. It can also act as a wireless access point.

If you are using a laptop with a wireless connection, chances are the wireless router that you use to access the Internet does not have firewall capabilities — so it’s important to add such protection, Wong says. That means using either software on the laptop or installing a firewall device in association with the wireless router and access point.

One trend in software is to package together all the necessary protections. So if you’re
shopping for a firewall, you can find all-in-one packages that include virus protection as well as anti-spam and anti-spyware tools.

While firewalls sound complicated, they’re not. Using one is like piecing together a stereo system if you are using a boxed device, or it can simply mean loading more software on your computer.

Setting up a firewall is relatively simple, Wong says. Users need to configure the firewall device by providing information about the Internet connection they have and creating a password.

Wong says problems can arise if something has been configured improperly or if “you forgot to close off a port” — the gateway that hackers use to enter a network. This means you have left a window open for an intruder to enter. When sensitive information is involved, it’s a huge mistake that advisors can’t afford to make. IE