Cybersecurity Tips to Keep Your Finances and Identity Safe
Cybercriminals aren’t always easy to detect. They can seem innocuous, like the person sitting next to you at a coffee shop, but they end up turning your life upside-down. Avoid the stress and struggle of regaining control of your financial life after an attack or theft. Instead, be pre-emptive, starting with these cybersecurity tips.
7 Steps to Protect Yourself
Your cybersecurity starts with your user IDs and passwords. If you keep them in a digital file, make sure that the document is both encrypted and password protected. Or consider using a password management system like LastPass. The bonus is that you have to remember only your master password.
Avoid using the same password for all your accounts. Once a cybercriminal gets their hands on that password, you could experience a domino effect as they gain access to multiple accounts and sensitive data. Your password manager can create unique, strong passwords for each of your logins.
Make use of multifactor authentication (MFA) for an extra layer of protection when accessing your data. You’re probably using MFA for some of your accounts—for example, when your bank texts you a code to log in. Multifactor authentication helps prevent crooks from gaining access. Check your email provider, social media sites, and financial accounts to see if MFA is an option—it probably is for most of them.
Phishing is a technique that scammers use to dupe you into believing that they are a reliable source requesting your personal information. Criminals send emails from what seems like a legitimate company, asking you to confirm data such as a Social Security number. Don’t be fooled; companies like banks will never ask you to confirm information they already have on file and certainly not by email.
Use a virtual private network (VPN) when using a public internet connection like your local coffee shop’s public Wi-Fi hotspot. Public hotspots can leave your login credentials and other information accessible to criminals.
A VPN will create a private network from a shared connection. It disguises your IP address and creates a secure and encrypted connection. There are many VPN services to choose from.
You can help protect yourself by using a PIN or fingerprint to unlock your cellphone. Also consider backing up your data to a cloud platform, offered by many mobile device manufacturers for free. And use a remote wiping service so you can delete your data in case you lose your phone or it gets stolen.
Only use websites with URLs that start with HTTPS (rather than HTTP). Check for the closed padlock symbol to help ensure your connection is encrypted. Keeping your website browser up to date will also help since most browsers provide warnings for unsecured sites.
Speaking of software updates, keep your anti-virus program up to date—but be wary of emails telling you to update the software. Your computer’s operating system should automatically prompt you to install updates. Scammers can mimic providers’ emails and trick you into clicking on a link, installing malware on your computer.
Steps to Take If You Are a Victim of Identity Theft
If your personal or financial information is stolen, first take a deep breath. Identity theft resources are available to help you recover. Here are three steps you should take promptly:
Call one of the three credit bureaus (Experian, TransUnion, or Equifax). The bureau you report the theft to must inform the other two agencies. You can place a one-year fraud alert and renew it every year. This will make it more difficult for criminals to open new accounts in your name.
Report the identity theft to the Federal Trade Commission (FTC). Opening a case will help satisfy businesses and creditors that your identity has been stolen and gives you specific rights and protections under the law.
Place a credit freeze and consider keeping it indefinitely. The freeze restricts who can see your credit report, making it more difficult for a thief to set up credit in your name. If you are applying for a loan, such as for a car or home, you will have to lift the freeze temporarily.
You’ve seen the news about major corporations being hacked and their data breached. Yet many times, you don’t hear about the attacks until months later.
That is why our Greenwood Village, CO fiduciary financial planning firm emphasizes that diligence is always required. By the time you learn about the breach, it may be too late, and the damage may already be done.
Consider signing up for credit monitoring with one of the three credit bureaus. You should also check your account balances and transactions weekly, making sure there is no unusual activity. Your bank and credit card company may offer email or text alerts for transactions.
We know it’s time-consuming to check account transactions and monitor credit. But it’s a much more complicated and painful process when your accounts are hacked and your identity is stolen. It pays to be conscientious and save yourself the trouble of fixing what a cybercriminal took only a few minutes to wreck.
Discuss your financial situation with a fee-only financial advisor. Schedule a complimentary discovery call.
This material was prepared by Kaleido Inc. from information derived from sources believed to be accurate. This information should not be construed as investment, tax or legal advice.
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