Cybersecurity Awareness Month, observed every October, highlights the importance of online safety. With frequent data breaches, nearly everyone’s data has likely been compromised. The “presumption of breach” principle advises us to assume our data is exposed and focus on proactive measures to secure our financial future. While you can’t prevent data theft, you can control your response. Key practices like monitoring accounts, freezing credit, using multi-factor authentication, staying vigilant against phishing, and employing a password manager can greatly reduce risks and enhance your financial security.
1. Monitor Your Financial Accounts
Regularly monitoring your financial accounts is one of the best ways to catch fraudulent activity early. Thieves often start with small, unnoticed transactions before escalating to larger actions.
To protect yourself, check your bank, credit card, and investment accounts often—ideally weekly. Many financial institutions offer alerts for unusual activity, and you can set up notifications for transactions over a certain amount.
Consider using apps that aggregate your financial data, giving you a single view of all accounts and alerting you to suspicious activity. Proactive monitoring helps you act quickly and avoid significant losses.
2. Freeze Your Credit Accounts
Freezing your credit is a strong defense against identity theft. It blocks access to your credit report, making it hard for thieves to open new accounts in your name. The process is free and easy: simply request the freeze from Equifax, Experian, and TransUnion. While your credit is frozen, you can still use your existing accounts. If you need to apply for new credit, you can temporarily lift the freeze. Reinstating the freeze afterward ensures continued protection. In a world of widespread data breaches, this is a key step in preventing identity theft.
3. Use Multi-Factor Authentication (MFA)
Multi-factor authentication (MFA) boosts online security by requiring both a password and an additional factor, like a code sent to your phone. This is vital for financial accounts, as passwords alone can’t fully protect against hackers. MFA involves a trade-off between convenience and security, but it’s an easy and effective way to protect your data. Most institutions offer MFA, so enabling it is essential for safeguarding sensitive information. While text message-based MFA is common, using a popular authentication app offers better security.
4. Cyber Thieves Are Phishing for You
Phishing attacks are increasing, with cybercriminals using texts and emails to trick you into revealing personal information or downloading harmful software. These scams often impersonate legitimate institutions, creating a sense of urgency or requesting sensitive data. Be proactive in protecting your email and text messages—strangers should not intrude on your privacy. Be cautious of any message urging you to click links or download attachments, especially from unknown or suspicious sources. If in doubt, contact the institution directly using a verified number to confirm if action is required.
5. Use a Password Manager
Weak passwords are a significant cybersecurity risk. They are often short, use common patterns, or include personal information, making them easy to guess. For instance, “Alice72” can be cracked in under a minute. A password manager creates and manages strong, unique passwords for all accounts, storing them securely. While there’s a trade-off between convenience and the risk of the manager being hacked, it’s generally worth it. Without a password manager, poor password hygiene increases breach risks. Our firm uses RoboForm, but other excellent options exist. Although adjusting to a password manager takes time, it offers better security and is easier to use than traditional methods.
Protecting your financial future requires proactive steps. Regularly monitor accounts, freeze your credit, use multi-factor authentication, stay vigilant against phishing, and use a password manager. These actions significantly reduce cyber risks and safeguard your financial security. In today’s world of frequent data breaches, it’s wise to assume that nearly all our personal data is on the web. Given this, taking proactive measures to thwart cyber criminals by adopting savvy and cyber-smart practices is essential.