Photo by Philipp Katzenberger on Unsplash
Cyber crime is on the rise. It’s costing people like you and me very real money, well into the billions of dollars world-wide. Cyber criminals are growing increasingly clever, with new tools and techniques being developed to deceive.
One of the biggest tragedies of this type of crime is who it primarily targets: seniors living on a fixed income. Since the vast majority of my clients are age 50 and above, I wanted to dedicate some time today to exploring a few recommendations to help keep your financial accounts secure.
Use strong passwords or a password management tool
A strong password should be the first step to secure any financial account. Short passwords, passwords used on other websites, and passwords containing information about you that’s easy to find out (like your date of birth) should not be part of your password.
But we live in an online world! If you’re like me, you probably have 50 different online accounts that require a password to access. How can you remember all these different passwords if they shouldn’t be repeated? The best solution is to use a password management tool. There are a lot of them out there like Dashlane or 1Password. The key attribute of these is twofold. First, their high level of encryption, and second, their use of a passphrase to secure your passwords.
Passphrases are longer than passwords, and are simply a phrase that only you know. Because the length is longer than typical passwords, they’re harder to crack, and the phrase aspect makes it easier for you to remember. So your passphrase could be something like “littlemissmuffetsatonhertuffet”. Typing that phrase into your password manager will unlock access to all passwords stored in the tool.
Enroll in two-factor authentication
This additional step allows a website to authenticate you using an alternate device, usually your phone. You’re probably already familiar with it. You login to your account, and two-factor authentication will request to text a code to your mobile phone which you’ll then enter on the website. It’s easy to set up, and provides an added level of security.
Use biometric security
The gold standard in cyber security to this point seems to be biometrics. This security feature uses a fingerprint or facial recognition to provide access to your accounts. Most mobile devices are equipped with it. It’s a brilliant tool, because no two fingerprints and faces are alike. It also means you may not need to create new passwords or use a password management tool.
If you don’t use biometrics for logging into accounts on your mobile phone, I highly recommend it. It’s the strongest form of security today, and there’s even talk about moving away from passwords entirely in favor of biometrics.
Be aware of email scams
Password security is one thing, but cyber crime can reach you through your email inbox as well. It’s incredibly easy to impersonate a local bank or other financial institution you trust, but cyber criminals often leave suspicious clues.
An email attempting to steal your information will usually contain a link to click, or a program (disguised as a PDF or other document) to download. Your bank or other financial institution doesn’t send you information this way unless you request it. In addition, your personal identifying information, like a date of birth or social security number, will also never be requested in an email.
If you receive an email requesting you to click a link, download an attachment, or send your social security number, password or date of birth, it’s a scam. Report it to the business being impersonated.
Keep you contact info up to date
Finally, in the event that there is a breach of your financial account, the business likely has steps to help address these issues, but they need to be able to reach you! Make sure your contact information is current and up to date with your bank or investment company. Time is of the essence in data breaches, so the faster they can contact you at a valid email address or phone number, the better.