It seems like not a day goes by without seeing a friend on social media saying their account has been hacked or receiving a suspicious text or email angling for personal information. In today’s digital world, protecting your finances is more important than ever. Falling victim to cybercrime can have significant personal financial consequences, ranging from a few dollars to thousands of dollars in losses. These losses can include costs associated with stolen funds, data recovery, legal fees, and reputational damage. Being proactive in protecting your personal information is no longer optional. You can and should safeguard your finances by proactively enhancing your personal cyber security profile.
Common Cyber Scams are on the Rise
As individuals, we face various cyber threats, including identity theft, phishing scams, and malware attacks nearly every day. The FBI’s 2022 Internet Crime Report revealed that complaints and losses related to cybercrimes have increased 300% over the past five years, with people aged 60 and older being hardest hit. In 2022 alone, seniors in America reported over 88,000 complaints totaling $3.1 billion.
As individuals, we face various cyber threats, including identity theft, phishing scams, and malware attacks nearly every day. The FBI’s 2022 Internet Crime Report revealed that complaints and losses related to cybercrimes have increased 300% over the past five years, with people aged 60 and older being hardest hit. In 2022 alone, seniors in America reported over 88,000 complaints totaling $3.1 billion.
The list of cyber threats continues to grow so rapidly because it takes time for people to adapt their attitudes and behaviors to match new threats. Criminals know that their chances of success are higher when they stay ahead of the behavior curve. There is a reason why most of us won’t get mugged in a dark alley but will end up having our credit card information stolen. For the most part, people avoid being alone in dark allies these days (at least, I hope you do). But it’s far more difficult in the modern age to avoid being online. We’ve stopped walking down dark alleys because we are aware of the risks. But by the same token, we haven’t yet developed an equal sense of wariness for online activities and behaviors that are demonstrably riskier in today’s modern world. It’s very easy to let your guard down when scrolling online from the comfort and privacy of your living room couch. It’s also very human to make faulty split-second decisions when you’re stressed and distracted at work, and that email claiming to be from HR pops into your inbox.
Improve Your Cyber Security Profile
Are you suspicious when you receive unexpected or unsolicited phone calls, emails, and texts? Are you judicious in what personal information you share online? Do you check your email and financial statements regularly for suspicious information? It can be exhausting to feel like you must constantly be on your toes. But there are steps you can take that will help you feel more at ease and confident while safely going about your business online.
The first step to improving your personal cybersecurity profile is to evaluate your current cybersecurity practices. Common vulnerabilities and areas for improvement are poor password management practices, unsecure use of public Wi-Fi networks, outdated software or apps, clicking on phishing texts or emails, and accessing unsecure websites. So here are three steps you can take right now to improve your personal cyber security profile.
1. Strengthen Your Passwords
Are you part of the 70% of people who use the same password across several personal accounts? They say misery loves company, but this is one party you should consider leaving very quickly. The days of using simple passwords are long gone. It is essential to use a unique, complex password for each online account you have. But don’t fret! You do not have to remember every single one of these unique passwords.
We recommend using a password manager like 1Password, LastPass, or Dashlane. Setting up a password manager is an initial time investment but completely worth your while.
We also suggest opting for two-factor authentication (“2FA”) as an additional layer of security wherever possible. You may have used 2FA before without knowing it. A common example is getting a text with a code at log-in. Even better, you can use your own 2FA app like Google Authenticator or Authy when logging into sensitive accounts.
2. Secure Your Devices and Data
Updating your software is another crucial foundational defense: web browser, device operating system, anti-virus/anti-spyware. App developers are constantly updating their products based on customer feedback, particularly surrounding vulnerabilities. Staying on top of the latest updates is an easy but essential part of practicing good cybersecurity hygiene.
When out and about, be cautious about hopping onto Wi-Fi networks. From Starbucks to the doctor’s office, most places offer complimentary Wi-Fi access for visitors. But be careful when joining unknown networks and remember to glance at those Terms of Service to see what personal data might be collected.
It’s critical to back up your data to protect against data loss. It is relatively easy to back up automatically using iCloud for Apple products or other cloud-based services such as DropBox. A backup via iTunes to your home PC or an external hard drive can provide additional protection. Just remember, occasionally, make sure your devices are backed up, so you don’t get caught by surprise when you drop your phone in a lake.
3. Guard Personal Information and Liabilities
Always be cautious when sharing personal information online, and consider sharing less on social media platforms. While tedious, do pay attention to the terms of service with your social media apps – it’s essential to regularly review privacy settings on social media and other online platforms.
A very effective way to stay on top of scams is to regularly monitor your financial accounts for suspicious activity. Setting up account alerts and notifications for financial account activity is relatively easy. Some folks set up text alerts for transactions greater than a certain amount.
And remember: When it comes time to retire your electronic devices, dispose of hard drives and old phones safely and securely by wiping them first.
Conclusion
In today’s rapidly changing world, taking proactive steps to enhance your cyber security is essential. Consider implementing some of these strategies to protect your financial and personal information. Enjoy a safer and more secure financial future by upping your cybersecurity game today.
WHWM is here to help you identify your priorities, develop a plan, and adjust along the way. Putting your trust in WHWM means working with WHWM’s Founder and President, Stephen Bodwell, a CFP® professional committed to helping you achieve your financial goals and big dreams. Take the next step towards getting what you want in life. Schedule your complimentary, no-obligation 30-minute consultation today.
Walnut Hill Wealth Management, LLC (“WHWM”) is a registered investment advisor offering advisory services in the State of Texas and in other jurisdictions where exempt. The information provided is as of the date indicated and is subject to change.
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