When it comes to handling our finances, the digital age has brought about a revolution. Whether it’s managing expenses, making investments, or just transferring funds, the convenience and accessibility offered by digital platforms have completely transformed the financial landscape. Trade stocks on your online demat account, set up convenient SIPs, and make seamless payments with UPI – all with just a few clicks from the comfort of your home!
But unfortunately, these conveniences don’t come without some vulnerabilities such as cyber fraud, phishing attacks, hacking, and malware. It seems like every other day, we read about a new scam making headlines, leaving us all feeling a bit uneasy about our hard-earned money. Naturally, these stories can make one fearful. But fear not, my friends! When you are aware and know all about the ways you can protect your finances, you will find there is no need to feel anxious when just a little precaution will do. Consulting with a financial advisor can provide invaluable guidance on safeguarding your wealth and investments. We’ll share seven tips that can help you keep your accounts and investments digitally secure.
1. Strong Passwords and Multi-Factor Authentication:
Your first shield against cyber fraud is your password. Often, people make some basic mistakes when creating a password such as using their name or their kids’ names, using the birthdays of people close to them, using the same password for different accounts, and using common phrases.
Using personal information in passwords makes them guessable, which makes you more vulnerable to criminals. So when creating a password, firstly you should avoid these mistakes. To create a strong password, you must use a combination of uppercase and lowercase letters, digits, and special characters. The longer your password the better because then it’s harder to guess and almost impossible to brute force.
Now let’s address another common problem. These days we have so many accounts – email, banks, demat accounts, shopping, streaming, and the list goes on. And since you should use different passwords for each account, you might find it hard to remember them all. First things first, do not write down your passwords anywhere, especially any passwords related to your finances. That is just inviting trouble. If you are finding it hard to remember them, you can consider using a reliable and reputable password manager. A good habit to adopt is regularly changing passwords. Updating can boost your account security.
Another way to improve security is by enabling Two-Factor Authentication, or 2FA. You’ll find the option to enable 2FA in various accounts. Turn it on wherever you can. This will give you an additional layer of security on top of your password. With 2FA, whenever you log in you’ll have to enter your password along with a One Time Password (OTP) sent to your registered mobile number or email. This way even if someone gets their hands on your username and password they wouldn’t be able to access your account. Remember to never share your OTP with strangers.
2. Keep Software Updated:
Another way one can exploit digital vulnerabilities is outdated software. Developers regularly update software and release new versions of apps and devices that remove these vulnerabilities and make your finances more secure. This is a perpetual process and security flaws are patched as soon as they appear. That is why it is crucial to stay on top of updates for your device software, including iOS, Android, and Windows, as well as financial apps like banking and demat accounts.
You can easily do this by regularly checking for updates on the Google Play Store or App Store, or by simply enabling auto updates. By keeping your software up to date you can minimise the risk of falling victim to criminals exploiting known weaknesses. Also, verify that the apps you are downloading on your device are legitimate. Always download the file from a trusted source and never a setup.exe or a .apk file from a website or email.
Also Read: Breaking Free from the Hedonic Treadmill: How to Protect Your Finances
3. Be Wary of Phishing Attempts:
It is often said that the weakest link in cyber security is the human element. Phishing exploits exactly this vulnerability. Simply, it means tricking people into revealing sensitive information such as bank passwords, credit card information, or OTPs. The criminals attempt to ‘fish’ the information out through phone calls, text messages, emails, and WhatsApp messages. For example, one day you might get an email or a message from your bank claiming they need important account details for verification purposes.
Another day someone may message you on WhatsApp and claim that you’ve won a lottery and you only need to give your bank details to receive the prize. There are many, many ways these frauds try to steal your money. Often there are links included in the message where one can enter these details. Remember that even opening such links can pose a big risk, as they can be a gateway for cybercriminals to install malware on your device. Always avoid clicking on suspicious links or attachments.
The best way to prevent phishing attacks is to exercise caution and scepticism when you receive any unsolicited messages, emails, or phone calls. Verify the authenticity of the communication by contacting your bank or any other investment or financial organisation directly through their official website or phone number.
4. Monitor Your Accounts:
Another proactive approach against cyber fraud is regular monitoring of all financial accounts. With the abundance of UPI apps, net banking services, credit cards, and banking apps available, we have a plethora of options for making digital payments. It’s very important to review our bank statements, credit card payments, and online payment accounts regularly to ensure that all the transactions made are legitimate and authorised by the account holder.
Other than a regular review, you can enable notifications on your phone or computer that alerts you whenever you make a payment. This will help you catch wind of any suspicious activity on your accounts immediately, and you will be able to take quick action. Beyond notifications you can even enable text message alerts for all your transactions on your mobile banking app, so you don’t get caught off guard if there are internet issues.
If you notice any unauthorised activity, contact your bank immediately.
5. Use Secure Networks:
Online transactions should ideally be conducted on a secure network. When you are outside your home, try to use your mobile data for transactions. If that’s not possible, make sure that the Wi-Fi network is secure and password protected. When you access your sensitive banking information on a passwordless public Wi-Fi network, you run the risk of exposing your personal and financial data to hackers and cybercriminals.
They can intercept this information and harm you. Avoid public Wi-Fi networks, but if you have no other option at all, you can try using a Virtual Private Network (VPN). Simply, a VPN helps keep your data private.
Also Read: Have You Heard of The Online al Fraud
6. Secure Your Devices:
Your device such as a personal computer or phone is your gateway to the internet. If your device itself is compromised it opens the door for cybercriminals to access your sensitive information. Besides keeping your devices and apps up to date you should always download apps from a reliable source such as Google Play Store or Apple App Store. This includes not just apps related to finance, but all applications you install on your device. To protect your device from viruses and malware install a trusted anti-virus software, and regularly update that as well.
When it comes to physically securing our devices, it’s a common practice for almost everyone to lock their phones, which is excellent for added security. If you haven’t already done so, you can secure your phone by setting passwords, patterns, and MPINs, or using biometrics such as fingerprints and face scans. This added layer can protect your data in case your device gets in the wrong hands, lost, or stolen. A relatively new feature that greatly helps in case one’s device gets lost or stolen is device tracking and remote data wipe. Device tracking lets you locate your device’s whereabouts using GPS, and remote data wipe allows you to log out of your accounts and delete all the data on your device remotely. If your device has such features, enable them for extra protection.
7. Educate Yourself:
The more knowledge you have about cybersecurity threats the more confident you will feel treading the online world and safeguarding your sensitive information. You are taking that step by reading this very blog! You’ll find that the more tech-savvy people are more confident simply because they are more aware. Learn about the latest cybersecurity threats and prevention techniques.
Educate yourself about common scams and fraud schemes by reading the news. You may feel anxious reading such stories and that’s alright. It’s important to take lessons from such experiences and use them to bolster your own cybersecurity awareness and defenses. It helps you quickly spot a threat so you can steer clear of it. In a nutshell, the more you know, the less you’ll be afraid, and thus, the better equipped you’ll be to navigate the digital landscape confidently and securely.
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Conclusion:
The digital world evolves quickly. While we’re getting more and more convenient methods to manage your finances, we are also getting exposed to more cyber threats. While strong passwords, 2FA, regularly monitoring accounts, updating software, and using secure networks and devices are important measures to protect ourselves, staying informed and vigilant is what makes all the difference in safeguarding our finances in the digital age. Knowledge about scams and phishing attacks helps us recognise and avoid threats and makes us more confident in the way we manage our finances.
Stay alert, and stay secure!
