Protecting Your Financial Future: 7 Essential Tips to Keep Your Financial Information Secure

As a financial advisor, one of my top priorities is ensuring that my clients not only grow their wealth but also protect it. Financial security is about more than making smart investment decisions or building a savings plan; it’s about safeguarding the sensitive information that powers your financial life.

With the rise of digital platforms, cyber threats are more prevalent than ever, making it crucial to take proactive steps to protect your financial data. Whether you’re already working with a financial advisor or just starting to manage your own finances, here are some essential tips to help you keep your financial information secure.

1. Use Strong, Unique Passwords

In today’s digital age, passwords are the first line of defense against unauthorized access to your accounts. A weak or recycled password can easily be guessed or cracked by cybercriminals. To enhance your security:

  • Create complex passwords: Use a combination of letters (uppercase and lowercase), numbers, and special characters. Avoid using easily guessable information, like birthdays or names of pets. Using short phrases is a sound strategy as well.
  • Use a password manager: If you have trouble remembering complex passwords for each account, a password manager can store and generate strong, unique passwords for you.
  • Enable multi-factor authentication (MFA): Many financial platforms offer MFA, which requires an additional step (such as a code sent to your phone) in addition to your password. This provides an extra layer of security.

2. Regularly Monitor Your Accounts

Keeping an eye on your bank accounts, investment portfolios, and credit reports is vital for early detection of any suspicious activity. Here’s what you should do:

  • Set up account alerts: Many financial institutions offer alerts via email or text when certain transactions occur, such as withdrawals, deposits, or large purchases. This helps you monitor and identify unauthorized activity. This is especially important for business owners due to less automatic protection than consumers at financial institutions. Consumers have 60 days to report unauthorized transactions whereas businesses accounts should report within 2 days.
  • Review your statements: Always review your monthly bank and credit card statements. Ensure that all charges are legitimate and report any discrepancies immediately.
  • Check your credit report regularly: By law, you’re entitled to one free credit report per year from each of the three major credit bureaus—Equifax, Experian, and TransUnion. Reviewing your credit report can help you spot signs of identity theft early.

3. Beware of Phishing Scams

Cybercriminals often use phishing tactics to steal sensitive information like passwords and account numbers. These scams can come in the form of emails, phone calls, or text messages that appear to be from legitimate financial institutions or even your financial advisor.

  • Don’t click on suspicious links: If you receive an unsolicited email or message asking you to click a link or download an attachment, verify the sender’s identity first. Legitimate institutions will never ask you for sensitive information through these methods.
  • Check for red flags: Phishing emails may contain poor grammar, odd phrasing, or suspicious-looking URLs. If something seems off, don’t engage.
  • Always verify: If you’re ever uncertain about a message, call your financial institution or advisor directly using the contact information from their official website (not from the message itself).

4. Be Careful About Sharing Personal Information

While sharing financial details with a trusted advisor is essential for effective planning, it’s equally important to be mindful of how and with whom you share your information:

  • Limit sharing over unsecured platforms: Avoid sending sensitive information through email or text, which can be intercepted. Use encrypted communication channels whenever possible, or opt for secure portals provided by your financial institution or advisor.
  • Shred documents: Don’t just toss financial paperwork into the trash, shred documents that contain your personal or financial information, such as bank statements, tax returns, and credit card offers.
  • Be cautious on social media: Many people unknowingly share details about their financial life, like vacation plans, recent purchases, or even new job updates, which can be used by criminals to craft more convincing scams. Adjust your privacy settings and think before posting personal details online.
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5. Keep Software and Devices Updated

Outdated software can be a gateway for cyber-attacks. Ensuring your devices are updated with the latest security patches is a simple but essential step in protecting your data:

  • Enable automatic updates: Make sure that your operating systems, apps, and security software are set to update automatically. This ensures that any new vulnerabilities are patched as soon as they are discovered.
  • Install antivirus software: A reputable antivirus program can help detect and block malicious software designed to steal your information. Keep it up-to-date to ensure it remains effective.

6. Secure Your Wi-Fi Network

A weak or unsecured Wi-Fi network can make it easier for hackers to gain access to your financial accounts and personal information. Take steps to secure your home network:

  • Change default passwords: Most routers come with a default password, which is easy for cybercriminals to guess. Change it to something unique and strong.
  • Don’t log into financial data on an unsecure network: Only use trusted, private wifi when logging into sites that have your personal data. Hotels, airports and coffee shops are all popular examples of places not to log into your bank when connected.
  • Consider a VPN: A Virtual Private Network (VPN) can help encrypt your internet connection, making it harder for anyone to intercept your data while you’re browsing or conducting financial transactions online.

7. Work with a Trusted Financial Advisor

A trusted financial advisor plays a critical role in protecting your financial information. Choose someone who understands the importance of security and adheres to best practices when it comes to managing your data.

  • Ensure they use secure systems: Your advisor should use encrypted communication, secure portals for document sharing, and other security measures to protect your sensitive information.
  • Inquire about their privacy policies: A reliable advisor will have clear policies in place about how they protect your data and how they will communicate with you about any security concerns.
  • Security Questions and trusted contacts: Your advisor should have you set up security questions that only you can answer so if they need to confirm it’s really you asking for money, they can use those to confirm your identity. We will also set up a trusted contact to reach out to if we have any concerns or communication issues under certain circumstances.
  • If your data is compromised: working with an advisor will allow them to place restrictions on your account so only they can move money and prevent any client requests from your login. This adds a level of protection against data breaches or scammers.

Conclusion: A Proactive Approach to Security

In an increasingly digital world, securing your financial information is more critical than ever. By implementing strong passwords, monitoring your accounts, staying vigilant against phishing scams, and working with a trusted advisor, you can significantly reduce your risk of falling victim to cyber threats. Taking proactive steps now will help protect your financial future for years to come.

Remember, your financial information is valuable, and keeping it secure is an ongoing effort. If you have any questions or need advice on how to improve your financial security, don’t hesitate to reach out. Together, we can ensure your financial journey is safe and successful.

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At Copper Leaf Financial we work with you to develop a customized wealth management plan that integrates all aspects of your financial life, helping to ensure financial security and peace of mind for yourself and your loved ones. Contact us today for additional information and to get started.

Disclaimer: The information provided in this blog post is for general informational purposes only and should not be construed as financial or legal advice. Please consult with a qualified professional for advice tailored to your individual situation.

By Breanna Sykes, CFP®, Senior Wealth Advisor, Copper Leaf Financial, LLC