How secure is your financial information? Let’s do a little test: Do you currently have a budgeting app installed on your phone? Statistically speaking, there is a good chance that this is the case.
Seventy-five percent of smartphone owners I’ve tried at least one. It seems like a smart decision to take control of your finances, right? Unfortunately, what many people don’t realize is that apps like these could be exposing your sensitive financial data.
That’s just one example. There are other common habits and oversights that could leave your financial data exposed to cybercriminals.
Mistakes like these not only put your bank account at risk, but can also have devastating consequences like identity theft, mounting debt, and even shattered retirement plans. I’ll explain the five biggest mistakes that could put your financial future at risk and, more importantly, how to avoid them.
A couple working on their budget. (Kurt “CyberGuy” Knutsson)
The 5 biggest mistakes you should avoid
Navigating the digital world can be complicated, especially when avoiding common mistakes that compromise your privacy and security. These are the five biggest mistakes you should avoid:
1. Neglecting security measures
This is one of the biggest pitfalls that many of us fall into. There are so many things we have to do today to keep our online security up to par. It’s easy to become complacent and basically leave the door wide open for cybercriminals to enter. These are the basics that you should never forget to follow:
Enable two-factor authentication (2FA) everywhere you can, especially online accounts that contain your financial information.
Keep your software up to date. Hackers exploit known weaknesses in old versions of applications, operating systems, and even browsers. So make sure periodically update your software on all your devices.
Avoid using unsecured public networksespecially when accessing sensitive accounts such as online banking or even e-commerce. If you have no other option, use a Trusted VPN to encrypt your online activity, including financial information. For the best VPN software, check out my expert review of the best VPNs for private web browsing on your Windows, Mac, Android, and iOS devices.
A woman scrolling through her phone (Kurt “CyberGuy” Knutsson)
DON’T CLICK ON THAT LINK! HOW TO DETECT AND PREVENT PHISHING ATTACKS IN YOUR INBOX
2. Reuse passwords
Although technically a security measure, this one is so bad that it deserves its own place on the list. TO recent survey revealed that more than half of Americans reuse passwords on at least some of their accounts. Make sure you’re not one of them.
When hackers compromise an account, they don’t stop there. They use a technique called credential stuffing, whereby stolen login data is tested on other platforms. So if you’ve reused the same password for your bank account, email, and favorite shopping site, a data breach can wipe them all out in one fell swoop.
If you do not have a perfect memory, capable of memorizing all the passwords you may need, I recommend using a trusted one. password manager. They can generate and store unique, complex passwords for all your accounts so you don’t have to remember them yourself.
A woman working on her budget. (Kurt “CyberGuy” Knutsson)
DIFFERENT SCAMMERS DRAIN BANK ACCOUNT IN SINISTER PHONE PHISHING SCHEME
3. Use budgeting apps
Budgeting apps can be a convenient tool for managing your finances, but they also carry potential risks that many users overlook. These apps often share user data with third parties and may request broad permissions, including access to sensitive personal information. This can raise concerns about data privacy and security, especially if the app lacks strong safeguards. Before using a budgeting app, it is essential to carefully review its permissions and data sharing policies to protect your personal and financial information.
Instead of relying on a budgeting app, consider using your bank’s online tools. Many banks offer built-in budgeting and expense tracking features within their secure online banking platforms. They tend to be more privacy-focused than third-party apps. Below are some examples:
Bank of America: Offers interactive graphics that break down spending trends, highlight budget categories, and show total monthly spending with customizable categories.
WHAT IS ARTIFICIAL INTELLIGENCE (AI)?
Wells Fargo: Includes a package called my money mapincluding expense reporting, custom budget creation, goal setting, and visual analysis of spending against budget limits.
Capital one: Provides automated budget tools through their 360 checking account, allowing customers to track and categorize expenses automatically. It also has Eno, a virtual assistant for transaction consultations.
Chase: Integrated offers budget tools that integrate seamlessly with your accounts. This includes features like automatic expense categorization, expense insights, and personalized budget tracking. With Chase, you can also set savings goals and monitor your progress directly through their mobile app or online banking platform.
Huntington National Bank: It offers several budgeting tools in the app, including expense analysis for expense tracking. Expense regulator to set category limits and Look Ahead Calendar to view upcoming payments.
Bank of Regions: Provides a set of budgeting tools called My ecological ideasaccessible through a mobile and desktop app, allowing customers to track spending, set spending goals, and receive tips for reducing expenses.
These bank-provided tools offer the advantage of integrating directly with your accounts, potentially providing more accurate and up-to-date information while maintaining a higher level of privacy compared to third-party apps.
However, if you decide to stick with a budgeting app, be sure to check its privacy section in the App Store or Google Play, where you can see what data it collects and shares. Then read the app’s privacy policy carefully, however tedious and often deliberately overly complicated it may be.
A man using his phone and laptop to work on his budget (Kurt “CyberGuy” Knutsson)
YOUR EMAIL HAS NOT EXPIRED, IT’S JUST ANOTHER DIFFERENT SCAM
4. Buy anywhere online
Online shopping is convenient and tempting, especially during major sales events like Black Friday. But diving headfirst into deals without knowing the retailer could cost you more than you expected.
When you shop on unknown websites, you share sensitive information like your financial details, address and contact details. If the retailer does not have strong privacy or security measures in place, this data could end up in the hands of cybercriminals or be sold to data brokers.
Even popular retailers aren’t always safe. For example, platforms like temuthat attract millions of shoppers, have faced scrutiny for questionable data practices. Popularity does not guarantee good privacy or security standards. To protect yourself, only buy from websites with a strong reputation for security and privacy. Here’s how you can check a site before making a purchase:
- check your Privacy Policy to understand how they collect, use and share your data.
- Read consumer opinions to detect red flags, such as poor customer service or complaints about data misuse.
- Whenever possible, use a virtual credit card or payment service like PayPal to add an extra layer of protection for your financial information.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
A man using his phone to make estimates (Kurt “CyberGuy” Knutsson)
5. Allow data brokers to keep and sell your information
Unless you completely disconnect from the digital network (no internet, online accounts, or smartphones), it’s nearly impossible to avoid leaving a digital footprint. Most companies collect and share your personal information, which ends up in the hands of data brokers and people search websites that aggregate and sell it to even more third parties.
Data brokerage is a $245.8 billion industry. that profits from your personal information at the expense of your privacy and security. Some data brokers have even been caught intentionally selling information to scammers. People search sites also provide an accessible way for anyone, including scammers, to obtain your personal information.
To mitigate these risks, it is essential to periodically remove your information from these databases. While not a perfect solution, consistent deletion can significantly reduce your exposure and safeguard both your financial data and personal security. Check out my top picks for data removal services here.
Kurt’s Key Takeaways
In my experience, it is easy to overlook these risks in our fast-paced, convenience-driven world. But taking just a few minutes to review your security practices can save you from a lot of trouble. Don’t wait until it’s too late to protect yourself and your loved ones. Neglecting basic security like two-factor authentication, reusing passwords, or purchasing from untrustworthy websites can leave you exposed. Using financial applications that share your data, such as allowing data brokers to profit from your personal information, also increases the risk of fraud and identity theft. By remaining vigilant, you can protect both your finances and your loved ones.
CLICK HERE TO GET THE FOX NEWS APP
Have you made any of the mistakes on this list or do you have others you would add? Let us know by writing to us at Cyberguy.com/Contact
For more tech tips and security alerts, sign up for my free CyberGuy Report newsletter by heading to Cyberguy.com/Newsletter
Ask Kurt a question or tell us what stories you’d like us to cover.
Follow Kurt on his social channels.
Answers to CyberGuy’s most frequently asked questions:
New from Kurt:
Copyright 2024 CyberGuy.com. All rights reserved.
