8 Steps to Better Protect Your Financial Information

National Public Data recently confirmed a massive data breach that compromised the Social Security numbers, names, addresses, email addresses, and phone numbers of 2.9 billion individuals. As a healthcare professional, you understand the critical importance of protecting sensitive information. This breach highlights the urgent need for proactive measures to secure your financial data.

The Growing Threat of Financial Fraud

In 2023, U.S. adults lost a record $10 billion to fraudsters, according to the Federal Trade Commission (FTC). Scams related to investments, business decisions, romance, and government services contributed to this alarming figure. Approximately 690,000 people fell victim to these schemes, with a median loss of $500. Fraudsters often target smaller amounts to avoid detection, and law enforcement faces challenges in addressing every instance of fraud, especially those involving smaller sums.

How to Check if Your Information Was Compromised

Cybersecurity firm Pentester developed a tool to help you determine if your data was involved in the recent breach. This tool, available at npd.pentester.com, allows you to check for compromised names, addresses, address histories, and Social Security numbers. 

In addition to this tool, we outline eight actionable steps to help you stay ahead of evolving threats and better protect your hard-earned wealth.

8 Steps to Protect Your Financial Information

1. Stay Educated on Fraud Tactics and Scams

   • Follow reputable news sources that report on fraud and cybersecurity issues. These sources offer valuable insights into emerging scams and fraud trends.

   • Subscribe to newsletters or blogs from organizations specializing in fraud prevention, such as government agencies, financial institutions, or cybersecurity companies. These resources provide updates, tips, and best practices for recognizing fraud.

   • Before taking any action, thoroughly research requests or offers to evaluate their legitimacy. Always be skeptical of unsolicited communications and requests for personal information.

   
   

2. Secure Your Financial Documents and Information

   • Keep checkbooks, credit cards, bank statements, and IDs in a secure place. These items contain sensitive information that could lead to financial harm if obtained by unauthorized individuals.

   • Be mindful of your surroundings when handling sensitive information in public. Shield your account numbers, PINs, or passwords when making transactions or accessing accounts in crowded or unfamiliar environments.

   • Dispose of personal information securely using a shredder. Keep your account numbers, credit card numbers, and ID information confidential to reduce the risk of unauthorized access.

   
   

3. Regularly Review Your Financial Information

   • Set up transaction alerts or notifications from your financial institutions to receive real-time updates on account activity.

   • Scrutinize each transaction to ensure you recognize and have authorized them.

   • Monitor your credit reports by obtaining free annual reports from credit bureaus or using credit monitoring services to stay informed about unusual activities.

   • Use online banking on both your desktop and mobile devices to frequently check your accounts.

   
   

4. Be Cautious of Unsolicited Offers and Requests for Personal Information

   • Trust your instincts. If something doesn’t feel right about a phone call, email, or advertisement, proceed with caution. Ensure you know who you are sending money to and that the transaction and its purpose make sense.

   
   

5. Keep Your Computer Secure

   • Regularly update your operating system and security software to protect against malware and other online threats. Enable automatic updates or check for updates manually.

   • Avoid using public Wi-Fi networks for sensitive activities like online banking. Consider using a virtual private network (VPN) for added security when accessing the internet.

   
   

6. Use Strong Passwords and Multi-Factor Authentication

   • Create long, complex passwords using a combination of numbers, symbols, and letters. Use unique passwords for each online account and change them regularly.

   • Use two-factor authentication, which requires you to confirm your identity through a text, email, or push notification before logging into your account.

   
   

7. Beware of Phone Scams

   • Avoid sharing banking or personal information over the phone, and do not succumb to pressure to take immediate action.

   • Be wary of callers asking, "Can you hear me?" as they may record your response to authorize unwanted charges.

   • Remember that law enforcement agencies and the IRS will never call you to request personal information.

   
   

8. Freeze Your Credit

   • Given that financial institutions rely on Social Security numbers for loan applications, credit cards, and investments, having this information exposed poses a significant risk. 

   • Freezing your credit report is free and can be done by contacting all three major credit reporting agencies: Equifax, Experian, and TransUnion. You can submit your request online, by phone, or by mail. The agencies are required to freeze your credit report within one day of your request if submitted online or by phone, and within three business days if submitted by mail. You can also lift the freeze within an hour if requested online or by phone.

By following these steps, you can better protect yourself against potential threats. Staying informed and vigilant is key to safeguarding your financial and personal information.

At Earned, we are committed to providing you with the peace of mind and support you need to achieve your financial goals. We understand the importance of protecting your assets, which is why they are custodied at Fidelity, one of the nation’s largest institutional custodians. To learn more about how we can help you build wealth securely, set up a time to chat with our team here.

The above information is for educational purposes only. Individuals should seek the counsel of a properly licensed professional prior to taking any action. Earned Wealth is an investment adviser and does not provide accounting advice or services.