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Personal Finance

How to Make Identity Theft Protection a Money Habit

March 2nd, 2016 | 2 min. read

By Jacob Schroeder

Today most of our financial lives, from banking to shopping, take place in cyber space, which means protecting your identity is a crucial aspect of good money management.

As life has become increasingly digitized, so has crime. Identity theft has become the fastest-growing crime in the United States, costing Americans nearly twice as much as property crimes.

Unfortunately, those nearing or in retirement are valuable targets. A MetLife study found that financial abuse is estimated to cost people older than age 60 nearly $3 billion a year.

Here are some of the basics steps for practicing safe money habits in a digital world.

  • Create secure passwords for your online accounts. The most commonly used password is 123456. Cybersecurity experts recommend creating passwords of 8 or more characters. Strong password combinations should include capital and lowercase letters, numbers and symbols.
  • Be cautious when meeting strangers. As in the physical world, don’t trust every new person you meet online. This is especially important when using online dating sites. The FBI reported that individuals lost more than $82 million to fraud through online dating in just the last six months of 2014 alone. Cyber criminals like to target older individuals on dating sites because they are often retired and living alone.
  • Watch out for criminals who’ve gone phishing. Phishing is the attempt to trick you into providing personal information with phony emails, texts and social media messages. They typically offer you something that seems too good to be true. Even if a message appears to come from a legitimate source, such as a Facebook friend, the sender could be the victim of hackers. In fact, 12% of all fraud reports are tied to social media, according to the FBI Internet Crime Complaint Center.
  • Access personal and financial information only on secure networks. Public Wi-Fi networks, like those in coffee shops and hotels, can be easy targets for hackers to access. Therefore, when using those networks, avoid actions that require you to use sensitive information, such as logging into your bank account.
  • Check your financial accounts regularly for suspicious activity. Even though many financial institutions have implemented fraud protection measures, attackers can still go undiscovered. On average, it takes 229 days (eight months) before a company realizes that it has been hacked. If you notice anything strange with your accounts, contact the appropriate financial institution immediately.
  • Secure your phone. Nowadays, a phone is as much a computer as anything else. To some of us, it’s even like an extension of our own body. And, it should be protected as such. If you frequently access personal information through a mobile device, download security software, which isn’t often provided by wireless carriers. Also, physically secure your phone at all times, or make sure it has a kill switch. A Trend Micro study found that lost or stolen computers, mobile phones, USB drives and other electronic devices is how most criminals steal data.

These are just basic identity theft protection steps that can help you avoid financial fraud. To learn how to better protect your identity and your money online, we recommend watching our recent cybersecurity webinar presented by former FBI agent Jeff Lanza.