An Investor’s Guide to Financial Cybersecurity
Last week I shared with you that I would be starting a series “AN INVESTOR’S GUIDE TO FINANCIAL CYBERSECURITY”. I have had clients affected by cyber identity theft, phone scams, and phishing – we’ll cover them all.
In this series you will learn how to protect yourself and your finances from hackers, scammers, and identity theft.
It’s time to understand…
THE IMPORTANCE OF FINANCIAL CYBERSECURITY
“An ounce of prevention is worth a pound of cure.” ~ Benjamin Franklin
It has become far too common an occurrence to turn on the evening news and hear a story about another scam that’s made its way into our community (like the IRS impersonation calls, mentioned in this article released by the IRS back in April). Or to switch on the radio during your morning commute and learn that some massive corporation has been hacked.
Technology has changed dramatically over the last couple of decades. Most of those changes have been for the better.
Personal computing makes it easier to get more work done. The internet has put a wealth of knowledge at everyone’s fingertips. Thanks to smartphones and other mobile devices, it’s easier than ever to stay connected with friends and family. And because credit and debit cards have largely replaced cash and checks – not to mention the rise of mobile payment apps like Venmo and PayPal – we now have greater access to our money whenever and however we need it.
But these same advancements have also made it easier for hackers, scammers, and fraudsters to steal from people. When it comes to protecting ourselves from theft, we now worry less about a masked burglar stealing the family jewelry. Instead, the greater danger is that someone thousands of miles away will steal something even more important: Our very identity.
As a financial professional, the rise of threats like identity theft, fraud, and malware have added a unique element to my job. In addition to helping people grow their money and plan for their future, I now also must help safeguard their money, protecting their future.
I call it financial cybersecurity – the practice of protecting yourself and your finances from hackers, scammers, and fraudsters. Nowadays, financial security has become as important as financial planning. Why? Because few things in life are as painful as planning for your goals, only to see those plans ripped away because of someone else’s dishonesty. The scariest thing is that most people don’t even know they’re a target until it’s too late. Just take a look at these stats:
IDENTITY THEFT
- In 2018, over 14.4 million consumers fell victim to identity fraud.
- Of these, 3.3 million people were responsible for at least a portion of the liability of the fraud committed against them.
- In 2019, consumers reported losing more than $1.9 billion related to fraud.
CYBERCRIME
- In 2019, an organization fell victim to ransomware every 14 seconds.
- In 2019, the number of sensitive records (i.e. personal information) exposed to cyber- criminals was 164.7 million. In 2018, it was 471.2 million!
- In the first half of 2020 alone, over 164 million people were affected in some way by hackers.
SOURCE: “Facts+Statistics: Identity theft and cybercrime,” Insurance Information Institute
Those are sobering numbers! When you dive into the numbers, it becomes clear that identity theft, online scams, and overall fraud are threats that everyone faces. It doesn’t matter whether you’re young or old, male or female. And due to the ongoing coronavirus pandemic, these threats are only going to get worse. In fact, online scams and data breaches have increased dramatically since the pandemic began. That’s why it’s more important than ever to keep your finances “scam-safe” and “cyber-secure.”
The good news is that while the threat is real, the solution is simple.
When pondering all the various types of scams, fraud, and malware out there, it’s easy to feel overwhelmed. But here’s the good news: Achieving financial security doesn’t have to be hard. In fact, it’s relatively simple!
With a little proactivity, you can strengthen your financial defenses to the point that most criminals will see you as simply “not worth the effort”. That’s because, just as regular burglars prefer houses that are left unlocked, scammers and cybercriminals look for easy targets who’ve taken little-to-no steps to protect themselves.
To help you and your family become more financially cybersecure, in the weeks to come I will share some simple steps you can take to protect your data, your money, and your identity. You’ll also learn a little more about how to recognize the different types of fraud, scams, and cybercrimes that investors need to look out for.
Understand, these emails are not meant to be an exhaustive compendium of every possible threat that investors and retirees face. Instead, it’s a guide to making yourself just a little more secure. Think of it as the virtual equivalent to simply locking your doors when you leave the house. These steps are easy, basic, and oftentimes, no- brainers – but they can go a long way to protecting yourself and your finances.
As Benjamin Franklin once said, “An ounce of prevention is worth a pound of cure.” By taking steps today to protect your finances and your identity, you’ll be saving yourself months of grief and frustration in the future.
Because it’s not just your money you’ll be protecting.
It’s your dream financial future.
