In today’s rapidly evolving digital landscape, cybersecurity is no longer just a concern for large corporations. With over 600 million cyberattacks occurring daily, every individual and business is at risk. Cybercriminals are adopting sophisticated tools, including artificial intelligence, to execute their attacks, making proactive cybersecurity measures critical for anyone with substantial assets or sensitive data to protect. Here, we explore essential steps to protect personal and financial information from the rising tide of cyber threats.
Steps to Protect Personal & Financial Information from Cyber Threats
- Understand the Cyber Threat Landscape
The sheer volume of cybercrime is staggering. In 2023, phishing attacks surged by 58%, and ransomware incidents increased by nearly 175%. With nation-state collusion becoming a factor, cybercriminals are now more powerful and organized than ever. The cost of cybercrime reached $1 trillion globally, impacting businesses and individuals alike. This shifting landscape underscores the importance of understanding your digital vulnerabilities and taking active measures to protect against potential threats.
- Secure Your Accounts with Strong, Unique Passwords
Passwords remain a foundational element of cybersecurity. However, weak or reused passwords are often exploited by attackers. For optimal protection, use a password manager to generate and store complex, unique passwords for each account. Password managers, like 1Password or Keeper, securely store passwords without relying on big tech companies. When setting up new accounts, avoid using personal information for security questions; instead, use randomized answers stored in your password manager.
- Enable Multi-Factor Authentication (MFA) on Critical Accounts
Multi-factor authentication (MFA) adds a necessary layer of protection by requiring a secondary verification step beyond just a password. MFA is now essential on high-value accounts, such as financial accounts, email, and cloud storage. For added security, avoid using SMS-based MFA, as attackers can intercept text messages. Instead, use authentication apps that generate unique codes, such as Google Authenticator or Duo, to enhance security on vital accounts.
- Back Up Your Data Regularly
Data backups are the best defense against ransomware, which often holds data hostage in exchange for untraceable cryptocurrency payments like Bitcoin. Regularly back up your files to a secure, offline location, and ensure your backups are no more than a day old. Ideally, use encrypted backups to protect sensitive information, and store copies in multiple locations to safeguard against physical and digital threats.
- Protect Personal Identifiable Information (PII)
Protecting personal data, such as your Social Security number, is increasingly challenging but critical. Refrain from sharing sensitive information unless absolutely necessary, and consider freezing your credit with all three major credit bureaus. This measure prevents identity thieves from opening new accounts in your name. Regularly monitor your credit reports for any suspicious activity through the official AnnualCreditReport.com to ensure your information remains secure.
- Be Cautious with Social Media and Online Sharing
Overexposure of personal information on social media can increase vulnerability to cyberattacks. Cybercriminals often gather personal information from social media profiles to answer security questions, impersonate individuals, or execute social engineering attacks. Carefully consider what information you share online, and adjust privacy settings on social platforms to limit visibility to trusted contacts only.
- Consider Cyber Insurance and Identity Protection
For those with substantial assets, cyber insurance can provide a financial safety net in case of a cybersecurity incident. Although identity protection services like LifeLock may alert you to breaches, they do not prevent identity theft. Instead, focus on proactive measures, such as monitoring your accounts and freezing your credit. However, cyber insurance policies can cover costs related to data recovery, legal fees, and other expenses, providing additional security for high-net-worth individuals and business owners.
- Regularly Update Software and Use Reputable Antivirus Tools
Keeping software and systems up to date is essential for mitigating vulnerabilities that cybercriminals often exploit. Enable automatic updates on devices, and install reputable antivirus software to detect and block malicious activity. While free antivirus solutions may offer basic protection, premium services typically provide enhanced features, such as real-time monitoring and phishing protection.
- Prioritize Security for Financial and Business Accounts
Financial accounts—such as banking, investment, and retirement accounts—are high-priority targets for cybercriminals. Ensure multi-factor authentication is enabled and monitor account activity regularly for any unusual behavior. Business owners should extend these precautions to company accounts and consider cybersecurity training for employees, as human error remains a leading cause of data breaches.
- Manage Digital Footprint with Data Minimization
Reduce your online exposure by limiting the amount of personal data shared with websites and services. When signing up for accounts, consider using unique email addresses or aliases to limit tracking. Both Google and Apple offer services that generate unique email addresses for one-time use, helping prevent spam and data breaches. Additionally, routinely audit the apps and services that have access to your data, and delete accounts you no longer use.
- Safeguard Mobile Devices and Protect Cloud Data
Smartphones contain a wealth of personal data, from banking information to passwords. Protect your mobile device with biometric security or strong passcodes, and avoid using public Wi-Fi networks for sensitive activities. Cloud data, while convenient, is also vulnerable; consider regular backups of your cloud-stored files and use end-to-end encryption wherever possible to keep your data secure.
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Disclosures:
The foregoing information has been obtained from sources considered to be reliable, but we do not guarantee that it is accurate or complete, it is not a statement of all available data necessary for making an investment decision.
Any opinions are those of Kowal Investment Group. This material is being provided for informational purposes only and is not a complete description, nor is it a recommendation. There is no guarantee that these statements, opinions or forecasts provided herein will prove to be correct. Investing involves risk and you may incur a profit or a loss regardless of strategy selected. Prior to making an investment decision, please consult with your financial advisor about your individual situation.
Kowal Investment Group, LLC (“Kowal”) is a Registered Investment Advisor (“RIA”). Kowal provides investment advisory and related services for clients in State of Wisconsin and other states. Kowal will maintain all applicable registration and licenses as required by the various states in which Kowal conducts business, as applicable. Kowal renders individualized responses to persons in a particular state only after complying with all regulatory requirements, or pursuant to an applicable state exemption or exclusion.
