As the world shifts into a digital-driven environment, it is also inevitable that more and more consumers rely heavily on internet banking, mobile wallets and online financial platforms for their everyday transactions. Despite its countless advantages and the convenience it brings, the digital age also comes with increased risks of cyber threats.
Cybercriminals are developing increasingly sophisticated methods to steal personal information and financial data. And anyone can be a victim.
The good thing is there are ways to prevent yourselves from falling prey. The first step is to understand these threats, so you may be able to take the necessary steps to safeguard your financial information in order to secure your sensitive financial data.
The Most Common Cybersecurity Threats to Personal Finance
As the digital age progresses, newer scams and cybersecurity threats have reared its ugly head on the surface. However, there are old tactics being used to this day. And surprisingly enough, despite press releases and even financial institutions warning consumers against these, there are still those that fall victim.
Phishing Scams
The most common of all cybersecurity scams; Phishing scams. This tactic involves tricking a person into revealing personal details or urging someone to click malicious links. Scammers that are behind this would often impersonate trusted institutions such as banks, government agencies, or even your own family and friends. Phishing scams can come through as emails, SMS messages, social media posts, or phone calls.
Malware and Spyware
While malware is a malicious software that can infect your devices, spyware, on the other hand, is a type of malware that can steal your personal information, including login credentials for financial accounts.
These can be downloaded unknowingly through suspicious websites or email attachments. Some malware, like keyloggers, can even track your keystrokes to capture passwords. Never click or download on files sent to you by unknown sources. But the best rule of thumb you can follow is to always double check by communicating with the sender – if you are able to – to ask about his or her email. Most especially if the email sounds off-putting, since there is a possibility that his or her email was hacked.
Unsecured Public Wi-Fi
Excited whenever you see a notification on your phone that there is a Wi-Fi hotspot you can use? Yes, public Wi-Fi hotspots are convenient, but did you know that they can be risky for financial transactions? These unsecured Wi-Fi networks don’t encrypt your data, this means that anyone could potentially intercept your login details or financial information if you access online accounts.
Ransomware
Ransomware is a type of malware that often targets big organizations and corporations. As the name suggests, the scammers will encrypt important files, making them inaccessible. Ransomware attackers then demand a ransom payment in exchange for decrypting your files.
Social Engineering
Cybercriminals may use psychological manipulation to trick you into giving up your financial information or clicking on malicious links. They may create a sense of urgency or impersonate a trusted source.
Data Breaches
Data breaches occur when sensitive information is leaked or stolen from an organisation’s database. Criminals can use this stolen data to commit identity theft or financial fraud. While you can’t necessarily prevent a data breach, you can be mindful of where you share your personal information.
Strategies for Securing Your Financial Information
Following these key steps to significantly improve the security of your financial information online.
Strong Passwords and Multi-Factor Authentication (MFA)
Use strong and unique passwords for each financial account to avoid getting hacked. Also, avoid common phrases or easily guessable details. Many Australian financial institutions offer Multi-Factor Authentication (MFA) which adds an extra layer of security by requiring a second verification code during login. Always enable MFA whenever it’s available.
Secure Browsing Practices
Make sure any financial website you visit uses a secure HTTPS connection. Look for the “https://” in the address bar and a padlock symbol for confirmation. Never click on suspicious links or download files from unknown sources, especially in emails or on social media. These tactics are commonly used by scammers to steal personal information.
Software Security
Software vulnerabilities are weaknesses in programs that cybercriminals can exploit to gain access to your device or data. These vulnerabilities are constantly being discovered, and hackers develop tools to target them. Fortunately, software companies release updates (patches) to fix these vulnerabilities. Keeping your software up to date is essential to ensure you have the latest protections.
Monitor Bank Accounts and Credit Card Statements
Regularly review your bank statements and credit card transactions. Look for any unfamiliar charges or activity. If you spot something suspicious, immediately report it to your financial institution. They can help investigate and prevent further issues.
Additional Tips for Enhanced Security
While the previous steps form a strong foundation for online security, here are some additional tips to further protect your financial information:
- Only transact with legitimate institutions: Make sure to do your due diligence in doing a background check on every vendor or institution you transact with online. When purchasing items, don’t just buy from sketchy sites. If you want to acquire an online loan, make sure you are applying from a reputable online lender.
- Be mindful of what information you share online: Avoid sharing personal financial information like account details or social security numbers on social media or unsecured websites.
- Consider using a financial management app: These apps can encrypt your financial data and provide additional security features like transaction verification.
- Stay informed: Stay updated on the latest financial scams and security threats. This allows you to be more prepared and less susceptible to social engineering attacks.
Cybersecurity is essential for protecting your finances in today’s digital world. With more and more financial transactions happening online, cybercriminals are developing new tricks to steal your hard-earned money. By following best practices like strong passwords and being mindful of what information you share online, you can significantly reduce your risk.
For Australians specifically, the Australian Cyber Security Centre (ACSC) is a great resource to learn more about online safety and how to protect yourself from cyber threats. They offer a variety of resources and guides tailored to everyday Australians, so you can find information that is clear and easy to understand.