Safeguarding your financial information has never been more essential. Reports show there was a 20% increase year-on-year in data breaches between 2022 and 2023, and there were twice the number of people affected in 2023 compared to 2022. Our data is everywhere online, and it has never been less secure. And lots of that data, for investors, relates to finances and financial information on stock exchanges. In 2023, there were $10 billion worth of financial related scams in 2023, up $1 billion from 2022. So, with all those statistics and risks, we’ve created an article with four of our top cyber security practices every investor should practice.
Removing Your Data from the Internet
Your digital presence is more accessible as public records – it’s essential to take proactive steps to reduce or remove your online data footprint. Without even realizing it, years of data could have built up about you. Different addresses, emails, phone numbers, bank account details, eWallets – you name it, it’s probably online.
You can begin by requesting data removal from data collection sites and ensure your financial data isn’t stored unnecessarily on platforms or services. Regularly auditing your online presence to ensure that sensitive financial details or personally identifiable information are not exposed can significantly decrease the risk of cyber threats.
Use Strong, Unique Passwords for Each Account
It may sound like a broken record, but the importance of strong, unique passwords cannot be overstated. And how strong would you say your password is? And don’t tell us you use the same password for every login.
For investors, securing financial accounts with strong passwords is the first defence against unauthorized access. Select passwords combining letters, numbers, and symbols, and avoid using easily guessable information like birthdays or anniversaries. Consider using a password manager to keep track of your passwords.
Password managers store your passwords securely and generate strong passwords for you. It reduces the hassle of having to create and remember each one.
Enable Two-Factor Authentication
Two-factor authentication (2FA) gives you more security to your accounts by requiring a second identification beyond just your password. That could be a text message with a code sent to your phone, a biometric factor like your fingerprint, or a prompt from a dedicated authentication app.
Activating 2FA can significantly decrease the risk of your investment accounts being accessed. It’s a simple step that everyone should do – the only issue that ever arises is if you change your mobile number and can’t have a code sent to your phone. Most 2FAs will have a backup option for you.
Use Secure and Private Connections
Always ensure you’re using a secure and private connection. Avoid using public Wi-Fi networks for financial transactions, as these can be hotspots for cybercriminals to intercept data. Even The Cloud Wi-Fi and storage system isn’t safe – research showed 80% of cyberattacks in 2023 were through cloud-based products.
Instead, use a virtual private network (VPN) that encrypts your internet connection.
Implementing robust cybersecurity practices is essential for investors. The potential loss and implications for investors are massive – you wouldn’t want to finish the day on a trading high to wake up to a hacked account, would you?
