How secure is your financial information? Let’s do a little test: Do you currently have a budgeting app installed on your phone? Statistically speaking, there’s a good chance you do—75% of smartphone owners have tried at least one. It seems like a smart move to take control of your finances, right? Unfortunately, what many people don’t realize is that apps like these could be exposing your sensitive financial data.
That’s just one example. There are other common habits and oversights that could leave your financial data wide open to cybercriminals. Mistakes like these don’t just jeopardize your bank account—they can lead to devastating consequences like identity theft, mounting debt, and even shattered retirement plans. I’ll walk you through the 5 biggest mistakes that could be putting your financial future at risk—and, more importantly, how to avoid them.
GET SECURITY ALERTS, EXPERT TIPS – SIGN UP FOR KURT’S NEWSLETTER – THE CYBERGUY REPORT HERE
The 5 biggest mistakes you should avoid
Navigating the digital world can be tricky, especially when avoiding common pitfalls that compromise your privacy and security. Here are the five biggest mistakes you should avoid:
1) Neglecting security measures
This is one of the biggest pitfalls many of us fall into. There are so many things we have to do these days to keep our online security up to par, it’s easy to grow complacent, essentially leaving the door wide open for cybercriminals to walk through. Here are the basics you should never forget to follow:
Enable two-factor authentication (2FA) everywhere you can, especially online accounts that hold your financial information.
Keep your software updated. Hackers exploit known weaknesses in old versions of apps, operating systems, and even browsers. So, be sure to regularly update your software on all your devices.
Avoid using public, unsecured networks, especially when accessing sensitive accounts like online banking or even e-commerce. If you have no other choice, use a trusted VPN to encrypt your online activity, including financial information.
Using a VPN (Virtual Private Network) service can enhance your privacy by encrypting your internet traffic, making it harder for hackers and third parties to intercept your data, especially on public Wi-Fi. A VPN masks your IP address, helping to obscure your location and online activity. While VPNs don’t directly prevent phishing emails, they reduce the exposure of your browsing habits to trackers that may use this data maliciously. With a VPN, you can securely access your email accounts from anywhere, even in areas with restrictive internet policies.
ExpressVPN and Surfshark are both trusted VPN services that prioritize your privacy and security and are available on a wide range of platforms, including Mac, Windows, iOS, Android, and popular browsers.
ExpressVPN: ExpressVPN is known for its speed, reliability, and strong privacy features. It offers ultra-fast servers in 105 countries, supports P2P sharing, and allows up to 8 devices to connect simultaneously. Available on a wide range of devices, it features a simple setup that takes less than 2 minutes. ExpressVPN’s strict no-log policy ensures your data is never stored, and all servers run on RAM, so no user activity is saved. With 24/7 live customer support and a 30-day money-back guarantee, ExpressVPN is a top choice for privacy-conscious users.
CYBERGUY DEALS:
- Save 48% now with CyberGuy’s exclusive offer – you can get now up to 3 months FREE with a 12-month plan, for $6.67/month. Try 30 days risk-free.
- Save 61% now with CyberGuy’s exclusive offer – you can get now up to 4 months FREE with a 24-month plan, for $4.99/month. Try 30 days risk-free.
Surfshark: Another excellent option, Surfshark provides strong security features at an affordable price. Like ExpressVPN, Surfshark operates under a strict no-logs policy and uses advanced encryption to keep your data safe. One standout feature is Surfshark’s ability to support unlimited devices on a single account, making it ideal for families or users with multiple gadgets. Another to top choice for privacy-conscious users.
CYBERGUY DEALS:
- Save 81% now with CyberGuy’s exclusive offer – Get 4 extra months FREE with a 12-month plan. Try 30 days risk-free, for only $2.99 per month.
- Save 87% now with CyberGuy’s exclusive offer – Get 4 extra months FREE with a 24-month plan. Try 30 days risk-free, for only $1.99 per month.
DON’T CLICK THAT LINK! HOW TO SPOT AND PREVENT PHISHING ATTACKS IN YOUR INBOX
2) Reusing passwords
Though technically a security measure, this one’s so bad, it deserves its own spot on the list. A recent survey revealed that more than half of Americans reuse passwords on at least some of their accounts. Make sure you’re not one of them.
When hackers compromise one account, they don’t stop there. They use a technique called credential stuffing, where stolen login details are tested on other platforms. So, if you’ve reused the same password across your bank account, email, and favorite shopping site, one data breach can take them all down in one fell swoop.
If you don’t have a perfect memory, capable of memorizing every password you’ll ever need, I recommend using a trusted password manager. They can generate and store complex, unique passwords for all your accounts, so you don’t have to remember them yourself.
SNEAKY SCAMMERS DRAIN BANK ACCOUNT IN SINISTER PHONE PHISHING SCHEME
3) Using budgeting apps
Budgeting apps might seem like a no-brainer for managing your finances, but they come with risks that most people don’t consider.
Research from Incogni shows that 1 in 4 budgeting apps share financial information with third parties, and 60% share at least some user data. Worse still, many of these apps request excessive permissions—11, on average—including access to sensitive data like your contacts, calendar, and even Bluetooth settings.
Instead of relying on a budgeting app, consider utilizing your bank’s online tools. Many banks offer built-in budgeting and expense-tracking features within their secure online banking platforms. These are typically more privacy-focused than third-party apps. Here are some examples:
Bank of America: Offers interactive charts that break down spending trends, highlight budget categories, and show total monthly spending with customizable categories.
Wells Fargo: Features a package called My Money Map, which includes spending reports, personalized budget creation, goal setting, and visual analysis of spending compared to budget limits.
Capital One: Provides automated budgeting tools through its 360 Checking account, allowing customers to track and categorize expenses automatically. It also features Eno, a virtual assistant for transaction inquiries.
Chase: Offers built-in budgeting tools that seamlessly integrate with your accounts. This includes features like automatic expense categorization, spending insights, and personalized budget tracking. With Chase, you can also set savings goals and monitor your progress directly through their mobile app or online banking platform.
Huntington National Bank: Offers several in-app budgeting tools, including Spend Analysis for expense tracking, Spend Setter for setting category limits, and Look Ahead Calendar for visualizing upcoming payments.
Regions Bank: Provides a suite of budgeting tools called My GreenInsights, accessible via mobile app and desktop, allowing customers to track expenses, set spending targets, and receive suggestions for reducing expenses.
These bank-provided tools offer the advantage of being integrated directly with your accounts, potentially providing more accurate and up-to-date information while maintaining a higher level of privacy compared to third-party apps.
If you decide to stick to a budgeting app, though, make sure to check its privacy section on the App Store or Google Play, where you can see what data it collects and shares. Then, read the app’s privacy policy carefully, as tedious and often deliberately overcomplicated as that can be.
YOUR EMAIL DIDN’T EXPIRE, IT’S JUST ANOTHER SNEAKY SCAM
4) Shopping anywhere online
Online shopping is convenient and tempting—especially during major sales events like Black Friday. But diving headfirst into deals without knowing the retailer could cost you more than you bargained for.
When you shop on unfamiliar websites, you’re sharing sensitive information like your financial data, address, and contact details. If the retailer doesn’t have strong privacy or security measures in place, this data could end up in the hands of cybercriminals—or be sold to data brokers.
Even popular retailers aren’t always safe. For instance, platforms like Temu, which attract millions of shoppers, have faced scrutiny for questionable data practices. Popularity doesn’t guarantee good privacy or security standards. To protect yourself, shop only on websites with a solid reputation for security and privacy. Here’s how you can verify a site before making a purchase:
- Check their privacy policy to understand how they collect, use, and share your data.
- Read consumer reviews to spot red flags, like poor customer service or complaints of data misuse.
- Whenever possible, use a virtual credit card or payment service like PayPal to add an extra layer of protection for your financial information.
5. Allowing data brokers to keep and sell your information
Unless you go completely off the grid digitally—no internet, online accounts, or smartphones—it’s nearly impossible to avoid leaving a digital footprint. Most companies collect and share your personal information, which ends up in the hands of data brokers and people-search websites that aggregate and sell it to even more third parties.
Data brokerage is a $245.8+ billion industry that profits off your personal information at the expense of your privacy and security. Some data brokers have even been caught intentionally selling information to scammers. People-search sites also provide an accessible way for anyone, including fraudsters, to get their hands on your personal information.
To mitigate these risks, it’s crucial to periodically remove your information from these databases. While it’s not a perfect solution, consistent removal can significantly reduce your exposure and safeguard both your financial data and personal safety.
I recommend using a trusted service like Incogni to handle data removal automatically on your behalf. A service like Incogni can help you remove all this personal information from the internet. It has a very clean interface and will scan 195 websites for your information and remove it and keep it removed.
Special Holiday Deal for CyberGuy Readers (65% off – lowest price anywhere): Incogni offers a 30-day money-back guarantee and an exclusive CyberGuy discount available only through the links in this article. Pricing is just $5.24/month for an individual plan (billed annually) or $11.54/month for a family plan (up to 4 people), both providing fully automated data removal services, including recurring removal from over 190 data brokers. I recommend the family plan—it breaks down to only $2.89 per person per month for comprehensive, year-round coverage. This is an outstanding service, and I highly recommend giving it a try to see the benefits for yourself.
Get Incogni for your family (up to 4 people) here
Kurt’s key takeaways
From my experience, it’s easy to overlook these risks in our fast-paced, convenience-driven world. But taking just a few minutes to review your security practices can save you from a world of trouble. Don’t wait until it’s too late to protect yourself and your loved ones. Neglecting basic security like two-factor authentication, reusing passwords, or shopping on untrustworthy websites can leave you exposed. Using finance apps that share your data, like allowing data brokers to profit off your personal information, also increases your risks of experiencing fraud and identity theft. By staying vigilant, you can protect both your finances and your loved ones.
Have you made any of the mistakes on this list, or do you have others you’d add? Let us know in the comments below.
FOR MORE OF MY TIPS, SUBSCRIBE TO MY FREE CYBERGUY REPORT NEWSLETTER HERE
Copyright 2024 CyberGuy.com. All rights reserved. CyberGuy.com articles and content may contain affiliate links that earn a commission when purchases are made.