The digital age has made managing money more convenient, but also more vulnerable. From online banking to mobile apps, much of our financial life now lives online, making it more important than ever to protect your personal data. With cybercrime becoming more advanced, everyone—from retirees checking investment accounts on their tablets to busy professionals managing finances on the go—is a potential target.
Even older generations, once considered less digitally engaged, are more tech-savvy than ever. But this increased adoption comes with growing risks. In 2023, elder fraud complaints to the FBI’s Internet Crime Complaint Center rose by 14%, with total reported losses exceeding $3.4 billion. The average victim lost nearly $34,000. Common scams include fake tech support calls, investment fraud, and data breaches. While the FBI is cracking down on these crimes, prevention starts with awareness. [1]
Older adults are not the only individuals at risk. Cybercriminals now rely on tactics like social engineering to exploit human behavior rather than just computer systems. Younger generations, including Gen X and Millennials, are not immune. In fact, new research shows that even Gen Z employees feel less confident identifying phishing attempts and are more likely to fall for suspicious links at work, putting both personal and company data at risk. [2]
Whatever your age or stage of life, understanding how to protect your financial information is an important part of managing your overall financial health.
Why Protecting Financial Data Matters
Keeping your financial data secure plays a key role in protecting your broader financial well-being. Cybercriminals increasingly target individuals and families who’ve worked hard to build wealth. While high-net-worth families and family offices are clear targets, anyone with meaningful assets or consistent income is at risk. If you’re saving for retirement, managing multiple accounts, or simply building wealth over time, you have something worth stealing. [3]
The consequences of poor data protection can be serious: identity theft, unauthorized access to bank or investment accounts, fraudulent credit activity, and lasting financial damage. Often, these breaches aren’t the result of advanced hacking; they happen because of everyday vulnerabilities like weak passwords, insecure Wi-Fi networks, or clicking on a suspicious email link. Criminals use a variety of tactics: phishing (email-based scams), smishing (text-based), pretexting (impersonating someone trustworthy), and baiting (enticing users to download malware). [2]
This isn’t just a concern for the ultra-wealthy. While high-net-worth families are obvious targets, anyone managing digital finances should take precautions. In fact, nearly 80% of North American family offices say cyber risks are increasing, yet fewer than one-third have robust protections in place. [3]
Simple, Effective Ways to Protect Your Financial Data
Use Strong, Unique Passwords
Passwords may seem basic, but they’re often your first and best line of defense. Using the same password across multiple sites creates a serious vulnerability—if one account is compromised, others may quickly follow. [4]
Instead, use a different password for each login, and make them long and complex—mix uppercase and lowercase letters with numbers and special characters. Avoid obvious phrases, pet names, or anything that could be guessed based on information someone could find online.
A password manager can help generate unique, strong passwords for each site and also store them securely so you don’t have to remember them all yourself.
Enable Multi-Factor Authentication (MFA)
Prove that it’s you, more than once! That’s the idea behind multi-factor authentication, or MFA. This security measure requires two or more methods of verifying your identity before granting access to your account. It’s a layered defense strategy that adds serious protection beyond the basic username and password combination. [5]
Why is this so effective? Because even if a cybercriminal manages to steal one credential, such as your password, they’ll hit a wall when asked for the second. Whether that’s a one-time code sent to your phone, a prompt from an authentication app, or even biometric data like a fingerprint or face scan, the second factor is often enough to stop unauthorized access in its tracks. That’s why users who enable MFA are far less likely to become victims of account takeovers or identity theft.
Most major platforms—banks, email providers, social media sites—offer MFA in some form. It may be labeled “Two-Factor Authentication” or “Two-Step Verification.” Enable it wherever it’s available, especially on accounts tied to your finances. If it’s not offered, consider contacting the provider to advocate for stronger protections.
Keep Devices and Networks Secure
Outdated software is one of the easiest ways for cybercriminals to sneak in. That’s why keeping your operating system, browser, mobile apps, and security software updated is essential, preferably by enabling automatic updates. These updates often contain critical patches that fix known vulnerabilities.
Home Wi-Fi is another common target. Secure your network by: [6]
Keep your operating system, web browser, apps, and antivirus software up to date (preferably with automatic updates turned on).
Secure your home Wi-Fi by enabling WPA3 or WPA2 encryption, changing the default login credentials, and renaming the network.
Disable risky features like WPS, UPnP, and remote management in your router settings.
Set up a guest network for visitors to avoid sharing access to your main network.
Activate your router’s built-in firewall for an added layer of defense.
Also, be cautious when using public Wi-Fi, especially for financial transactions. If you need to connect, use a virtual private network (VPN) for added security. Keeping your devices and network secure is one of the most effective ways to guard your financial data from prying eyes.
Be Cautious with Emails and Links
Email remains a top entry point for cyberattacks. Phishing emails are designed to look legitimate, but they aim to trick you into revealing private information or downloading malicious software.
Watch out for unexpected messages asking for urgent action, attachments from unfamiliar senders, or requests for sensitive information. If something feels off—even if it looks like it came from your bank—don’t click. Instead, contact the company directly through a verified website or phone number.
The same rules apply to text messages. “Smishing” scams are on the rise, and a quick tap on the wrong link can lead to big consequences. Take a moment to pause and verify before clicking.
Monitor Financial Accounts Regularly
No matter how secure your systems are, fraud can still happen. That’s why regular monitoring is one of your strongest defenses. [7]
Set up account alerts with your bank, credit card issuer, and other financial institutions. Many offer real-time or daily notifications for transactions, large withdrawals or deposits, low balances, or other unusual activity. Review your monthly account statements line by line for anything you didn’t authorize or recognize.
Don’t forget your credit reports. Unusual inquiries or unfamiliar accounts can signal identity theft in its early stages. Fortunately, you can now access your credit reports weekly from all three major bureaus—Equifax, Experian, and TransUnion—at AnnualCreditReport.com. If something seems off, it may be a sign of identity theft.
Staying vigilant helps protect your money and your financial reputation.
Safeguard Personal Information
Cybercrime doesn’t always require advanced tools—sometimes, just a few personal details are all it takes. Be mindful about what you share. Criminals can even use seemingly harmless information like your mother’s maiden name, your birthday, or your hometown to reset passwords or guess answers to security questions. [8]
Be thoughtful about what you share online. Personal milestones, location check-ins, and family details can all be pieced together to create a security risk. Protect documents by shredding anything that includes your bank account information, Social Security number, or any other sensitive information. Store important documents in a secure place, and never carry your Social Security card with you in your wallet.
Leverage Technology to Stay Safe
Technology can be a powerful ally in managing your financial security when used wisely. We always recommend that our clients look into using encrypted financial apps with strong security protocols to track their spending, monitor investments, and manage payments. Automating bills and transfers helps you stay organized and reduces the risk of missed payments, which can lead to costly fees or fraud due to late fees being exploited. As mentioned earlier, a password manager helps create strong passwords and keeps them secure in one place, reducing the temptation to reuse or write them down.
Taken together, these tools can simplify your digital life while adding a powerful layer of protection.
Take Charge of Your Financial Cybersecurity
Digital threats aren’t going away, but the good news is, you can take steps today to protect yourself. Start by evaluating your current habits. Are your passwords strong and unique? Are your devices regularly updated? Are your accounts monitored for suspicious activity?
Small, intentional actions can provide a strong defense against the time, cost, and stress of identity theft or financial fraud. Prioritizing cybersecurity now helps you protect not just your assets, but your peace of mind and financial future.
Sources:
1. https://www.fbi.gov/news/stories/elder-fraud-in-focus
2. https://www.wired.com/sponsored/story/social-engineering-scams-help-spark-uptick-in-cybercrime/
3. https://www.cnbc.com/2024/05/21/family-offices-target-cyber-hacks-ransomware.html
4. https://www.cisa.gov/secure-our-world/use-strong-passwords
5. https://www.cisa.gov/MFA
6. https://consumer.ftc.gov/articles/how-secure-your-home-wi-fi-network
7. https://www.deltacommunitycu.com/knowledge-center/blog/june-2024/how-to-monitor-your-financial-accounts-daily-monthly-and-annual.html
8. https://www.consumerfinance.gov/about-us/blog/what-to-consider-when-sharing-your-financial-data/
The Hatlestad Group is an independent wealth management firm based in Edina, Minnesota, primarily serving successful head-of-household women, late-career executives, and pre-retirees. With a tailored approach to fee-only comprehensive wealth management, they empower clients to live out their next chapter with vision, wisdom, and resources, creating a purposeful and meaningful future. They can be reached by phone at (763) 259-3637, via email at info@thehatlestadgroup.com, or by visiting their website at thehatlestadgroup.com.
This material has been prepared in collaboration with Crystal Marketing Solutions, LLC, and has been edited with the assistance of artificial intelligence tools. The information presented is based on sources believed to be reliable and accurate at the time of publication. This material is for educational purposes only and does not necessarily reflect the views of the author, presenter, or affiliated organizations. It should not be construed as investment, tax, legal, or other professional advice. Always consult a qualified professional regarding your specific situation before making any decisions.