4 Ways to Keep Your Financial Data Safe
While it’s impossible to scam-proof your life, you can take steps to limit exposure to scammers.
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With data breaches and new scams constantly emerging, you might be wondering: How can I keep my financial data safe?
The bad news? It’s not easy, especially given the increasing sophistication of scammers.
“There’s no silver bullet to protect you from all threats,” says John Breyault, vice president of public policy, telecommunications and fraud at the National Consumers League, a nonprofit advocacy group.
The good news?
“There are steps you can take to reduce your risk,” he says.
Experts share their tips for keeping your financial information safe.
1. Treat all inbound communications with suspicion
Impersonation scams — where scammers pretend to be a business or financial institution — are among the most commonly reported scams to the Identity Theft Resource Center, a nonprofit that provides identity crime education and assistance.
“The No. 1 rule is, if someone is presenting you with an offer that’s too good to be true, it probably is,” says Clayton LiaBraaten, senior executive advisor to Truecaller, a caller ID and spam-blocking service.
That includes emails or texts that claim to offer jobs, money, sweepstakes prizes or other winnings.
“The No. 2 rule is, be wary of any inbound communications that are asking you for any personally identifiable information,” he adds.
If someone calling asks for your address, contact information, Social Security number or banking details, hang up right away, he says.
Thanks to AI, scam calls can sound completely legitimate, making it easier than ever for people to get tricked into thinking they are communicating with a legitimate caller.
“Anyone can sound like an authority figure,” LiaBraaten says.
That’s why Yolanda Ayira, who holds digital literacy classes for seniors at AT&T Connected Learning Centers, urges participants to end calls right away if the caller asks for money, even if it sounds like a family member.
Instead, she suggests, hang up and try them back on a known number. Even if the voice sounded like someone you know, it could be AI.
“Call and verify,” she says, and don’t worry about being rude when your finances are on the line.
2. Keep information private when you can
Decline to share sensitive information when possible, whether it’s your Social Security number at the doctor’s office or an app requesting your data, suggests Eva Velasquez, president and CEO of the Identity Theft Resource Center.
“The more you put out there, the more risks and vulnerabilities you create for yourself,” she says.
Similarly, consider turning off “sharing” or “public” settings on payment apps and other apps with social components. That will allow you to keep more of your information private.
“Unless you can come up with a concrete reason worth sharing that information, just don’t,” Velasquez says.
3. Monitor (and consider freezing) your credit
There are paid credit monitoring services that can alert you to new credit applications made in your name, large transactions or other changes to your account.
You can also get access to free credit monitoring through some banks. The website AnnualCreditReport.com allows you to access free weekly credit reports.
Velasquez recommends credit freezing as another protective measure. Freezing your credit prevents anyone from opening up a new account in your name.
“It’s really one of the most robust tools,” she says.
If you want to apply for a new line of credit yourself, you’ll have to “unfreeze” your credit through each credit bureau, either online, by phone or by mail.
4. Focus on reducing the risks you can control
While you might not have any control over a company’s data breach or third-party data sellers, you can incorporate smart privacy protections into your daily life, Breyault says.
Add two-factor authentication to your financial and email accounts. Don’t log into financial accounts on public Wi-Fi networks. Keep the software on your devices’ operating systems updated. These are easy but important steps to take, he says.
Catching fraud early can also minimize damage. Monitoring your credit card and bank statements for errors can help you flag problems early.
If you do discover fraud, alert your financial institution immediately. You can also report the fraud to local police, the FBI, the Federal Trade Commission and your state’s attorney general’s office.
“Even if you take all these steps, bad things can still happen,” Breyault says.
But at least you can minimize your chances of compromising your financial data.