How to protect your financial information


Data breaches hit a record high last year, meaning the chance of personal data theft is also increasing.

According Annual IBM Global Survey, the average data breach costs businesses $ 4.24 million. This is the highest figure in the 17-year history of the IBM report.

These studies and other similar studies always present these violations from the perspective of the hacked company. But what if you are one of the customers whose data is exposed as a result of the breach?

While there are safeguards in place to protect you from the financial consequences of a fraud, it can take months (or even years) to remove it from your records. And until that happens, you may have bad credit that is interfering with how easily you can qualify for online loans and lines of credit.

A bad credit score can even stand in the way of getting a job, a new home, or car insurance. Just like online direct lenders, an employer, owner, or insurance company can check your credit to make decisions about your character.

With so much to do when it comes to scams, an ounce of prevention is worth a pound of medicine. Follow these tips to keep your financial information secret – whether you’re banking, borrowing money, or shopping online.

Don’t share your information often

Your personal details are kept confidential. Only legitimate retailers, online direct lenders, schools and government institutions should ever see this data. And they should only be able to access this information under certain circumstances.

When it comes to borrowing money online, you have to provide your personal information in the online application form. However, you don’t need to submit your financial details to the lender before this step. Only send this information after verifying that the lender has a solid security policy.

You can safely compare a personal loan or credit line without revealing your personal information. In fact, you should be viewing these details in Incognito mode.

Do not repeat passwords

Reusing the same email and password combination on all financial accounts makes you even more vulnerable to fraud. If the data breach is related to one account, it reveals login details for all financial accounts.

By creating a unique password for each account, you isolate your exposure to that one account. This can help you recover your identity after identity theft.

Moreover, create a unique password for each account. A password can be a sentence or a set of unrelated words that contain special characters. This string of words is statistically harder to break than traditional passwords.

Review your statements carefully

Each year, you have three options for checking your credit report for free. Check out this link for how to do this.

Once you’ve done this, read your credit report carefully, line by line. You will want to keep an eye on any inaccuracies or errors. Even a small spelling mistake on your behalf can cause problems downstream.

Check each credit account with your name to make sure your payment history and balance match your details. It’s also worth paying attention to any cash withdrawals that you don’t recognize in your file.

Some cash advance lenders will approve loans without checking the loan. This makes it easy to become a scam impersonating you, so try these quick loans first.

If you see anything that looks suspicious in your file, contact the credit bureau who generates the report. You can also visit IdentityTheft.gov for the next steps.

Takeaway

Fraudsters attack major financial institutions because of all the information they have about their clients. While large corporations have a legal obligation to protect the data they collect from you, sometimes their protocols are not enough. A talented hacker can bypass their defense.

Therefore, you should do whatever you can to protect your information each time you share it. Subtle changes to the way you browse the web, manage passwords, and view your accounts can reduce the financial impact of a data breach.

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