The FBI recently dropped a bombshell report on the cost of scams and fraud to Americans. In 2024, the average victim lost around $19,000 each. The total estimated losses to scams and fraud stand at $16.6 billion. That’s an increase of 33% over 2023.
The only way to fight back is by being hyper-vigilant about the possibility of cyber trouble. Cyber hygiene, also known as online hygiene, refers to the simple habits everyone should adopt to ensure their online safety and financial security.
Everyday Cybersecurity Threats in Finance
For the average person, it’s hard enough to guard against outright scams. According to the FBI report, cryptocurrency and investment fraud cost Americans $6.5 billion last year.
But we also bear the additional burden of protecting ourselves against social engineering attacks. AI tools are making social engineering attacks increasingly harder to detect. Social engineering tricks, including phishing and spoofing, identity theft, ransomware, account takeovers, and other cyber attacks, cost Americans $10 billion last year. But there are many other ways in which attackers can hijack your online presence and make off with your money.
- In phishing attacks, cybercriminals use emails, text messages, and chat applications to contact potential victims. They pose as legitimate companies and might send you a poisoned login link to a counterfeit website. These deceptive websites can easily lure people into providing sensitive information, such as login credentials and banking details. Needless to say, victims of these scams can suffer from identity theft or financial losses.
- There is a consistent rise in significant data breaches that compromise everyday email users. At least some of your information is likely to be available on the dark web. Attackers can use an email address from a data breach as a starting point for their malicious activities. Using the email address, they can gather more information about a target. Scraping data from social media is a favorite tactic. That’s how hackers infiltrated some of the most famous gaming palaces on the Las Vegas Strip in 2023. The attack darkened the bright lights of the MGM Grand, Mandalay Bay, Bellagio, Aria, and others for several days.
- There is also an increased risk associated with using public WiFi. They are typically unsecured, serving as a playground for cyber attackers. Attackers lie in wait with MitM (Man-in-the-Middle) or AitM (Adversary-in-the-Middle) phishing kits. The kits intercept data traffic between you and a legitimate website. It can capture logins, MFA codes, and session cookies. Attackers then re-use the stolen session cookies to log into your online accounts without being challenged. Never use public WiFi without a VPN to encrypt your data and protect against hackers.
7 Cyber Hygiene Tips For Financial Security
This short checklist of seven tips is a strong starting point for improving your daily cybersecurity.
Invest in Malware Protection
Secure all your internet-capable devices with reputable antivirus software. Then, add another layer of protection with the most reliable VPN in the USA. Remember to restrict physical access to your devices to prevent tampering. If you work in a public area, secure each device with a PIN or biometric challenge.
Take Password Security Seriously
Invest in a password manager. It’s the best way to make sure your passwords are complex and strong. Enable multi-factor authentication (MFA) where possible.
Secure Online Transactions
Check for a “https” prefix and a padlock symbol on websites where you intend to enter financial details. Use secure online payment methods. Digital wallets provide a more secure payment experience than using debit or credit cards. Regularly check your bank and credit card statements for any suspicious activity. You can limit the damage if you spot them early.
Choose Reliable Trading Platforms
Only trust trading platforms that offer encryption, privacy, and strong security measures. Pick brokers with care, and monitor your dashboards and accounts for suspicious activity.
Social Media Privacy
As seen in the MGM Las Vegas attack, an average LinkedIn account can reveal enough information for an attacker to exploit. The same applies to Facebook, TikTok, Instagram, or X accounts. Avoid sharing private data on social media. Review your privacy settings to reduce the amount of data you share with snoopers.
Encryption Every Time, For Every Thing
Encryption protects sensitive information. Always encrypt each connection between your devices and the internet with a VPN. Additionally, store your secret documents in a secure vault or encrypted drive. You should also use only encrypted communication channels. Apps like Signal provide end-to-end encryption.
Limit Smartphone Apps
Banking and financial apps are convenient, but they also introduce risks. Download apps only from reputable sources. Regularly remove unused or outdated apps. Sadly, security researchers regularly find dangerous apps on Google Play and Apple’s App Store. ‘Bad’ apps may be siphoning off data about your personal habits. Restrict their overly generous default permissions to the minimum.
Your Financial Security May Depend on Your CyberSmarts
Financial literacy increasingly means understanding the impact of cybersecurity on finances. The digital world is not safe. Routine activities like downloading shared files or clicking on links can be hazardous. That’s why we need good cyber habits. Cyber hygiene is a proactive state of mind, plus a method to lessen your exposure to daily cyber hazards. Without cybersecurity knowledge, even savvy and street-smart individuals can fall victim to digital crime.