Are you concerned about the safety of your wealth? According to a recent University of Maryland study, cyberattacks on your computer may average 39 attempts per day, and most are not even human-generated. Instead, the study demonstrated the attacks come from “brute force” software programs that seek out “thousands of computers at a time” seeking vulnerabilities through simplistic usernames and passwords.
In addition, Cobalt, an international cybersecurity firm, recently cited increases in power-phishing, ransomware attacks, and crypto-related crime due to heightened use of AI in these attacks. According to Cobalt, the average computer, connected to the Internet, can expect an average of 2,244 cyberattacks per day.
Financial institutions and investment accounts are a favorite target for cybercrime. As famed bank robber Clyde Barrow was once quoted, “It’s where the money is.” Not only might your money be at stake, but so is your sensitive personal data associated with these accounts, such as your Social Security number, your birthdate, and other personal information that can be used for other nefarious purposes.
FSA Wealth Partners takes client information security seriously. Here are our recommendations.
Best Practices for Securing Your Financial Accounts
As expected, securities regulators, such as the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) and the Consumer Financial Protection Bureau (CFPB), are all focused on protecting the public against cybercrime. FINRA recommends the following tips to protect your financial accounts:
- Watch what you click: Even an innocent-looking link can be hazardous to your wealth. Don’t respond to or access any unknown link provided. Confirm its legitimacy with the provider first. Any communication with an unknown source can open up your information to be stolen.
- Use strong, uncommon passwords: The University of Maryland study demonstrated that cyberattackers especially look for simplistic passwords that often mimic usernames. Make sure your passwords are unusual and utilize many capitals, numbers, and symbols in random order and avoid using your name, birth date/year or ZIP Code.
- Enable multi-factor authentication (MFA): Using MFA can effectively reduce the risk of cyber hacks into your account. It may be inconvenient to wait for a texted code or authenticate via fingerprint or facial recognition, but the extra step is worthwhile.
- Maintain your security software on all devices: Hackers continually update their tactics with ever-sophisticated software, so anti-virus, anti-malware, and other protective software must continually be updated to keep up. Make sure you update your security on all your devices, not just your desktop or phone.
Avoid using other devices and in public venues: Only use your own device to access your financial accounts and avoid doing so in public venues with Wi-Fi. Hackers may access your passwords and accounts by intercepting your information and public Wi-Fi may not be as secure.
Recognize and Avoid Financial Scams
Financial scams are more sophisticated than ever. Not only are fraudsters using well-known logos on “phishing” emails or posing as legitimate representatives of trusted institutions, sending fake invoices with payment links and threats of account lock-ups are common. Some common scams today:
- Employment-related scams: Potential victims are offered a lucrative remote job (they didn’t apply for) and asked for their Social Security number and other personal information to “complete their application” or payment information to “pay for needed training.”
- Cryptocurrency scams: “Crypto” profits often seem like easy money and scamsters will offer “ground-floor” opportunities to buy crypto at discounts or set up a crypto account. Not only can personal information be lost, but victims report losing large deposits and payments for cryptocurrency in fraudulent accounts that don’t exist.
- Celebrity-endorsement scams: A relatively new scam involves thieves using unauthorized pictures and endorsements of well-known financial and other celebrities to get victims to donate money to causes or help the celebrity with a cause or purchase an endorsed financial product.
Why Identity-Theft Protection in Wealth Management Is Critical
Not only is personal information security a high priority for financial regulators and institutions, it is critical that everyone take measures to protect their identity and information themselves. Necessary steps should include:
- Check your credit report regularly and lock/freeze your credit report with the three credit bureaus (Experian, Transunion, Equifax).
- As mentioned, use strong, varied passwords and enable MFA functions to accounts.
- Beware of “phishing” (unknown inquiries or offers) attempts via text or email messages.
- Shred your hard-copy paper documents with sensitive information, such as Social Security and account numbers.
- Review bank, credit card, and investment accounts regularly to detect irregularities or unknown transactions.
How FSA Safeguards Client Information
As a federally Registered Investment Advisor, FSA Wealth Partners is committed to guarding and protecting our clients’ personal information. As a private firm, we do not share client information with any affiliated company. All client information is confidential, and we do not share such information with third parties unless authorized by our clients; these third parties are normally other professionals, such as attorneys or accountants, for the sole purpose of serving the client. We strive to secure such information via physical, electronic, and procedural safeguards which are regularly reviewed and updated as needed. We also conduct an annual vulnerability test as well as relevant penetrating testing of our systems. In short, we strive to be certain no client information is accessible by outside parties or bad actors in the world.
A Wealth Manager That Addresses All Your Financial Needs
At FSA, we empower professionals, families, and retirees to match their financial aspirations with a life they love. Not only with guidance on financial and investment planning matters, but in all areas that could affect your hopes and dreams, like protecting your wealth from cyber theft.
Contact us today to schedule a consultation and begin building a plan tailored to your unique vision for this year and beyond. Call us at (301) 949-7300 or email questions@FSAwealthpartners.com.
FSA’s current written Disclosure Brochure and Privacy Notice discussing our current advisory services and fees is also available at www.fsawealthpartners.com/disclosures or by calling 301-949-7300.
