Financial Awareness Day: Is Your Information Secure?

It’s a random Wednesday morning, and Linda walked into the office with a vase of purple hydrangeas and placed them on my desk.

Linda: Here. These are for you.

Me: What have I done to deserve these?

Linda: Nothing. These are hydrangeas. They are known to be extra-lucky and promote wealth, abundance, and prosperity. It’s August 14. Happy Financial Awareness Day.

Me: Well, I love the flowers. And I’m all for wealth, abundance, and prosperity. But a day designated to financial awareness is new to me. What’s the point?

Linda: The point is that every year, August 14, is designed to remind us to take stock of our financial well-being and make sure that we are protecting our assets and personal identifying information against theft.

Me: Yeah, great idea. But what’s the likelihood of someone stealing my identity?

Linda: The American Association of Retired Persons (AARP) reported that American adults lost a total of $43 billion to identity fraud in 2023, an increase of 13 percent.

Me: Are you serious? So, what are people doing wrong?

Linda: Check out this list. These are some areas to evaluate that will make it harder for you to be a victim of financial identity theft.

1. Use Strong Passwords: A unique, complex password for each of your accounts is important. Don’t use the same password for more than one account; otherwise, once a thief has access to one account, they have access to all the others. Change passwords regularly to stay at least one step ahead of the crooks. To help recall your passwords, use a password manager app.
2. Use Two-Factor Authentication (2FA): Whenever 2FA is available, take advantage of it. 2FA adds an extra layer of security by requiring a password and then a secondary form of verification, like a code sent to your phone.
3. Use Secure Connections: Avoid conducting financial transactions on your computer when using an open Wi-Fi connection. Use a Virtual Private Network (VPN) whenever you are on a public Wi-Fi connection. A VPN encrypts your internet traffic and protects your online identity.
4. Monitor Accounts and Credit Reports: Review your credit card and banking statements every time you receive them. Don’t just toss them aside and assume that every transaction was made by you. If you notice anything unusual or transactions that you didn’t make, report them immediately. Check your credit report with each of the three major bureaus for the same reason. Make sure there aren’t any accounts that have been opened that you didn’t sign up for or authorize. One report from each bureau (TransUnion, Equifax, and Experian) is available for free each year, so if you utilize all three, you can check your report every four months at no cost.
5. Use Credit Cards Instead of Debit Cards: Unless you struggle with credit cards, it is better to use a credit card for purchases. Credit cards often offer better fraud protection than debit cards. A credit card can also help build good credit.
6. Be Aware of Phishing: Practice caution when opening unsolicited emails or messages asking for personal information. Always verify the source before clicking on links or providing any details. This goes for texts as well. When you don’t recognize the person on the other end of a call, consider either ending the call or telling them you will hang up and call them. Don’t provide any private information over the phone with someone you can’t be sure you trust or know.
7. Update Your Software: Keep your devices and software up to date. Updates often include security patches that protect against new threats. Identity thieves are regularly trying to stay ahead of secure systems and looking for new and unexpected ways to steal your information.
8. Shred Your Documents: Shred financial documents before disposing of them to protect against identity theft. To avoid discarding personally identifiable information that could be used to gain access to your accounts, adopt a shred-all policy where every piece of paper goes to the shredder instead of the trash or recycle bin. To best protect your information through a shredding process, use a professional shredding company that employs industrial shredders to destroy documents so they can never be read or reconstructed.
9. Shred Discarded Electronics: Don’t store or toss your discarded hard drives, electronic storage devices, phones, or other electronics that could contain private information. Use a professional shredding company to destroy those as well.

By following these steps, you can significantly reduce your risk of identity theft and ensure that your financial information remains secure. Financial Awareness Day is the perfect time to review these practices and make any necessary changes to protect yourself and your assets.

Pacific Shredding is a great resource for ensuring your financial records and all your private information are properly shredded so that an identity thief could never retrieve any information. We will shred even the smallest amount of paper anytime you need it destroyed. In celebration of Financial Awareness Day, call us at 800-685-9034 or complete the form on this page.