By Sharon Hamman,
How you managed your money a decade ago and how you manage it today are very different. Today, your bank account, investments, insurance policies, and retirement savings are probably all just a tap away on your phone. However, that convenience comes with a risk.
We tend to think of cybersecurity as an IT problem. But as we mark Cybersecurity Awareness Month this October, it’s worth remembering that digital security is also part of protecting your financial wellbeing. Your financial plan can be strong, but if your digital access isn’t protected, your future could still be at risk.
Here are ten things you need to bear in mind for improved digital security:
1. Your bank will never ask for your PIN, password or OTP
This is the golden rule. Banks and legitimate financial institutions will not ask you to share your password, PIN, or one-time PIN (OTP) via SMS, email, a link, or a phone call. If someone asks, treat it as a scam, no matter how official they sound or how genuine the logo looks.
2. Urgency is a warning sign
Fraudsters rely on pressure. Messages warning that your account will be closed, that a payment has failed, or that you must act urgently are designed to make you react before you think. Slow down. A genuine institution will give you time to check.
3. Check before you click
Suspicious links are one of the easiest ways for criminals to access your personal information. Rather than clicking a link in a message, go directly to your bank’s official app or website, or call the number on the back of your card, or on its official website. If a request is real, you’ll be able to verify it there.
4. One password shouldn’t open every door
Reusing the same password across accounts is like using one key for your house, car, and office. If one account is compromised, criminals will try the same details elsewhere. Use strong, unique passwords for your financial accounts. A reputable password manager can help you keep track and keep it secure.
5. Small habits make a big difference
You don’t need to be a tech expert to protect yourself. Switch on two-factor authentication wherever your financial apps offer it, keep your phone and apps updated, and avoid sharing personal or financial information on social media or over public Wi-Fi. Always ensure you are using a secure Wi-Fi service when accessing personal information and be aware of what and who is around you – limit access in public spaces.
6. One person, one phone, one point of failure
In many households, one person manages all the finances, and their access exists on a single device. If that phone is lost or stolen, or that person becomes ill or incapacitated, the rest of the family may be unable to gain access, let alone manage it. Make sure your financial life doesn’t depend entirely on one person or one device.
7. Your family should know where to look for important information
Think about what would happen to your financial information if something happened to you. Would your family know which banks, insurers, and investment platforms you use? Keep an up-to-date record of your accounts, policies, and important documents, and tell a trusted person where to find it.
This doesn’t mean handing over your passwords. Using someone else’s login, even with good intentions, can breach an institution’s terms and complicate the administration of an estate.
A Will also isn’t the place for passwords given that once it is lodged with the Master of the High Court, it’s no longer a private document.
So, where should access details be kept?
Your family doesn’t need logins for your bank or investment accounts given that the executor will deal with these through each institution’s formal process. What they will need is a way into devices and email accounts that hold the records. Many password managers, and some phone and email providers let you nominate a trusted person as an emergency or legacy contact who can request access if something happens to you. Alternatively, keep a sealed note of your phone PIN and password manager details with your executor or attorney, separate from your will, and update it whenever these change.
The aim is to make sure your family can find what matters, when it matters, so that the right people can access it through the proper channels.
8. A breach can ripple through your whole financial plan
Identity theft typically has as ripple effect. A compromised email account or stolen ID number can be used to open accounts, apply for credit, change banking details, or redirect payments. Resolving this can take time and may disrupt your access to banking, investments, and insurance just when you need them.
9. Your adviser isn’t a cybersecurity specialist, but can help protect your plan
A financial adviser doesn’t manage your passwords or your digital security, and shouldn’t. What an adviser can do is help you understand your overall financial position, identify the accounts, policies, and documents that matter most, assist you with setting up a life file, and consider how fraud or a digital breach could affect your plan. That makes it easier to keep your records organised and your family informed.
10. Review your digital security regularly, not only after something goes wrong
Most people only think about digital security after a scare. Instead, make it part of your routine. Each time you review your finances, check your passwords, security settings, beneficiary details, and the record of accounts your family would need.
Good financial planning has always been about protecting what you’ve worked for. Today, that includes the digital doors that is supposed to keep it safe. A few simple habits, and a clear plan for what your family should know, can go a long way towards keeping your financial future secure.
Sharon Hamman, Senior Legal Adviser at Momentum
