Do you know that online security is fundamental to your financial security? Let’s analyse this in detail.
As the world becomes more and more digitalized, the financial threats that everyday people are exposed to increasingly become digital threats, too. According to the Business Standard, 69% of Indian businesses faced cyber attacks last year, with the full economic costs of that risk not yet established.
Therefore, protecting yourself and your assets online is absolutely crucial, and should form a key component of your personal finance strategy. This rings especially true for those conducting business online.
Online Security: Important Tips to follow
1. Protecting Yourself
Increasingly, business is being done online and investments, too. Whether through brokerages hosted via the internet, or in the cryptocurrencies that exist entirely through the digital medium, Indians are choosing to deploy the web as their instrument of choice in making money.
A recent research analysed found that the average financial loss per person to online financial scams is Rs 6.81 lakhs, with the highest rate countrywide set at Rs 8.19 lakhs.
So, protecting yourself against scams is a three stage process. Firstly, ensure that you have awareness of common scams and how to avoid them. Secondly, introduce security checks on your online accounts, and be judicious with where you place your money. Lastly, ensure that you have a contingency plan in case you do fall victim to a scam; there are legal avenues to pursue to recover your money.
2. Protecting the Home
Scammers and hackers will not just target you and your business; there are bigger forces at play that are, increasingly, targeting the government. In July 2019, it was reported that US utility companies had been targeted by sophisticated hacking groups, an indication of both the ability and willingness of rogue elements to directly target utilities.
With an impact on your livelihood and well-being, it’s important to have your own backup plans for if utilities are affected. In financial terms, this means having well-rounded and secure insurance that will cover any eventuality; including downtime, or damage, to your home as a result of wider-spread attacks on utility.
3. Utilizing Technology
There are several up and coming fintech apps and technologies that will aid your security. Much of the technology being developed by banks allows for proprietary protection of your details and valuable financial data, while also helping to improve convenience. However, a word of caution, is in that you should be careful with what apps you do pick.
According to TechBeacon, up to 97% of apps marked “fintech” on the various smartphone app stores lack the basic security features required to make them safe and secure to use. So, develop an eye for detail and what makes good technology, and use it when scrutinising new tools.
Convenience is important, but your economic well being cannot be compromised, even for an excellent app.
Personal finance is increasingly under attack from people across the web. You need to save a substantial amount and work towards your retirement planning. Hence, preventing yourself is absolutely paramount in ensuring your financial health and freedom. Taking diligent steps to safeguard your accounts is most important, but, as always, be careful about what technology you do choose to employ.
What steps have you taken to ensure your online security? Do share your views and ideas thereon.