5 Simple Ways to Safeguard Your Online Financial Transactions

Emily, a young professional experienced the shock of her life when £3,000 disappeared from her bank account overnight. Emily, who always considered herself tech-savvy and cautious, fell victim to a phishing email that appeared to come from her bank. This incident not only led to a financial loss but also shook her confidence in online transactions.

Like Emily, many of us trust the internet for banking and shopping. But, as cybercriminals get smarter online and put us at risk, we must be more careful. In this blog, we share the five simple ways to keep your money safe online, helping you navigate the digital world with confidence.

5 Simple Ways to Safeguard Your Online Financial Transactions

Here are 5 simple ways to safeguard your online financial transactions:

1. Use strong, unique passwords for each financial account

Using strong, unique passwords for each financial account is your first line of defence against online fraud. In this era where data breaches are common, a compromised password on one platform can endanger all accounts if the same password is reused. So, how do you create strong passwords?
A strong password combines upper and lower case letters, numbers, and symbols, extending beyond 12 characters to create a nearly unbreakable code. If you are scared that you may not be able to remember numerous complex passwords, password managers may be a perfect solution for you. It will help you not only store passwords safely but also generate strong passwords for you, ensuring that each account is protected by its unique barrier against cyber threats.

2. Enable two-factor authentication (2FA)

Enabling Two-Factor Authentication (2FA) adds an extra security layer to your financial accounts, acting as a double-check to ensure it’s you accessing your money. 2FA requires not just your password but also a second piece of information—be it a code sent via SMS, a notification on an app, or a token from a hardware device. This means even if a hacker gets your password, they can’t access your account without the second key. For example, our platform Know Your Dosh uses 2FA as an added security layer on your account. This ensures that your financial information is protected against unauthorized access.

3. Recognize and avoid phishing scams

Phishing scams trick you into giving away personal information, often through emails or messages that look like they’re from trusted sources. To spot these attempts, look for unusual sender addresses, urgent or threatening language, and links or attachments that seem suspicious. Always verify the authenticity of a request by contacting the company directly using information from their official website. If you suspect a phishing attempt, do not click on any links or provide any personal information, and report the attempt to the appropriate authorities or your bank’s fraud prevention team.

4. Use secure networks for financial transactions

Conducting financial transactions over public Wi-Fi poses significant risks, as these networks often lack adequate security, making it easier for cybercriminals to intercept your data. Using a Virtual Private Network (VPN) can greatly enhance your security, encrypting your internet connection regardless of the network you’re on. Before performing any transaction, ensure the network is secure by looking for encryption indicators, such as a padlock symbol in the browser address bar, and verifying the network’s authenticity. This proactive approach minimizes your vulnerability to cyber threats.

5. Regularly monitor your accounts

Regularly monitoring your accounts is essential for detecting unauthorized transactions early. Many banks and financial institutions offer tools and alerts that notify you of unusual account activity. Always review your statements and set up notifications for transactions. If you spot something suspicious, contact your bank immediately to report the incident and protect your funds. Quick detection and response can minimize damage and ensure your financial safety.

Signs your financial information may be compromised

Let’s look at how to notice if someone might be tampering with your financial details. It’s important to keep an eye out for these warning signals so you can act quickly.

• Unexpected transactions: Charges on your bank statement that you don’t recognize could indicate unauthorized access to your account.
• Bills for unknown purchases: If you are receiving bills for items you didn’t buy, someone else may be using your financial details.
• Accounts you didn’t open: If you’re getting notices about new accounts or loans you didn’t apply, this can be a sign of identity theft.
• Missing bills: If expected bills stop arriving, it could mean someone has changed your account details to divert your mail.
• Suspicious activity alerts: Alerts from your bank about unusual activity are a prompt to review your account for potential fraud. Do not ignore them.

What should I do if my financial information is compromised?

If your financial information is compromised, taking immediate action is crucial to protect your finances and identity: here’s a quick guide on what to do:

• Contact your bank: Inform your bank or credit card provider about the compromise. They can freeze your accounts and issue new cards.
• Change passwords: Update the passwords for all your financial accounts to prevent further unauthorized access.
• Place a fraud alert: Contact credit reporting agencies to place a fraud alert on your credit reports, making it harder for thieves to open accounts in your name.
• Monitor your accounts: Keep a close eye on your financial statements for any unusual activity.
  Report the Fraud: Notify the appropriate authorities, such as Action Fraud in the UK, to help stop the fraudsters.