Cybersecurity: protect your digital assets
This content is for information purposes only and should not be taken as financial advice. Every effort has been made to ensure the information is correct and up-to-date at the time of writing. For personalised and regulated advice regarding your situation, please consult an independent financial adviser here at Castlegate in Grantham, Lincolnshire or other local offices.
In 2023, financial records (e.g. bank statements) are housed, and accessed, online. The days of paper-based documentation are largely gone. Whilst this offers benefits such as better protection for the environment, it also presents new security challenges.
Before the proliferation of the internet in the 1990s, households often stored their financial information in physical storage files. If your home was burned down or robbed, then you potentially faced the irretrievable loss of your records.
Today, many UK citizens depend on the internet to store their financial data, accessing it via a smartphone, tablet or desktop PC from almost any location. This eliminates the risk of physical theft, damage or loss. Yet cloud-based solutions also present a new issue – cybercrime.
Below, our Grantham financial planners offer a summary of cybercrime in 2023 and how it can impact an individual’s wealth and finances if they fall victim. We also suggest ways to protect yourself online. We hope this content is helpful.
If you want to discuss your financial plan with us, please get in touch to arrange a no-obligation financial consultation, at our expense:
01476 855 585
info@casfin.co.uk
What is cybercrime?
Cybercrime describes an illegal activity using computer networks or the internet. This might involve using “hacking” techniques to find vulnerabilities in digital technologies – e.g. to gain unauthorised access to sensitive information, such as a person’s online bank account.
In 2023, cybercrime has evolved to try and adapt to new “cyber security” technologies and efforts. Phishing is a longstanding practice of using deceptive emails, messages or websites to trick individuals into revealing sensitive information (e.g. login details).
Identity theft is another tactic. A few decades ago, when more people kept paper-based files, a common protection measure was to shred your old bank statements. Today, identity theft is perhaps more likely to occur online – e.g. intercepting your password, credit card number or other sensitive information to impersonate you for financial gain.
A data breach is another form of cyber attack. In digital terms, this is equivalent to someone knocking down the house door to steal information. Here, a hacker might force themselves into a system, PC or database to extract personal, financial or corporate data.
Another potential threat is malware. This is malicious software intended to “infect” your device such as viruses, worms, spyware and Trojan horses. Your personal data can then be infiltrated and exploited, perhaps without your knowledge.
How can I protect my wealth and finances online?
Firstly, make sure that any passwords you create are strong, unique and difficult to guess. Try not to use the same password for every online account.
If you think you will struggle to remember them, consider using a secure “vault” or “password manager”. Also, consider making it a habit to change your passwords regularly. If someone finds an old or saved password, this makes it less likely to be useful to a hacker.
Secondly, be careful with apps that you download on your phone or tablet. Whilst platforms like Google Play and the Apple Store try to prevent malicious apps from entering their libraries, these still creep through the filters.
Once malicious software is on your device, it may be difficult to detect or remove. The next time you log into your online banking or other financial account, the software might steal the data you input. This can also happen on a PC if you download a harmful file.
Scanning your device(s) regularly can help identify threats and eliminate them. Sometimes, more drastic measures may be needed – such as carrying out a factory reset. If so, be careful to back up important information such as your contacts, photos, text messages and call history.
Another layer of protection to consider is 2-factor authentication (2FA). Here, you need to take additional action when logging into an online account, such as entering a temporary code that the platform sends to you by text. Or, you might use an app like Google Authenticator.
This makes it harder for someone to steal your passwords and use them to impersonate you, since they do not have your physical device (e.g. smartphone) to complete the 2FA process.
You may also wish to explore ways to make your internet connection more secure. In 2023, a common practice to is use a virtual private network (VPN) to set up a secure line between your device and the network that you want to access (e.g. the internet).
A VPN creates a secure, encrypted “tunnel” for your information to travel through, making it very difficult for hackers to intercept. Be careful with free VPNs, as these may not offer sufficient protection. Instead, consider a reputable paid service.
Finally, follow good practice when accessing emails, messages and browsing online. Avoid suspicious websites and be careful about clicking on links in emails. It is easy to disguise a link and send someone to another, website.
This link to The Guardian, for instance, takes you to The Telegraph!
Conclusion & invitation
If you are interested in discussing your own financial plan or investment strategy with us, please get in touch to arrange a no-commitment financial consultation at our expense:
01476 855 585
info@casfin.co.uk
