From 2FA To Stronger Passwords: How You Can Protect Your Financial Data
The more you learn about digital security, the easier it gets to keep your financial accounts safe.
By Rashid Ali
Though numerous awareness campaigns are being carried out every day, security concerns that can affect users have been increasing rapidly. According to recent RBI reports, fraudulent transactions worth INR 14.57 billion took place in the financial year 2023-2024. Hackers have constantly improvised their means of actively stealing sensitive information. Moreover, Internet banking and online shopping have become a way of life, which has led to data security being an important concern.
Cyber crimes have been increasing, which explains why there is a need for effective measures for personal and financial information. People should understand the need for robust security systems to avoid these cyber threats. Even the smallest breach of security can lead to harm of great dimensions for an individual, a start-up, or an organisation. In response to this, here are some measures that everyone should know to avoid financial data breaches.
Look Out For Phishing Scams
Phishing is one of the most common forms of cyber threat, where a scammer tries to get personal information from an individual. These usually begin in the form of legitimate emails or messages asking for sensitive details, and once they get a small piece of basic information from that person, they take it up a notch and ask for the OTPs and CVV numbers to carry out fraudulent transactions.
Since these emails are apparently from trusted companies, it is essential to avoid responding to such emails and instead verify their authenticity by contacting the company through official channels.
Always Use Secure Networks
Wi-fi provided in public places by cafes and airports is not always secure, which makes it easier for scammers to get access to sensitive information. Data shared over these networks is easy to intercept. Even if someone connects to these unprotected connections, they should avoid making financial transactions; instead, they should do it with a virtual private network (VPN) or get a hotspot for the same.
This helps create a secure connection with which even hackers can't get access to sensitive information.
Use Strong Passwords
When setting up important accounts, people should use difficult passwords consisting of numbers, symbols, and a mix of alphabets. A good combination of passwords would be using uppercase and lowercase letters and using special characters like #, @, %, ^, & etc. Consumers who use easy passwords like birthday dates, phone numbers, or a series of numbers or alphabets are likely to get scammed.
It is also advised that one password should not be reused for other accounts and should be changed from time to time. A password manager ensures that users do not use the same passwords over multiple sites and suggests new passwords.
Two-Factor Authentication
Two-factor authentication (2FA) is a process where one has to provide login details with another form of authentication; it generally includes a code sent to their phones. This extra step enhances the security of the account. This can help protect sensitive information from being stolen. Two-factor authentication ensures that only authorised users get access to the account, which can help to prevent fraud.
Many companies and institutions that handle the sensitive information of their customers implement this type of authentication before one can log in to their accounts.
Regular Monitoring
People should conduct regular financial audits that can help keep track of all the sensitive information. They should fix any vulnerability that can cause a security breach. If anything seems suspicious, it is crucial to report it to the financial institute. Being quick can help avoid harmful losses and help retrieve any stolen funds as soon as possible.
Data protection is crucial nowadays, as the world has been increasingly diving more into the digital realm. The more you learn about digital security, the easier it gets to keep your financial accounts safe. Understanding the potential cyber threats will help an individual significantly reduce the risk of cyberattack. As online transactions continue to grow, it is advisable to look after their financial commodity.
(The author is the Managing Director of Ezeepay)
Disclaimer: The opinions, beliefs, and views expressed by the various authors and forum participants on this website are personal and do not reflect the opinions, beliefs, and views of ABP Network Pvt. Ltd.
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