Simple Ways To Protect Your Accounts, Credit, and Identity

Simple Ways To Protect Your Accounts, Credit, and Identity

Greg Daugherty

6 min read

Fact checked by Vikki Velasquez

Key Takeaways

Scammers continue to target older Americans, so retirees need to be vigilant.

Protect your personal information and don’t share it.

Make sure all of your passwords are strong; use a password manager.

Check credit reports regularly and consider freezing your files.

Activate automatic account alerts.

Stay vigilant and revisit these precautions periodically.

Scams and identity theft are constantly evolving, but one thing never changes: criminals go where the money is, and, increasingly, that’s with the tens of millions of older Americans managing retirement nest eggs. Fortunately, there are steps to take to thwart them. Here are some simple, practical ways to protect your hard-earned money.

Secure Your Passwords and Logins

Everyone’s already got more passwords than they can count, but don’t let the volume lull you into complacency. Keep these precautions in mind:

Make each password unique. If one of your accounts is compromised, thieves won’t have access to your other ones.

Use strong passwords. Don’t use easy-to-crack passwords like your grandkids’ names or 1234. Most sites give you guidance and tell you how strong it is. The federal Cybersecurity & Infrastructure Security Agency recommends passwords that are at least 16 characters using either a random string of numbers, symbols, and letters, or what’s known as a passphrase, a run of unrelated words, such as “HorsePurpleHatRunBay.”

Use a password manager. These apps will create and store strong passwords for many different accounts and automatically fill them in for you when you go to those sites. You just have to remember one password – for the password manager. Many are free, but be sure to choose a reputable one. You can find specific recommendations at Wired.com and PCMag.com.

Enable multifactor authentication. Many online accounts will ask or require you to set up multifactor identification, which provides an added layer of security. You will get a one-time code by text, phone, or email, asking to verify your identity.

Protect Your Credit File

Thieves looking to get credit cards or loans in your name can be thwarted if your credit reports are difficult to access. Here’s how to protect them:

Freeze your files. No one can open an account in your name if your file is frozen. Freezes are free, but you have to arrange them separately with Equifax, Experian, and TransUnion. If you apply for credit later, you need to ask them to temporarily lift the freeze.

Request fraud alerts. This requires lenders to contact you personally before opening an account in your name. You can add one to your credit files, whether or not you have frozen them. They are free, and you only have to contact one bureau to get all three to comply.

Check your credit reports regularly. Review your credit reports periodically to look for any errors or accounts you don’t recognize. You’re entitled to one free report per year from each bureau. The official website for all three is AnnualCreditReport.com. If you find anything amiss, notify the credit bureau, which is required by law to investigate.

Set Up Account Alerts and Monitoring

It’s important to actively keep an eye on your finances, from bank accounts to retirement savings to insurance products.

Monitor your accounts. Pay attention to monthly statements that come in the mail. Take time to open the envelopes and at least scan the list of transactions for any that seem fishy. Opening an online account lets you check your balance and recent transactions anytime. Even if you don’t detect any fraud, you might find you’re being charged for things like subscription services you no longer use.

Report problems immediately. Promptly notify institutions of any suspected fraud, as federal law gives you certain rights, including limits on your liability in some cases.

Protect Your Personal Information

While total privacy may be impossible, there are ways you can keep your personal information safe:

Safeguard sensitive info. That includes your Social Security number, date of birth, and account numbers. Keep them to yourself unless you know who you’re dealing with, and it’s absolutely necessary that you divulge them.

Be suspicious of unsolicited calls, emails, or texts. Most likely, if someone’s asking for personal information, they are up to no good.

Shred financial documents. Thieves have been known to dumpster dive, so shred any financial statements you no longer need.

Secure Your Devices and Internet Use

Conducting financial transactions online is a great convenience, but unfortunately, it can be convenient for thieves, too. It’s important to:

Keep devices updated. Technology companies update their software periodically, often to address security concerns. You can usually set your computers, phones, and tablets to update automatically. You can also purchase commercial antivirus software for further protection.

Avoid public Wi-Fi for financial transactions. It might seem like a good use of time to log onto your bank or brokerage website while you’re sitting around an airport, but not all public wi-fi is secure. This is less of a problem than it used to be, according to the Federal Trade Commission. Its advice: “Look for a lock symbol or https in the address bar to the left of the website address.”

Log out of accounts when you’re done. For added safety, some financial services companies suggest logging out of your browser.

Watch for Common Scams

The best way to protect yourself from scams is to know one when you see it. While scam artists often try to put a fresh spin on them—such as claiming to raise money for a recent natural disaster—there are common red flags. To spot a scam:

Don’t fall for phishing. Emails, texts, and phone calls that include requests for personal information or that ask you to click on attachments or scan a QR code are often scams. Even if they appear to be from a legitimate source, call the company at a number you know to be genuine before taking any action.

Be wary of urgent or threatening messages. Pressure to act quickly—either to take advantage of an opportunity or to avoid some bad outcome (like arrest or a tax lien)—is a classic scam sign.

Know that the IRS won’t call you. Unless you’ve given the IRS permission to call or email you, the agency will initiate contact by sending a letter in the US mail. Similarly, while your bank might call in certain situations, it will never ask for your PIN, password, or other personal information. It already has this info.

Review and Update Your Protections Regularly

Protecting your accounts isn’t a one-and-done exercise.

Update your passwords. Just in case they might have fallen into the wrong hands, it’s worth changing them now and then.

Check your security settings. If you haven’t set your devices to update automatically, you can find and install new updates by opening the Settings tab.

Request and review your credit reports. It’s free!

The Bottom Line

The fallout from a financial scam can be far-reaching, time-consuming, and potentially very costly. It’s important to take precautionary measures. Strengthen your passwords, safeguard your credit files, set up automatic alerts, and hack-proof your technology.