How to Protect Your Financial Information Online: 10 Steps

By J. Mesa

You bank, pay bills, invest, and shop online. That convenience puts your financial information within reach of hackers and scammers, who keep finding new ways to get at your data and your money.

Here are ten steps that keep your eye on the money, followed by what to do if something goes wrong.

How do criminals steal financial information?

Phishing. Fake messages from “your bank” lead to fake login pages.
Data breaches. A company you do business with loses your details.
Reused passwords. Attackers try leaked passwords on banking and payment sites.
Malware. Malicious software records what you type.
Phone scams. A caller poses as your bank’s fraud team.
Card skimmers. Devices on gas pumps and ATMs copy your card.
Account takeover. A criminal resets your password through your email.

1. Use strong, unique passwords

Using the same password for several accounts lets an attacker open all of them with one leak. Use a different, long password for every financial account. A password manager creates and stores them.

2. Turn on multi-factor authentication

Add a second step at login for your bank, card, investment, and payment accounts. Add it to your email too, because password resets go there. An authenticator app is stronger than a code sent by text.

3. Set up account alerts

Turn on alerts for every transaction, login from a new device, and change to your contact details. An alert lets you catch fraud in minutes.

4. Be careful with personal information

Scammers try to collect your name, address, Social Security number, and card details. Before you give personal information online, confirm the person or company that is asking. Your bank will not ask for your password or a one-time code by phone, text, or email.

5. Keep software and devices up to date

Hackers exploit flaws in outdated software. Use the latest versions of your operating system, browser, and banking apps, and turn on automatic updates.

6. Use security software and a firewall

Security software and firewalls help block malware and unwanted connections. Run them on all your devices and keep them updated.

7. Shop with care

Buy from retailers you can verify
Check that the site uses HTTPS before you enter card details
Pay with a credit card or a digital wallet
Avoid saving your card on sites you seldom use

8. Use secure networks for banking

Don’t log in to financial accounts on public Wi-Fi. Use your home network, your phone’s mobile data, or a VPN.

9. Freeze your credit

A credit freeze blocks anyone from opening new credit in your name. It is free. Place one with each of the three bureaus: Equifax, Experian, and TransUnion. Lift it for a short time when you apply for credit.

10. Review your accounts and credit reports

Check bank and card statements every week
Get your free credit reports at annualcreditreport.com
Look for accounts and inquiries you don’t recognize

How do I know if my financial information was stolen?

Charges or withdrawals you did not make
Bills or collection notices for accounts you never opened
A drop in your credit score with no cause
Missing mail, or statements that stop arriving
A notice that your information was part of a data breach
A rejected tax return because someone already filed with your number

What should I do if my card or account is compromised?

Call your bank or card issuer using the number on the back of your card. Ask them to block the card and dispute the charges.
Change your passwords for the affected account and your email.
Place a fraud alert or a credit freeze with the credit bureaus.
Report identity theft at IdentityTheft.gov, the Federal Trade Commission’s recovery site. It gives you a step-by-step plan.
Report the fraud to the FBI at ic3.gov.
Keep records of every call and letter.

Report fast. Your legal protections depend on how soon you notify the bank.

Is online banking safe?

Yes, when you take the steps above. Banks invest in security, encrypt your connection, and monitor for fraud. Most losses happen when a customer is tricked into giving away credentials or approving a transfer. Your habits are the layer the bank can’t supply.

Are payment apps safe?

Apps such as Zelle, Venmo, and Cash App are safe for paying people you know. They move money fast, and a payment you authorized is hard to reverse. Scammers know this.

Send money only to people you know and trust
Confirm the recipient’s phone number or username before you send
Turn on a PIN or biometric lock in the app
Never send a payment to “verify” your account or to receive a refund

Is a credit card safer than a debit card?

For online purchases, yes. US federal law caps your liability for unauthorized credit card charges at $50, and most issuers waive even that. With a debit card the money leaves your bank account, and your protection shrinks the longer you wait to report.

How do I protect my business finances?

Use a dedicated computer or browser for online banking
Require two people to approve wire transfers and new payees
Confirm any change in a vendor’s bank details by phone, using a number you already have
Turn on multi-factor authentication and alerts for every business account
Review account activity every day
Train staff who handle money to spot invoice and payroll fraud

Business email compromise, where a criminal poses as an owner or vendor to redirect a payment, costs businesses more than any other online fraud. The phone call to confirm is your best defense.

How do I spot a fake call or text from my bank?

It asks for your password, PIN, or a one-time code
It tells you to move money to a “safe account”
It pressures you to act right now
The caller ID shows the bank’s name, which criminals can fake

Hang up, and call the number on your card.

Should I pay for identity theft protection?

A paid service watches for your data and helps with recovery. It can’t prevent theft. You can do the most effective steps yourself for free: freeze your credit, turn on alerts, and review your reports. Consider a paid service if you want the monitoring handled for you.

Your next step

Turn on transaction alerts and multi-factor authentication for your main bank account today. Following these steps protects your financial information and lowers your risk of becoming a victim. If your business wants to protect its accounts and train the staff who handle payments, contact Cerberus Cybersecurity about our cybersecurity training.