Protecting Your Digital Information

In this topic, you'll learn:

• Strategies for keeping personal information safe.
• How to determine if your accounts may have been compromised.
• Ideas for backing up your financial information.

No matter how well your financial institution or other online services may guard your data, they cannot force you use safe computing practices - strategies designed to make it more difficult for someone to access your account. So it's ultimately your responsibility to protect your online identity.

Keeping your identity protected online starts with safe computing practices:

• Choosing secure passwords that have at least eight characters
• Avoiding easy to guess passwords (like a birthdate or family member's name)
• Keeping your passwords confidential
• Using different passwords for different online services
• Keeping your phone or computer safe by requiring a password to use it
• Using only trusted computers when accessing financial accounts, not computers in public places

Another strategy to consider is using multifactor authentication when supported by the services you use. With multifactor authentication, not only is a password required to access online services, but another form of verification is required as well - commonly a code that's sent via text to your phone. Some online services also support dedicated multifactor authentication devices or apps, which can offer even more security.

Auditing Your Online Security

If you save account login details in your web browser, some modern browsers like Google Chrome and Apple Safari offer services that can help you identify weak or even compromised passwords. For example, when using Google Chrome, the Settings page includes options to check your online security, review all saved passwords (including the related site), plus more. 

In addition, there are trusted websites like haveibeenpwned.com that allow you to enter an email address or phone number to determine whether or not it's been found in a major data breech. If your email address, for example, has been found in a breech, you'll be given a summary of the leaked data.

Backing Up Financial Statements

An additional concern about online financial services is long-term backup. Financial institutions don't provide instant access to your information forever, even when using online banking. Your transactions and statements are typically archived after a couple of years (or less). The problem is that experts recommend that you keep copies of your financial records going back several years - you may need them in the event of a tax audit or for financial aid verification. You can order old statements from your financial services institution, but you will be charged for each statement. Mailing you copies of a couple of years' worth of statements can cost well over $100 for each of your accounts.

It's true that you can simply download your statements and save them to your computer, but that doesn't protect you against computer crashes or stolen computers. We encourage you to seek ways to securely back up your information and there are many solutions that vary in their security and ease of use. Services like iCloud, Dropbox, Google Drive, and others can provide a great deal of security - but only if used with strong passwords and even multifactor authentication.

We suggest you investigate backup solutions on your own to find one that meets your needs.