Money is hard. It's hard to lead, and even harder to keep. With the annual cost of living rising for everyone, it's no wonder Aussies are finding it hard to maintain their bank accounts – and the last thing we need on top of this is the risk of losing our hard-earned cash to crime.
Our money is under attack from all sides, so: between physical theft, cyber scams, identity fraud and bad financial practices, it can feel like there is little hope of keeping what little we have to keep going. But not for long. The following practical strategies will help you build strong financial security in everyday life, and in every way.
Protect Your Bank Account Online
First, let's look at some practical steps you can take to protect your money. Your money is only as safe as your passwords; Although online banking is generally secure, requiring you to use multi-factor authentication to access your money and information, this does not always prevent bad actors from gaining access.
Third-party payment systems can make one-click payments on your behalf, requiring strong passwords to prevent malicious access; however, you may be vulnerable to tracking with an unsecured Internet connection. Using a VPN is a great way to reduce the risks associated with online tracking. Behavior is a key consideration, however; caution is the word, especially when accessing financial services on public Wi-Fi networks.
Protect Yourself from Scams and Identity Theft
A good password and VPN aren't enough to protect you from the worst when it comes to digital financial security, however. Most cybercrimes are committed by using social engineering rather than hacking smart people; Phishing scams are very common, where fraudsters spoof trusted websites, login screens or individuals to obtain personal information from the target. Knowing what to look for in a scam is a good start, as there are always tips you can use to distinguish a genuine message from a fake one.
Protect Personal Financial Documents and Valuables
Although digital fraud and cybercrime are new trends, accounting for the majority of fraud-related financial losses in Australia, there are still significant risks in the virtual world. Paper-based pay statements and bank statements are still around, mishandling them can open you up to identity theft. Safely disposing of documents by shredding them is a starting point of defense here, as is keeping sensitive records safely in your home to reduce the risk of theft.
Build Long-Term Financial Stability
Finally, you are the biggest barrier between you and financial stability – as evidenced by the steps you can take yourself to improve your financial security above, but also in terms of how you manage the money you have. The right way to budget and save will put you in a better position in the long run, especially against unexpected issues like job loss, cyber crime or economic pressures.
An emergency fund for such unexpected events is a good place to start – and should be able to cover up to six months of living expenses. A long-term savings vessel with a high interest rate is ideal for long-term savings, and it's even better if it allows you to benefit from rising global markets.
