Learn how to keep your financial assets safe in the digital age.
Remember the days when you had to visit the railway reservation counter to book train tickets or make a trip to the bank to deposit a cheque for your SIP investments? Thanks to technologies like UPI and net banking, these tasks are now completed from the comfort of your home with a few clicks. However, these technological advancements also bring an inherent risk – the risk of fraud. It’s essential to pay attention to this risk because your hard-earned money is at stake.
Let’s explore ways to protect your financial well-being and assets in today’s digital era:
1. Organise Your Digital Assets
Begin by gathering and organising all your digital assets in one place. This includes identifying asset ownership, the manner of holding, authorised access, and the platforms used for investments. This seemingly basic task provides a comprehensive overview of your digital asset landscape and who within your family has access and knowledge about them.
2. Strengthen Your Passwords and Implement Two-Factor Authentication
One common yet often underestimated security measure is strengthening your passwords. When setting up a new investment through a brokerage app, we often create simple and repetitive login credentials in a rush. The problem is, if an outsider or hacker gets hold of one of your passwords, they can potentially access multiple platforms. To counter this, create robust, unique passwords for each platform.
Additionally, enable two-factor authentication, which adds an extra layer of security by requiring an OTP sent to your mobile number or email address before any transaction can proceed.
3. Exercise Caution When Sharing Information
In today’s digital age, fraudsters have mastered the art of deception. Scammers impersonate bank representatives with such finesse that unsuspecting individuals share personal financial information without a second thought. Exercise caution when sharing sensitive data. Always verify the authenticity of the person or entity on the other side before divulging any financial information online.
4. Stay Informed and Educate Your Family
Wisdom comes not only from our own mistakes but also from the errors of others. In the digital age, staying informed about the latest scams and fraudulent schemes is crucial. It’s equally important to educate your family members and young ones about the risks they may encounter in the online world. Knowing how to recognise and handle potential threats is a valuable skill.
5. Consider Cybersecurity Insurance
If you frequently engage in substantial financial transactions, some insurers offer cybersecurity insurance to protect you from financial losses due to cyber-attacks. You can pay a premium for this coverage, providing peace of mind and financial security in the event of a breach.
Even the Reserve Bank of India (RBI) recognises the importance of digital transaction security, evident in its awareness campaigns. These methods may seem commonplace, but they are often overlooked and underappreciated. However, practicing these measures can significantly reduce the risk of falling victim to financial scams in the digital age.
In a world where your digital assets are invaluable, safeguarding them is not just a choice but a necessity. By implementing these steps, you can protect your family’s financial well-being and assets in the digital era.
*The article is for information purposes only. This is not an investment advice.