Protecting Your Accounts from Hackers

Many of us seem relatively unconcerned about the potential of being hacked, even though our financial security may depend on it. And that's precisely the mindset hackers count on and profit from. You're at risk if you live any part of your life online (virtually impossible not to these days).

Don't head for the hills to pursue a life "off the grid" just yet. Hackers, like most people, prefer the path of least resistance. They cycle through vast numbers of potential victims, searching for easy marks. That means if you employ even the most basic safeguards, your odds of being hacked diminish considerably.

So, let's talk about how to avoid becoming a victim.

In Praise of Strong Passwords

Here's the inviolable online security rule: always have a strong password that is at least eight characters long. Don't use your nephew's name, your birthday, or anything else with a personal connection.

If you want premium protection, take the password generation task out of your hands and use a password management software application or browser that can automatically generate strong passwords for each of your online accounts. But keep in mind that using a browser for password management, for example, means all your passwords are only as secure as your password for that browser.

For the best protection, use two-step authentication to secure your accounts. This type of authentication requires a password and a code sent to another of your devices - a text to your phone or an email. Suppose you want the current gold standard in account protection. In that case, some services also support using an authentication device that generates new codes every few seconds. Apps like Google Authenticator can be downloaded to your phone, or you can purchase a dedicated authentication device.

Manage Your Data

Don't use an app you downloaded two years ago? Don't let it linger. Consolidate your online presence by deleting accounts that have reached zombie status. The less useless information you have sitting online, the better.

Another best practice is to back up your personal information consistently. You have two basic choices: an external hard drive or a cloud-based service. Both will prevent the awful feeling of losing important files, photos, and personal information.

Adjust Your Behavior

Get a fantastic email offer that seems dubious? Delete it immediately. If the slightest internal alarm bell starts ringing, don't follow through. Phony emails are the bread and butter of hackers and phishers for one reason - they still work.

Attachments bear the same scrutiny. If you need clarification on the sender, never open an attachment. In the worst-case scenario, a hacker can take control of your computer, harvest the data, and use your hardware for nefarious purposes.

It's also wise to pay close attention to what you share on social media and in the cloud. Hackers can use anything you post or say publicly to access your computer or accounts. It's important not to underestimate their skill - even the tiniest scrap of seemingly innocuous information can be leveraged against you.

Staying Safe and Secure

Target. eBay. Bank of America. Snapchat. These names represent just a handful of the entities that have been hacked in the last two years. If it can happen to them, it can happen to you.

That's why it's critical to follow the steps outlined above. We can't guarantee our online security, yet we can give ourselves the best chance to avoid hacking-inspired financial disasters.