Lately, it seems like large companies are announcing major data breaches every other week.
Unfortunately, information such as your Social Security number (SSN), payment accounts, online preferences, usernames and passwords, and passport details is compromised regularly, even when you don’t hear about it. That’s partly because many smaller companies lack the resources or expertise to quickly detect system breaches.
As unfortunate as these security breakdowns are for businesses, they can wreak even more havoc on consumers. Unless you’re off the grid completely, there is no foolproof way to avoid the consequences of a data compromise.
However, you can take steps to ensure your information is as safe and secure as possible. For the upcoming new year, consider a digital spring cleaning of your personal information. Updating your digital accounts can help limit your exposure to security incidents across the companies you interact with online.
Just like your home, your car, or your office, take a moment to clean up your digital life this new year, with special focus on any accounts tied to your finances. Here are five simple steps to get started.
1. Delete financial apps you aren’t using
Most of us use financial technology (fintech) apps to manage our finances and perform related tasks. While these mobile apps can be helpful, many of us install them, use them a couple of times, and never again. Some of these applications even require us to provide our banking credentials during setup to function correctly. This process is commonplace, but it also raises several security concerns.
When you’re not using a mobile app, but it remains on your device, it can also be hard to tell whether your personal information is at risk if a data breach occurs or your device is compromised. If you have apps like this, the best thing to do is to back up your data, then cancel each account and remove the app from your smartphone, tablet, computer, or other device.
By doing this, you’ll take a small but significant step toward protecting your financial information. It will also free up space and other resources on your devices for what you actually use.
2. Clean up financial documents you don’t need
Another strategy to help clean up your digital financial life is to evaluate your level of document hoarding. Most people have several hundred to tens of thousands of documents with financial information saved on their computers and mobile devices.
While some of these files may be helpful to retain, such as e-filed tax returns, loan documents, or year-end statements for credit, debit, and savings accounts, you can permanently delete many others.
In today’s tech-enabled world, financial institutions must retain copies of most of these documents for future reference, so you don’t need to store everything that comes your way. Check each company’s retention policy before deleting anything you think you may need in the future.
Sometimes, they will only allow online access to the documents for a year or two. However, you can usually contact the institution directly to obtain records dating back at least five years.
For the items you need to store, create a folder to organize what you want to keep and transfer saved documents there. Delete any unnecessary documents, including those automatically saved to your download folder.
Doing this will help declutter your digital life while reducing the risk of data theft if your computer is breached or stolen. Be sure to make regular backups of your devices just in case you accidentally delete something you need.
3. Unsubscribe from newsletters, deal alerts, and other communications
Most online businesses encourage you to sign up to receive newsletters, deal information, discount alerts, and other electronic communications when you visit their website. If you elect to receive this information, it may be delivered to your email inbox, via a text message, or a push notification.
If you want to declutter your digital life while also protecting which organizations have your contact information, put in the time to unsubscribe from what you no longer find interesting, helpful, or need.
It’s common for people to delete emails upon arrival when they don’t want or need them, but unsubscribing is often a better option. Go through your email inbox and spam folder to see what you can opt out of, and be diligent about doing the same for new emails you receive throughout the new year.
Be careful when unsubscribing from illicit spam emails, though. It’s often better not to open these emails at all and mark them as spam instead.
4. Update your website & app passwords
One of the simplest things you can do to start fresh in the new year is to update your website and app passwords. Think about the apps and websites you use regularly, including your online banking providers, credit accounts, retailers, etc., and change your passwords if it’s been a while.
To ensure your data is secure across the board, also consider sites you use less frequently. Maybe that includes an online retailer or a news outlet you accessed once. If you’re unsure when you last changed your password there, update it now or delete the account altogether.
If your password is considered weak and not unique, you should change it about every 3 months. If you use strong, unique passwords, you won’t need to change them as much.
If you have numerous passwords, consider using a password manager or exploring other ways to securely manage and store them. Also, check whether the websites where you currently have accounts recommend alternative ways to access your account instead of traditional passwords.
5. Boost your security knowledge by reading user agreements
Finally, identify all companies and websites that have your name, email address, and other personal information, and review their privacy, storage, and sharing practices.
We all know our data is valuable, but we’re less aware of how organizations use it once they have it. Each organization that collects user data should, at a minimum, publicly provide a terms of service agreement and a privacy policy. You can typically access these documents via a hyperlink in the footer section of a company’s website. Most people could probably do a better job at taking the time to read them.
If you see something you don’t like, be sure to unsubscribe, opt out, or deactivate your account altogether. Most of the time, you can do this online, but you may also need to contact some organizations by phone.
Final thoughts on protecting your finances with a digital cleanup this new year
Your digital life requires just as much, if not more, upkeep than your physical life. So be sure to take these tips to heart. Having your financial information stolen and used for nefarious things can make life a living hell. By taking a few precautions upfront, you can help ensure a happier and healthier new year.
If you’ve already nailed these tips and are eager to do more with your finances this next year, check out our top financial resolutions article to see what else you can do to improve your situation this upcoming year.