In past years, it seemed as though news of a major company’s data breach was announced every other day. Personal identifying information, including payment details, online preferences, usernames and passwords, and even passport details were all compromised throughout the last twelve months.
As unfortunate as these breakdowns in security 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 safe and secure. For this New Year, consider your need for a digital spring cleaning of sorts. Getting a fresh start from a digital perspective can help limit your exposure to incidents of failed security among the companies you interact with online.
Just like your home, your car, or your office, take a moment to evaluate your need for a fresh start in the new year, with a focus on the technology you use to help manage your life and your finances. Here are five simple steps to get started.
1. Delete Financial Apps You Aren’t Using
Many of us utilize financial technology (fintech) apps to help organize our money and other things on a daily basis. Services like Mint provide a clear picture of what’s happening with our spending and saving each minute of the day, while apps like Digit and Qapital make it easier to save without giving it much if any thought.
While these mobile apps are helpful for a lot of users, many of us install them, use them a couple of times, and then never again. If you fall into the latter category, it may be time to hit the delete button.
When mobile apps aren’t being used, but are still hanging out on your smartphone, tablet, or another device, it’s hard to tell if you are at risk should a data breach or other issue take place.
Many fintech applications require a user to hand over their bank login credentials so they can work properly. This process is common, but it also poses several security concerns.
Consumers may find it hard to figure out who’s at fault if a data breach happens. Was it the app, your device, or the bank? When a budgeting or saving app isn’t being used, does the app still have ongoing access to bank account details? Without reading all the fine print it’s sometimes hard to tell.
If these privacy concerns keep you up at night – or, at a minimum, have crossed your mind – delete the mobile app you no longer use and deactivate your account. You’ll be taking one small but very significant step toward protecting your personal finance information.
If nothing else, this will also free up space and resources on your mobile phone or another device for the things you actually use.
2. Avoid Keeping Financial Documents You Don’t Need
Another strategy to help clean up your digital life is to evaluate your level of document hoarding. Most people have several hundred to several thousand documents with personal finance information saved on their computers.
While some of these files may be helpful to keep, like e-filed tax returns, loan documents, or year-end statements from credit cards or bank accounts, most others can be deleted for good.
In today’s tech-empowered world, financial institutions are required to keep copies of many crucial documents should people need them in the future. You shouldn’t need to store everything that comes your way. Check with each company first to be sure.
For the items you do need to store, create a folder to help organize what you keep and transfer saved documents there. Get rid of the documents that aren’t necessary, including those automatically saved to your download folder.
This will help de-clutter your digital life while reducing the risk of data theft should your computer be 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
Nearly all companies that do business online encourage visitors to sign up for a newsletter, deals, discount alerts, and other electronic communications that are conveniently delivered to your e-mail address.
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 or helpful.
It’s common to simply delete e-mails when they arrive if they don’t serve a purpose, but unsubscribing is often a better choice. Go through your spam folder to see what you can move or opt out of, and be diligent about doing the same for new e-mails that come in this year.
Just be careful not to unsubscribe from illicit spam emails.
4. Update Your Website & App Passwords
One of the simplest steps you can take to start fresh in the New Year is to update your website and app passwords. Think about the apps you use and websites you visit regularly, including your online banking provider, credit card or loan accounts, and e-mail accounts, and change your password if it’s been some time since the last update.
To ensure your data is more secure across the board, also consider the sites you don’t use frequently. Maybe that includes an online retailer or a news outlet. If you’re not sure when you last changed your password, update it now and set a reminder for yourself to do it again in the future.
If you have numerous passwords, consider using a password manager, or look into other ways to manage and store passwords.
5. Boost Your Security Know-How by Reading Agreements
Finally, think about which companies or sites have your personal information above and beyond your e-mail address and name, and put in some time to learn about their privacy practices.
We all know our data is valuable, but most of us are less aware of how organizations use that data once they retrieve it. Each organization that captures data from its users must provide some form of an agreement or terms of service – typically it is several pages of fine print that none of us take the time to read through.
Go back to those agreements (most can be found online after a minute or two of searching) and beef up your security knowledge by reading, or skimming, through the terms. If you see something you don’t like opt out or deactivate your account altogether.
Final Thoughts on Cleaning Up Your Digital Life to Protect Your Finances in the 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 new year.
