By: Paul Morrone
Sometimes the most practical advice is the most valuable, and today I’m going to share some thoughts and a story over a topic that impacts every single person that is reading this. We’re at a point in time when data security should be a top priority for all Americans. Between the advances in AI, historic data leaks, capabilities of cybercriminals and the proliferation of online financial transactions, we are all at risk for having our banking information compromised. Speaking anecdotally from what we’ve seen with our clients, we have noticed a significant uptick in stolen bank accounts, identity theft, and people falling victim to scams targeting seniors in the past few years. It feels like we get a call once a month where we have to update an individual’s bank because it has been compromised. My suspicion is that it is not going to slow down.
Compared to the mere relative inconvenience of having a fraudulent charge on your credit card (and having to subsequently replace it with a new number), seeing fraudulent withdrawals from your bank account hits a different emotional string. And the fallout is more severe, too. Now your money is gone – not American Express’s money, or Visa’s money, your money – and you’ll need to work with the bank to get it back. This means potential police reports, frozen accounts and restricted access to your own money for a period of time. It also will result in new account numbers which means you’ll have to update all of your electronic deposits and withdrawals accordingly. A nightmare, for sure.
Banking information can be compromised in many ways, but the most common method is when cyber criminals obtain it directly or indirectly from you. You may fall victim to an online scam and provide it to a criminal. These individuals are highly convincing and have capabilities beyond your imagination to make you think they are legitimate vendors, financial institutions, or government agencies. Their tactics include fake websites, emails, texts, or calls, followed by urgent notifications or mild threats to prompt action without thinking clearly.
Beyond that, careless handling of data can put your information in the wrong hands. Emailing, texting, or sending data in an unsecured format that can be easily intercepted is a sure-fire way to make you vulnerable. This is why we use encrypted email, secure file transfer systems, and verbal confirmations whenever banking information is being transferred.
To reinforce this point, I’ll share a quick story from a colleague of mine who saw this happen first-hand. His client was closing on a property and emailed his office wiring instructions for the escrow agent. The advisor received the wire instructions, contacted the receiving bank to confirm the routing and account numbers, only to find out they were entirely incorrect – and not what the client had sent in their email. Ultimately, they discovered that the original email from the client had been intercepted, the banking details modified, and a false document was sent to the advisor. The scary part is that this all happened in real-time, there was only a couple of minutes’ delay between when the email was sent by the client and received by the advisor – certainly not enough to draw any red flags. Had the advisor not been prudent enough to confirm the instructions, a six-figure sum would have been wired away without a trace. The scale of the potential headaches for both the client and the advisor would have been monumental had this gone through.
If you think, “I don’t use technology much, so I’m less at risk,” I’m sorry to be the bearer of bad news. I’d argue the exact opposite. Those who aren’t on top of their digital footprint and data security are the most at risk for something bad to happen for several reasons. Beyond the simple unfamiliarity with the various methods that cybercriminals use to attack unsuspecting and law-abiding citizens, those who actively choose not to take ownership of their data by setting up online accounts, setting strong passwords, and actively monitoring account activity are leaving a gaping hole in their data-risk management plans.
Beyond all the tech tools, identity monitoring services, and fraud protections, vigilance remains key. Share information only with confirmed and trusted sources. Maintain the minimum number of accounts to stay organized. Avoid sharing sensitive data over unencrypted email or text. Regularly review your bank accounts and credit cards for unusual activity. If something seems off, contact your bank immediately.
Constantly monitor activity in your bank accounts, credit cards, and electronic payment systems. PayPal, Venmo, Zelle, and similar services are common Cyber threats. Ensure you use strong passwords, enable two-factor authentication, and avoid sharing codes. Keep your software updated to reduce exposed vulnerabilities and scams. Constant vigilance helps protect your digital information and money from attacker attempts.
While banking info is certainly top of mind for many, the same level of diligence should be applied to any sort of personal data, such as SSNs, and financial data. Credit cards, brokerage accounts, and even your credit profile should be considered sacred and actively monitored to ensure that your data remains yours and no one else’s.
If you ever run into an issue where you suspect that your accounts may be compromised, please contact us right away. We will help you make the required updates on our end with minimal disruption.
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