As economic data continued to show lower inflation and a cooling job market, the markets bounced back last week. While we haven’t reached the previous record high, the major market indexes are all positive year-to-date. The last two weeks have shown that markets often have short-term blips, but work in the long run.
The market roller coaster may have slowed down, but there was another upheaval on the financial front. Hackers stole the personal information, including Social Security numbers, of millions of Americans. It’s likely that most of us have been affected by a data breach at some point. And while you may choose not to use online banking or other services, your accounts are all still accessible online.
There are some steps you can take short of storing cash in a tin can buried under the hydrangea bush. The most important action you can take, and one of the easiest, is to freeze your credit. It’s important to contact all three credit bureaus: TransUnion, Experian, and Equifax. Freezing your credit will prevent anyone from opening a new account without your knowledge. The downside is that you’ll need to contact the bureaus to lift the freeze if you are applying for credit: a new credit card, car loan, mortgage, etc.
You can also make it harder for people to hack your accounts with three tactics. First, establish and use multi-factor authentication, or MFA, to log into any online accounts. This is that annoying step of having the site text you a code to verify it’s really you after you’ve logged in. It’s also a good reason to password protect your phone, and have the phone automatically lock after a set number of unsuccessful attempts to open it.
Second, use smart passwords that you change frequently. Using a password keeper last LastPass or Dashlane makes this much easier. Third, stop answering all those fun quizzes on social media. Or sharing the posts where you provide a list of information for your friends to know you better. These are often the answers to your security questions – your first pet’s name, your first car, your first job.
Beyond this, it’s important to review your credit reports and financial statements regularly. Check for new accounts, unexplained charges, or unfamiliar payments.
If your identity is stolen, file a police report. Notify your financial institutions, and online at IdentityTheft.gov. That site also provides helpful steps to take if you are a victim.
Your action item is, obviously, to freeze your credit. Remember to contact all three credit bureaus.
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CovingtonAlsina is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and, unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Past performance is not indicative of future performance.