How to protect your banking data and online wallet data?

According to statistics, around 65.3% of Americans are now using digital banking. On the other hand, there are 3.4 billion digital wallets in 2022. And by 2026, it is expected that more than 60% of the world’s population will start using digital wallets.

Unfortunately, it also comes with a few drawbacks. Data protection is a big concern among users and data security experts. While banks invest a lot of money in security features for their apps and websites, hackers are becoming more and more creative when it comes to stealing a user's information. So how do you protect your data?

Choose an online wallet/bank that uses standard security measures

The first thing that you have to consider is the security measures used by the bank or the online wallet. Be sure that you are going with a bank that uses industry-standard security measures.

Two-factor authentication, better known as 2FA, is a good way to stop hackers from having access to your account.

It means that you will be notified on your phone if someone tries to log in to your account. You can even sign up to get an alert via email if there's suspicious activity on your account.

Create a strong password

The next basic precaution to protect your data is by having a strong password. Using your pet’s name, birthday and anniversary is a common mistake that people make when making a password.

Aside from the password itself, also make sure that the security questions are tough. It means that even if you forget your password and you have to reset everything, you are the only one who can answer these questions.

This happened to Alaska Governor Sarah Palin. The hacker revealed that he changed Palin’s email password by using her birthday, ZIP code, and the place where Palin met her husband.

So what makes a strong password? One, the longer the password, the harder it is for hackers to crack your password. You also want to mix both upper and lowercase letters. Plus, you can also use special characters.

Change your password regularly

A lot of people are guilty of using the same password for all their accounts. Now, just imagine if one account gets hacked. This compromises all your accounts. Changing your password every few months adds a layer of protection to your data. Even if someone saw your old password somewhere, this will no longer be useful.

So when should you change your password? Aside from changing passwords every three months, a good time to change your password is when you discover malware. Also, it might be a good idea to change your password if you used a public network.

Don’t use public WiFi

But as a rule of thumb, you should never use public WiFi, especially if you’re going to access your bank account or your online wallet. An encryption-free connection puts you at risk since a tech-savvy criminal can monitor all the files being shared as well as the traffic.

If you’re using an unsecured network regularly, it is ideal to invest in a good VPN. You can check out reputable VPNs such as ExpressVPN. If you’ll read the ExpressVPN review by Ari Denial, you’ll discover that this VPN has been independently audited, avoids storing personal data, and offers unlimited bandwidth.

The only problem with VPNs in general is that it tends to slow your internet connection down. However, with VPNs like ExpressVPN, you'd barely notice the difference.

Understand How Phishing Scams Work

Phishing scams are common these days. The reason why it is common is that a lot of people are not aware of how these things work. It could be an email that could lead you to a website that looks exactly like your bank’s website, or it could be a text message asking you to log in with your information. Either way, this strategy is designed for users to give away their login details without even realizing it.

Conclusion

Banks and online wallets use different strategies to mitigate the risks of data breaches among their users. Unfortunately, users need to do their part and be aware of how hackers operate. By following these tips, you get to minimize the odds that someone will gain access to your data or even steal your funds.

Check the comment section for additional information, or share what you know or ask a question about this article, by clicking the 'View or Write Comment' button below.

Note: Some of the information in samples on this website may have been impersonated or spoofed.