Take inventory of your digital life
You can’t protect your most sensitive information if you don't know exactly where it lives. The first step to security is organization. If you are ever the victim of a breach, having a clear list of your accounts makes recovery much faster.
Start by making a comprehensive list of your financial life. This includes earnings, workplace benefits, taxes, savings, debts, investments, and estate planning documents. Once you have the list, prioritize the sites that hold your most sensitive data.
Ask yourself when you last reviewed these accounts. Are they accurate and reflective of your current lifestyle? If an account offers recovery protection, like a text to your phone, enable it immediately. You can also use services like haveibeenpwned, Firefox Monitor, or Google Password Checkup to see if your data has already appeared in a known breach.
Strengthen your passwords and login security
With just an email and a password, hackers can impersonate you and hijack your entire digital life. In the U.S. alone, Americans reported losing $15.9 billion to fraud and identity theft in 2025. Globally, the annual cost of cybercrime has reached $10.5 trillion. Fortunately, simple defensive measures and modern authentication can create formidable barriers against these evolving threats.
Use multi-factor authentication (MFA)
MFA makes it much harder for someone to pretend to be you. It requires two or more steps to log in, such as a code texted to your phone or an authenticator app. It might take a few extra seconds to log in, but the protection is worth it.
Use a password manager
We all know we shouldn't use the same password twice, but remembering dozens of complex codes is impossible. A password manager solves this. You can use the one built into your browser or a third-party option like 1Password, LastPass, or KeePass.
Lock down your credit
Your credit score is calculated using data stored by major credit bureaus. Scammers often use stolen info to open fraudulent accounts in your name, which can ruin that score. You have two powerful moves to stop them.
Check your reports regularly
By law, you can access your credit report for free from all three bureaus once a year. A smart strategy is to check one bureau every four months rather than all three at once. This gives you a rolling view of your credit health throughout the year.
Place a credit freeze
A credit freeze blocks access to your reports, meaning no one can open a new loan or card in your name. It is free and won't affect your credit score. You must contact Experian, Equifax, and TransUnion individually to set this up. Be sure to choose a "freeze" rather than a "lock," as locks often offer less protection and may cost money.
Update your devices and limit tracking
Hackers love to exploit flaws in old software. Manufacturers release updates to fix these holes, so you should install them immediately. Whether it's Windows, macOS, iOS, or Android, enabling automatic updates ensures you don't miss a security enhancement.
Mobile and app security
Take time to learn about SIM-swapping attacks and ask your cell phone provider about locking your account. You should also audit your apps. Turn off location services unless absolutely necessary, and keep your contact info current so apps can reach you if you are compromised.
Minimize your online footprint
Companies build detailed profiles about you, but you can limit this. Turn on "Do Not Track" settings and consider privacy-focused search engines like DuckDuckGo or Brave. Using an adblocker like uBlock Origin is also a smart move. Just remember that even a VPN can still leave you vulnerable, so don't let it lull you into a false sense of security.
Be careful with social media, too. Posting vacation photos while you are away signals to criminals that your home is empty. The larger your online presence, the more likely you are to become a target.
Avoid suspicious networks and links
Public WiFi networks, like those in coffee shops, are often insecure. Hackers can "intercept" activity on these networks, so never log in to your bank or brokerage account while sipping your latte on public WiFi.
Watch out for phishing
Phishing is when a hacker tricks you into giving up info by pretending to be a legitimate business. In 2015, an IRS hack resulted in over $50 billion in refunds stolen from 104,000 taxpayers, largely due to exploited data. Always check the sender's domain. If you get a suspicious email from your bank, don't click the link. Go directly to their website and log in there.
Emerging tech risks
New platforms like cryptocurrency and NFTs are tempting, but the technology is often unproven and lacks consumer protections. These spaces are ripe for exploitation, so understand that the risk is exponentially greater when using them.
Create a contingency plan
Even with the best defense, breaches happen. You need an emergency plan to help you or your family recover.
- Password access: If something happens to you, make sure a trusted person can access your password manager or a secure list of credentials.
- Set limits: Where possible, set limits on how much money can be transferred from your accounts.
- Offline records: Keep a list of account numbers and institution phone numbers. If you are locked out of your email, you'll need these to call for help.
How Facet helps protect your whole financial life
At Facet, we believe financial wellness isn't just about investment returns; it's about protecting what you've built. Our non-commissioned, flat-fee membership model means we are dedicated to your entire financial picture, including providing guidance on digital security best practices. When you work with a CFP® professional at Facet, you get a partner who helps you organize your financial life so you can feel confident and secure, no matter what headlines are breaking.
