Nearly every American is aware of the lack of security at the US-Mexico border. The toxic politics around that issue make it front page news nearly every day and evening. But the other border – that of the border protection around your sensitive personal information – can be just as vulnerable.
Yes, yesterday’s TGIF 2 Minutes covered this issue. But the issue is so serious, it requires a follow-up, with practical examples and then a handful of steps readers can research or choose to take.
Compromises to personal sensitive information take place every day in a variety of forms. In the last week alone, I have spoken to people in roles as varied as,
- officers of Homeowner Associations
- experienced trust attorneys
- experts familiar with government phone security
- those whose livelihood is cybersecurity.
ALL of these individuals had recent stories of email or identity compromises that happened either at their company, department, or other place of doing business. ALL of the individuals with whom I spoke are super-sharp, conscientious, and observant people. Two common threads of identity theft involved email hacks or credit card or bank fraud. Of course, there are much more sophisticated attempts at fraud schemes beyond the scope of this summary.
What can be done by private individuals and corporate employees to prevent identity theft and financial loss?? Here are a number of solutions I recently came across*:
Personal (non-corporate) measures –
- LOCKING YOUR CREDIT at one or all three of the major credit reporting agencies – Experian, TransUnion and Equifax.
- There may or may not be a temporary “ding” to your credit when putting on a lock but unless your credit is really bad, there are minimal if any consequences to the ability to borrow money.
- Adding a security app to your cell phone or device. One that came highly recommended is NordVPN. NordVPN treats your device as a more anonymous version of itself, similar to how corporate VPNs work. Internet surfing and purchases via the protected device are made more anonymously. (This is the “NordVPN for Dummies” version of what NordVPN is.) See more at www.NordVPN.com.
- Adding additional, specific coverage to your homeowners policy (if available in your State and from your carrier) to cover expenses involved in retrieving your identity if stolen and, if available, a modest amount of lost monies. The premium on this extra coverage can be as low as $20 per year!
Personal AND an employee or business owner measures –
- BE VIGILANT WITH EMAIL. This one may be the simplest and toughest at the same time.
- IT IS TAX TIME. The most private and sensitive of information will be flying through the cyber universe.
- ASK AND MAKE SURE your CPA *only* uses secure portals for exchange of W-2 and prior years’ tax documents!!! INSIST UPON secure exchange of forms — or use the US Postal Service for mailing of hard copies — or drive the originals and hand them off in person to your CPA (where possible).
- NEVER send your account numbers or social security numbers on unencrypted email. Please tell this to your kids and grandkids.
- When transferring or wiring monies, use an established communications process that must include verbal confirmations of people involved, wire instructions and banking institutions sending and receiving the monies.
Finally, if I have learned anything in my past 35 years in financial services (and I still learn everyday) it is that:
- Voice-to-voice phone or video conversations are critical.
- Recognizing the voice on the other end is critical.
Whether the phone call is to say, “Happy Birthday” or “I need you for two minutes to confirm instructions or wire information”, that voice-to-voice phone call can be a relief and/or save tens, thousands or millions of dollars in both the simplest and most sophisticated of transactions.
*NOT an exhaustive list.
This material has been prepared for informational purposes only and is not intended to provide, and should not be relied upon for, tax, legal or accounting advice.