Keeping Your Finances Secure
Welcome to Saving Money with Andrew!
Since launching the newsletter, I’ve focused on saving money. But protecting what you have is crucial, especially when ~5 million Americans are victims of identity theft each year. Some best practices for protecting your financial info:
Use Multi-Factor Authentication
Most people don’t use two-factor authentication (using a text message code or other verification in addition to a password), even though it’s essential to protect your data.
As of 2018, fewer than 10% of Gmail users used two-factor authentication, and hundreds of millions of users still log in with just a password. It’s easy to set up on Gmail, just start with Google’s security checkup.
For additional protection, consider using something beyond text message verification, such as an authenticator app. This CNET article has links to useful instructions for most sites.
You should utilize two-factor authentication on any site with sensitive financial information, such as your credit card and bank online accounts, and on any site with important financial information, such as your email account (which is an identity theft goldmine). Although two-factor authentication with text message verification isn't perfect—a determined thief could try to access your cellphone—it will stop most attackers.
Safeguard Your Social Security and Drivers License Numbers
Most people are aware of this, but you should treat your social security and driver's license numbers with extreme caution. Thieves can use these to file bogus tax returns, apply for benefits in your name, open financial accounts, or otherwise impersonate you. It can take years to repair the damage.
Keep this info to yourself unless absolutely necessary. Most doctor's offices, for example, will ask for your social security number (usually on paper forms). I frequently "forget" to provide it, and when pressed, I simply state that I do not share it. You don't want this information to end up in the wrong hands, and the more forms that are floating around with your SSN, the more likely you are to end up the victim of identity theft.
Credit Monitoring: Generally A Good Deal Only If It’s Free
As the name implies, credit monitoring services monitor your credit, alerting you to new accounts opened in your name. While this can be useful, many of these services are expensive ($10-15/month or more), or try to upsell you on costly and unnecessary products.
On the other hand, these services are sometimes provided for free. Many employers and institutions now offer free credit monitoring services. In addition, if your personal information has ever been compromised, companies frequently offer free credit monitoring. For example, after a 2015 security breach exposed the personal information of over 79 million people, Anthem (the second-largest health insurer in the US) offered free credit monitoring through AllClear ID, one of the more reputable services. Equifax offered similar monitoring services after a 2017 data breach that exposed the personal info of 147 million people.
Don’t Get Taken In By Online Scams
At this point, most of us know not to fall for obvious online scams. But bank theft scams have become much more sophisticated. One recent example is the new “Zelle Fraud Scam”, which is surprisingly convincing and is able to steal a victim’s bank info without getting the user’s password.[1] Increasingly, scammers use information they already have about you, such as a birthday or your bank account info, to target you in a more sophisticated way. The best way to avoid these scams is to simply ignore any strange or scary emails, texts, or voicemails.
Finally, File Your Taxes As Early As Possible
Last tax season, the IRS flagged 5.2 million potentially fraudulent tax returns, with about one-third of them representing likely identity theft. You don’t want to be one of these victims—it’s a huge inconvenience, likely requiring you to hire an accountant to help you deal with it, and can delay any refunds for months or longer.
One way to lower the risk of a fraudulent return is to file your own return as soon as you can. In some cases, it’s necessary to wait (particularly if you are waiting for W-2’s or 1099’s), but in general it’s best to file as soon as possible.
And now…Andrew’s pick(s) of the week:
Peter Jackson’s The Beatles: Get Back is an incredible achievement. For Beatles fans, the documentary is easily worth joining Disney+ for a month. This clip of Paul McCartney composing the framework of Get Back (the song) in two minutes is incredible. And it’s a good litmus test—if you enjoy the clip, you’ll probably like the documentary:
Also enjoyed this week:
Why Is Movie Dialogue So Hard To Understand? (as someone who always has subtitles on, this article resonated with me)
Want to Get On a Local Version of Monopoly? It Might Take Actual Dollars.
A Journalist, a Philosophy Major and the Mad Scramble for Video Game Consoles
“It’s A Very Empowering Story” - Honeybees Survived for Weeks After Canary Islands Eruption
I hope this has been helpful. If you liked it, please share it on social media! Also, please send me your feedback, requests, and success stories.
[1] In this scam, the scammer tricks you into letting them reset your bank password so they can access your account. From there, they can quickly attempt to withdraw funds, often to purchase cryptocurrency or other difficult-to-trace assets.