Top 5 mistakes that could expose your financial data to cybercriminals

How secure is your financial information? Let's do a little test: Do you currently have a budgeting app installed on your phone? Statistically speaking, there's a good chance you do.

Mistakes like these don't just jeopardize your bank account, they can lead to devastating consequences like identity theft, mounting debt and even shattered retirement plans. I'll walk you through the five biggest mistakes that could be putting your financial future at risk, and, more importantly, how to avoid them.

This is one of the biggest pitfalls many of us fall into. There are so many things we have to do these days to keep our online security up to par. It's easy to grow complacent, essentially leaving the door wide open for cybercriminals to walk through. Here are the basics you should never forget to follow:

Enable two-factor authentication (2FA) everywhere you can, especially online accounts that hold your financial information.

When hackers compromise one account, they don't stop there. They use a technique called credential stuffing, by which stolen login details are tested on other platforms. So, if you've reused the same password for your bank account, email and favorite shopping site, one data breach can take them all down in one fell swoop.

Instead of relying on a budgeting app, consider utilizing your bank's online tools. Many banks offer built-in budgeting and expense-tracking features within their secure online banking platforms. These are typically more privacy-focused than third-party apps.  Here are some examples:

These bank-provided tools offer the advantage of being integrated directly with your accounts, potentially providing more accurate and up-to-date information while maintaining a higher level of privacy compared to third-party apps.

If you decide to stick to a budgeting app, though, make sure to check its privacy section on the App Store or Google Play, where you can see what data it collects and shares. Then, read the app's privacy policy carefully, as tedious and often deliberately overcomplicated as that can be.

When you shop on unfamiliar websites, you're sharing sensitive information like your financial data, address and contact details. If the retailer doesn't have strong privacy or security measures in place, this data could end up in the hands of cybercriminals or be sold to data brokers.

Unless you go completely off the grid digitally - no internet, online accounts or smartphones - it's nearly impossible to avoid leaving a digital footprint. Most companies collect and share your personal information, which ends up in the hands of data brokers and people-search websites that aggregate and sell it to even more third parties.

From my experience, it's easy to overlook these risks in our fast-paced, convenience-driven world. But taking just a few minutes to review your security practices can save you from a world of trouble. Don't wait until it's too late to protect yourself and your loved ones. Neglecting basic security like two-factor authentication, reusing passwords or shopping on untrustworthy websites can leave you exposed. Using finance apps that share your data, like allowing data brokers to profit off your personal information, also increases your risks of experiencing fraud and identity theft. By staying vigilant, you can protect both your finances and your loved ones.

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