Protect Your $$$, Privacy & Identity —> 10 Steps

Reviewed and updated on 03/09/2025. Please notify The Wealth Collective if any of these links break, or if you have your own tips, and we’ll do our best to refresh and update content.

In a world where companies collecting your private data routinely get hacked, here are proactive steps to help keep you safe!

1. Freeze Your Credit (do it now!):

Freeze your credit with the major agencies, and keep it frozen except for brief periods when you need to apply for a mortgage or a new credit card.

Learn how to place credit freezes here. Below are the links to each agency:

Equifax

Experian

TransUnion

And here are your free credit reports which you should periodically pull and review.

2. Protect Yourself from SIM Swap Attacks:

Set up a PIN / passcode with your mobile phone carrier to help prevent bad actors from stealing your phone number and using it to gain access to your personal and financial accounts. Move away from text-based multi-factor authentication to more secure methods such as using an authentication app like Google Authenticator or Authy.

3. Use a Password Manager:

Simplify and strengthen your online security with a robust password manager like 1Password. Here’s a review of the best password managers in 2024.

4. Go Paperless:

Opt for electronic delivery of account statements. This reduces the risk of old school identity theft through stealing your physical mail, or picking through your trash or recycling.

5. Shred Paper:

Use a good cross-cut shredder and shred everything with personal information.

6. Monitor Your Accounts:

Regularly check your card and bank statements for unfamiliar charges or suspicious activity.

7. Use a Data Privacy Management Service:

Consider a data privacy management service to help scrub your data from brokers who sell (and resell…) your sensitive information. This adds another layer of protection which can add some incremental privacy…

8. Limit Social Media Sharing:

Be cautious about information you share online. Cybercriminals use social media to gather information for targeted attacks by impersonating friends, colleagues, or companies. Be skeptical of unsolicited messages or requests, even if they appear to come from familiar sources, and especially when they claim to be time-sensitive.

9. Keep Software Updated:

Regularly update your computer, smartphone, and devices with the latest security updates. Enable automatic updates where possible.

10. Set up an IP PIN & File Your Taxes Early:

Get an identity protection IP PIN from the IRS, and then provide that annually changing PIN number to your tax preparer so they can file your tax return. It also helps to file your taxes early assuming you’re able to structure your life accordingly. It’s hard for bad actors to file false returns in your name if you promptly file each year. By simplifying your life with fewer accounts, and collecting tax documents electronically, filing around mid-to-late February becomes feasible for many clients (assuming they aren’t waiting on K-1s or other required tax reporting).

While no method is foolproof, and identity theft and online scams are an ever-changing landscape, diligently following basic steps will significantly enhance the security of your sensitive data and minimize the risk of identity theft.

Follow IRS advice: “Treat your personal information like cash—don't leave it lying around!”

John Agnew, CFA, CFP®, RICP®, CLU®

John Agnew is a CERTIFIED FINANCIAL PLANNER™ and Chartered Financial Analyst based in Los Angeles, CA. He focuses on wealth management for professionals, business owners, executives and affluent retirees…

https://www.thewealthcollective.capital/
Previous
Previous

Straight from Tax Horse’s Mouth —> New 401(k) limit for 2024 of $23,000 (below age 50) and $30,500 (age 50 catch-ups)

Next
Next

Pass-through entity (PTE) elective tax - don’t snooze through 06/15/22!