Highlights:
- Digital money management may be more convenient than traditional methods, but it also requires additional security considerations.
- Carefully review the terms and conditions page and look up online reviews for any money management software you choose to use.
- Get into the habit of regularly checking all of your accounts to ensure there is no suspicious activity.
- Treat online account security as a continuous and necessary step in your financial journey.
The internet is full of tools that can help you manage your finances, from budgeting apps to tax software and online banking. Digital money management may be more convenient than dealing with physical bills, but having to plug in your bank account information, Social Security Number and other personal data can make some users think twice.
Here are six common ways to help better protect yourself when using third-party money management resources:
Research the tools you use.
Though reading the fine print for every app you use may seem tedious, it's a good idea to do a bit of research before you enter your bank account information to any website or app. Review the terms and conditions page and look up online reviews of the providers from reliable sources.
Create unique passwords.
This one may seem obvious but it's important: create unique, secure passwords for all your various accounts. You may want to try using “passphrases,” or multiple words strung together, and be sure to include numbers, symbols and both lowercase and uppercase letters for additional security. Be sure to change your passwords frequently and, if available, enable additional security measures such as two-factor authentication, fingerprinting and facial ID.
Monitor your accounts.
Get into the habit of regularly checking all of your accounts — credit cards, checking, savings and anywhere else you keep your money or make financial transactions — to ensure there is no suspicious activity. You can create a myEquifax™ account at myequifax.com to get six free Equifax credit reports each year. You can also get free weekly Equifax credit reports from the three nationwide consumer reporting agencies (Equifax, Experian and TransUnion) through April 2022 at www.annualcreditreport.com. Review each credit report and look for false or fraudulent activity, as that could be a sign of identity theft. If you discover that you may be a victim of ID theft, file a complaint with the Federal Trade Commission by going to identitytheft.gov, where you'll receive a personal recovery plan to help you move forward.
Keep private information private.
Though it can admittedly be difficult to keep track of multiple login credentials, resist the urge to keep your passwords written down somewhere obvious, such as a piece of paper on or near your computer. If you need to have your password or other account information written somewhere, make sure to store it in a secure spot that no one else can access. There are also numerous digital password managers available online that provide a much higher level of security. If you bank online, you may also want to sign up for electronic statements rather than physical paper ones to reduce the risk of mail fraud.
Back up your data.
In case of a data breach or hack, you'll want to have all of your digital information available to review. As a precautionary step, regularly back up all of your data on your phone, computer and other devices to an external hard drive, thumb drive or the cloud so you can access your documents and other information, even if the original files become compromised.
Secure your WiFi.
If you typically use the internet at home to access your third-party money management accounts, make sure your WiFi network is secured with a complex, unique password, and try not to share that information with anyone other than your family or close friends. Further, avoid using third-party money management tools, like budgeting apps, on public WiFi networks, as they tend to be less secure and could put you at risk for hacking.
When using any kind of third-party tool, be sure to treat account security as a continuous and necessary step in your financial journey. At the end of the day, the convenience of managing your money online won't mean much if those accounts are leaving your information at risk.
FAQs
Further, avoid using third-party money management tools, like budgeting apps, on public WiFi networks, as they tend to be less secure and could put you at risk for hacking. When using any kind of third-party tool, be sure to treat account security as a continuous and necessary step in your financial journey.
Is it safe to link your bank account to a budget app? ›
Further, avoid using third-party money management tools, like budgeting apps, on public WiFi networks, as they tend to be less secure and could put you at risk for hacking. When using any kind of third-party tool, be sure to treat account security as a continuous and necessary step in your financial journey.
Do budgeting apps sell your data? ›
Key insights: Nearly one-third of data collected by these apps is shared with third parties. 1 in 4 of the budgeting apps share your financial information with third parties.
Are money apps safe to use? ›
Providing they're insured, regulated by the FSCS, and have strong anti-fraud protection, P2P money apps like Venmo and CashApp are safe to use. You'll just need to be extra vigilant when entering email addresses or mobile numbers, as a wrong letter or number can stop payment reaching the right person.
Is Mint budget app secure? ›
Is Mint safe to use? Mint is a personal finance app that is safe to use. The company has safety features including multi-factor authentication and security scanning tools to keep your account and personal data safe. Does it cost money to use Mint?
Which budget tracking app is not linked to bank account? ›
The YNAB app is the best budget app if you're not interested in linking anything directly to your bank account. While YNAB does allow you to automatically sync your accounts and many people prefer to do it that way, you don't have to.
Can I trust Mint with my bank information? ›
Millions of users trust Mint with their information. That's because Mint uses the same 128-bit SSL encryption and physical security standards as your bank. Mint is also verified and monitored by online security experts at TRUSTe and VeriSign, among others.
What are the disadvantages of budgeting apps? ›
Cons of Budgeting Apps
- One App Doesn't Fit All Budgeters. When designing their apps, it's normal for companies to try and get as many users as possible. ...
- Too Many Features Can Be Overwhelming. ...
- Another Security Risk to Worry About.
In less than two weeks, the budgeting app Mint — which once had 3.6 million active users, including me — will shut down forever. According to its parent company, Intuit, Mint wasn't making enough money, so Intuit began the app's closure in January.
Are personal finance apps secure? ›
Is mobile banking safe? Yes, mobile banking is a pretty safe way to manage your finances; however, there can still be some risks associated with it, including fraud and scams. If you're careful, there are plenty of ways to protect yourself while using this incredibly easy banking method.
The Best Apps to Transfer Money for 2024
- Paypal: Best overall.
- Venmo: Best for sending money.
- Cash App: Best if you like options.
- Google Pay: Best for Google suite users.
- Apple Pay: Best for Apple users.
- Zelle: Best for sending money directly.
- Western Union: Best for traditional domestic transfers.
The money you keep in most payment apps is not Federal Deposit Insurance Corp. insured, which provides protection up to $250,000 if a federally insured bank or credit union fails. Because money stored on payment apps is generally not insured, it can be risky to use it for that purpose, the CFPB says.
Is Zelle safer than Cash App? ›
Users can obtain FDIC coverage through three of the four apps: Apple Cash, Cash App, and Venmo. (Zelle, which is co-owned by seven of the largest U.S. banks, transfers funds directly between FDIC-insured bank accounts and does not hold funds in-app as the others do, so funds are covered.)
Is Mint going away in 2024? ›
Mint will go offline March 23, 2024.
But that's far from the only option. Budgeting apps are a great way to get a grip on your finances.
Why is Intuit getting rid of Mint? ›
The reason for closing down the Mint app is the supposed consolidation of Intuit's personal finance products and to prioritize their focus on Credit Karma, which has more features and functions than Mint. However, some key features that made Mint what it is are said not to be available in Credit Karma, like budgeting.
What are the cons of Mint? ›
Pros and Cons of Mint
| Pros of Mint | Cons of Mint |
|---|
| Ease of use | Lack of investing features |
| Free to use | Intrusive ads |
| Financial summaries and alerts via email or text message | Problems with account synchronization |
| Free credit score courtesy of Equifax | Lack of bill pay feature |
3 more rowsWhen linking bank accounts isn't safe is when you give suspicious apps or services access to your bank account. If you're unsure what safety measures your bank offers, you can check online or call a branch to ask.
Is it safe to connect bank account to app? ›
(FDIC) will have built-in security measures to protect your information, some third-party apps may not be as thorough. For example, they may not offer multi-factor authentication. Linking a bank account to a third-party app means you're exposing more personal data within the app.
Should you trust budgeting apps? ›
Money-saving apps are generally safe to use, especially those from reputable developers. They often use encryption and other security measures to protect your data. Nonetheless, it's essential to research and use apps with a good track record of user data security.
Is linking bank accounts safe? ›
One reason it's safe to link bank accounts is that banks use the highest level of cybersecurity available. These security measures range from a transport security layer that encrypts data sent over the internet to multi-factor authentication requiring you to verify your identity through multiple channels.
