How Internet Security Can Affect Your Credit

Thanks to the power and convenience of the Internet, we’ve moved everyday tasks, like shopping and banking, from in-person to online. While highly convenient, this means that a great deal of your personal information can be found online. The Internet isn’t the safest place for your personal information or your credit. In fact, according to a 2018 poll, nearly 60 million Americans have been affected by identity theft, or were victims of identity fraud, while 1 in 5 of these victims experienced it more than once. 

It’s up to you to do as much as you can to protect your personal information online. This can mean a number of things, from creating strong passwords to doing your best to ensure that the sites you’re using are secure. Let’s first get a better understanding of Internet security, then go over some ways that you can help protect your credit. 

What is internet safety? 

“Internet safety” refers to a variety of best practices that help protect your personal information and ensure your security on the Internet. These practices can involve anything from determining the security of the websites you visit to protecting your computer and guarding sensitive information. Because we rely so much on the Internet on a daily basis, online safety is now a more vital concern than ever. We shop online, bank online, and keep important documents online. All of this information is vulnerable if we don’t properly safeguard it. 

There are also many websites out there that don’t have sufficient safety precautions ready. Because of this, it’s on us to do what we can to keep ourselves safe. Without Internet safety, we become easy prey to hackers and identity thieves.  

What is identity fraud/theft? 

Identity fraud and identity theft are similar—they both occur when someone steals another person’s personal information and uses it for financial gain. Identity theft in particular usually refers to the theft of someone's personal information via phishing scams and malware. Identity fraud, on the other hand, typically involves a third party using said personal information to purchase items under the victim’s identity. 

Identity fraud in particular can do some serious financial damage. Identity fraud doesn’t only involve fraudulent or unauthorized purchases—it can also occur when someone takes out loans or applies for benefits under your name. This can be detrimental to your credit. 

Because so many people store and share their personal information online, anyone can fall victim to identity fraud. Identity fraud can be tough to dispute, as it’s often difficult to prove that you weren’t the one who made fraudulent transactions. Even worse, identity fraud tends to go unnoticed until it’s too late, making it more harmful. 

5 ways to keep your credit safe 

We do so many of our day-to-day tasks online. This means that more and more of our personal information is available on the Internet. For this reason, it’s crucial that you understand how to keep your credit safe. We need to do all we can to protect ourselves from identity fraud, and practicing Internet safety plays a huge role in that. 

Here are some tips that can help keep your personal information—and your credit—safe:  

1. For your most sensitive accounts, set up multi-factor authentication (MFA): Multi-factor authentication verifies that it’s truly you trying to log into your account by having you present your credentials in two different ways. This might mean putting in your password then entering a code that’s emailed or sent to you via text.  

2. Create strong, ‘best-practice’ passwords: Your password is your account’s first barrier, so it’s important to have a strong one. Avoid using your name and birthday, commonly known identifiers such as your address number or your pet’s name, and consecutive letters and numbers. The best passwords are case-sensitive throughout and include a combination of letters, numbers, and special characters. 

3. Look for browser encryption: Not all websites are secure, so make sure to check before putting in any personal information. You can do this by making sure the link starts with “https://” (the “s” means secure) or checking to see if there’s a padlock icon (which also indicates that a site is secure) to the left of the link. 

4. Don’t make purchases on unsecured networks: It’s a huge convenience to be able to log onto and use public WiFi. However, many of these networks are unsecured, meaning they are easier to hack. Refrain from making purchases while on these networks or visiting sites that require important pieces of your personal information, such as your social security number. 

5. Keep track of your purchases and credit report: One of the easiest ways to ensure that your credit is accurate is to keep track of your purchase history. By doing so, you can spot and take care of fraudulent purchases quickly. If you speak to your bank about disputing the cost soon after it happens, you have a better chance of preventing further theft from occurring. 

Don’t let identity theft happen to you 

When someone uses your identity without your permission, they don’t care how you’re affected. They may use your information to make large expenses, damage your credit, and leave you to worry about the consequences. This is why it’s so important to practice Internet safety and do as much as you can to protect your credit: 

• Make sure you’re following best practices for password protection and multifactor authentication (MFA). 

• Always look for the padlock icon and only visit encrypted websites. 

• Never make purchases on unsecured websites or public WiFi networks, such as in a cafe. 

• Always check your banking activity each month to make sure everything looks right. 

• Keep an eye out for fraudulent activity on your credit report.

Do these things regularly, practice better Internet safety, and check your bank statements. Your wallet will thank you, and you’ll be able to rest easier knowing you’re secure.