Please note this article is for general educational purposes. Please check your product terms and conditions from your individual provider. This article is designed to be a brief overview to choosing a secure password for your online financial accounts. You may wish to speak to a professional for more guidance and information.
How to choose a password for your financial accounts
Choosing a strong password for your financial accounts is like putting a sturdy lock on your front door. You want something tough enough to keep thieves away, but easy enough for you to remember. After all, as cyber threats become increasingly sophisticated, it is critical that you ensure your financial accounts remain protected from hackers and cybercriminals.
What is a secure password?
A secure password isn’t just a random set of letters. It’s a mixture of different elements that make it hard to guess. A secure password should be hard to detect both by humans and by computers. As a result, it can withstand diverse cyberattacks and is likely to remain secure as long as it remains private.
Why is it important to have a secure password?
Financial accounts are prime targets for cybercriminals. With access to your bank accounts, credit cards, and investment portfolios, hackers can steal your money, commit identity theft, and cause significant financial and emotional distress. Therefore, having a strong password is essential for your online security.
Five tips on how to create a strong password
When creating a strong password, you should ensure it is difficult for others to guess. This will protect your accounts and personal information from unauthorised access. Some tips for creating a strong password include:
1. Use a long password
Length is one of the most important factors in password strength. The longer your password, the harder it is to crack. Aim for at least 12 to 16 characters.
2. Incorporate a mix of characters
Look to combine uppercase and lowercase letters, numbers, and special characters (such as !, @, #, $, %). For example, instead of just opting for “Financial2024”, you could use “F!n@nc!@l2024£”
3. Avoid common words and phrases
Try not to use words that could be easily guessed, such as “password,” “admin,” or “financial.” The same goes for “password123,” as well as common keyboard patterns like “qwerty,” or “12345”. It’s also wise to avoid using your name, birthdate, or any other personal information that could be easily guessed or found online.
4. Create a passphrase
For added protection, consider using a passphrase made up of random words, combined with numbers and symbols. For instance, “Green$Dragon!Jumps7Rivers” is much harder to guess than your name followed by your birth year.
Passphrases such as these are easier to remember, but still highly secure when they’re random and include a mixture of different characters.
5. Make it unique
Use a different password for each of your financial accounts. That way, should something happen to one of your accounts, you don’t risk compromising others.
Also, consider using a password manager to help generate and store unique, complex passwords for each account. Using a password manager means you only need to remember one master password, significantly reducing the risk of using weak passwords or reusing the same ones across multiple sites
Password protection tips
There are additional things you can do to protect your passwords and make sure they stay safe. It should be common sense, but obviously don’t tell anyone your passwords! They should be known to you, and you alone.
Another step you can take is to enable two-factor authentication (or 2FA) to add an additional layer of security. This means that even if someone obtains your password, they would still need a second factor (usually a code sent to your mobile phone or generated by an app) to access your account. The majority of banks, building societies and online services offer 2FA, and it is highly recommended to enable it wherever possible.
Stay vigilant
Of course, even with the strongest passwords, it remains essential to regularly monitor your financial accounts for any suspicious activity. If they offer this service, set up alerts with your bank and building society to notify you of any large transactions or changes to your account details. Being vigilant can help you quickly spot and respond to potential threats.
Be extra vigilant regarding your online behaviour and be cautious of unsolicited emails, messages, or phone calls asking for your account details. These could be phishing scams, a common method used by cybercriminals to trick individuals into revealing their passwords and other sensitive information. So, always verify the source before clicking on links or providing any information.
Finally, although it may be inconvenient, regularly updating your passwords can significantly improve your online security. Aim to change your passwords every three to six months. Make sure each new password is different from the previous ones to prevent any guessable or predictable patterns from emerging.
Remember, choosing a strong password isn’t a one-time task. Change your passwords regularly, especially if you hear about a security breach. At the end of the day, a solid password is the first line of defence in protecting your finances, so don’t take shortcuts – stay safe and secure!
