Chapter 5.

9 : Monitoring Financial Statements

Financial vulnerability :
Financial risk is the possibility of losing money due to factors beyond your control. In the
context of cyber security, financial risk can come from a variety of sources. For
example, you may lose money if your bank account is hacked and someone steals your
money. Or, you may lose money if you're the victim of a phishing scam and you provide
your financial information to a fraudster.

No matter how it happens, financial risk is a serious problem. Not only can it lead to
financial loss, but it can also cause psychological distress. And, in some cases, it can
even lead to identity theft.

How to reduce financial and reputational risk :

There are a few key things you can do to reduce your financial and reputation risk
online:

1. Use strong passwords and Two-Factor Authentication: 

One of the best ways to prevent unauthorized access to your accounts is to use
strong passwords and enable Two-Factor Authentication (2FA). Strong
passwords are long, complex, and unique. They should be at least 8 characters
long and include a mix of uppercase and lowercase letters, numbers, and
symbols. And, if possible, you should use a different password for each of your
accounts.

2. Be careful what you click on: 

Another way to reduce cyber incidents and malware vulnerabilities is to be

careful about what you click on. This includes links in emails, social media
messages, and online ads. If you're not sure whether a link is safe, don't click on
it. And, if you're ever asked to provide your financial information, be sure you're
on a secure website before entering any information.

3. Maintain Device Security :

Security software packages with antivirus, anti-spam, and spyware detection

features are a must if you engage in online financial transactions. Use up-to-date
computer security software, and configure the software for automatic updates
and patching. For all devices, install security updates as soon you receive an
update notification. Check your computer hardware and software provider's
 websites for tips to check and improve the security of your system. And if you’re
considering storing your personal financial information in the cloud, research the
provider and its security policies thoroughly. Verify that they use MFA and data
encryption, and be sure you understand the terms of service, including all costs,
before you sign an agreement.

4. Use Your Own Device: 

If possible, avoid using public computers or devices that aren’t yours to access
your financial accounts. Public computers might contain software that captures
passwords and PINs, which others can then access. If you do use another
computer, be sure to delete your "Temporary Internet Files," or "Cache," and
clear your "History" after you log out of your account. And use strong passwords,
passphrases or biometrics to protect not only your mobile devices but also any
financial apps you use.

5. Browse Carefully:

When you access your financial accounts online, make sure that you’re on a
secure site. A secure website address starts with "https" instead of just "http" and
has a key or closed padlock in the status bar. Avoid multitasking on multiple
webpages when logged into your accounts; if you must visit another site, use a
different browser. Otherwise, you potentially expose yourself to “session
stealing.” And when you’re done, always click the "log out" button to terminate
access to your account. If you simply close your browser or type in a new web
address, other users might be able to reenter the site and view your financial
information.
6. Avoid sending financial or sensitive information via email :

Since it’s not encrypted and can be intercepted by hackers and used to raid your
account.

7. Be Cyber Safe When Using Wi-Fi: 

Many public hotspots, such as wireless networks in airports, hotels and

restaurants, reduce their security settings so it’s easier for individuals to access
these networks. However, this also increases the possibility that someone could
intercept your information. Some hackers will even create their own public
networks with familiar-sounding names to lure in unsuspecting internet-seekers.
Red flags include slow connections or networks that don't ask for you to agree to
their terms of service. Wait until you can access a trusted, encrypted network to
access your financial accounts. And when using Wi-Fi at home, secure your
network with the strongest available encryption and a strong password.
 8. Use a VPN: 

A VPN, or virtual private network, is a tool that can help to protect your online
privacy. A VPN encrypts your internet traffic, which makes it more difficult for
hackers to intercept your data. Additionally, a VPN can help to hide your location
and make it more difficult for companies to track your online activity.

9. Monitor your accounts: 

Another way to reduce your downtime due to a data breach is to monitor your
accounts regularly. This includes checking your credit card and bank statements
for any suspicious activity. Be sure your financial institution has your current
contact information and that you regularly receive statements. If you see anything
that doesn't look right, report it to your financial institution immediately.

10. Know your rights: 

Finally, it's important to know your rights when it comes to financial risk and cyber
security. Under the Fair Credit Billing Act, you're only responsible for the first
$50 of fraudulent charges on your credit card. And, under the Electronic
Funds Transfer Act, you're only responsible for the first $50 of unauthorized
charges on your bank account.

While these laws offer some protection, it's still important to be vigilant about monitoring
your accounts and reporting any suspicious activity.

By taking these steps, you can help to reduce your financial risk and protect yourself
from potential cyber threats.

Reference:
1. https://www.nedigital.com/en/blog/financial-and-reputational-benefits-of-a-cyber-
security-management-plan
2. https://www.finra.org/investors/insights/cyber-safe-financial-accounts
3. https://www.bankrate.com/banking/protect-accounts-from-hackers/
4. https://www.cyber.gov.au/protect-yourself/resources-protect-yourself/personal-
security-guides/personal-cyber-security-first-steps