Getting Your Digital Health in Order for the New Year

What’s in this article:

• Give your passwords a checkup
• Turn on multi-factor authentication (MFA) or two-factor authentication (2FA)
• Freshen up your devices
• Lock down your financial accounts
• Stay alert to scams and social engineering

The New Year is a typical time to review your budget, savings, and investment plans. It is just as important to review the digital side of your life.

Most of your financial world now sits behind a few passwords and the devices in your pocket and on your desk. A bit of “digital housekeeping” once a year can go a long way toward protecting your accounts, your identity, and the financial plan you have built.

Below is a practical guide to getting your digital health in order.

Give Your Passwords a Checkup

For many people, passwords are the weakest link. The goal is simple: make them harder to guess and impossible to reuse.

Focus on three ideas:

• Length over symbols
  Use long passphrases rather than short, complicated strings. Something like “mint-river-harbor-orange” is easier to remember and harder for a computer to crack than a short mix of symbols. Aim for at minimum 16 characters for important accounts. If you want more complexity, you can combine passphrases with symbols.
• One account, one password
  If one company is breached and one password leaks, you do not want that same password working anywhere else. Use different passwords for every account you sign up for.
• Use a password manager
  A password manager is a secure vault that stores all your passwords for you. You remember one strong master password, and the software creates and fills in long, unique passwords for each site. This is how many people manage dozens of strong logins without writing them on sticky notes or reusing them.

Turn on MFA or 2FA for All Available Accounts

Even great passwords can be stolen through data breaches, malware, or convincing scams. Extra verification can stop someone in their tracks even if they know your password.

This is usually called multi-factor authentication (MFA) or two-factor authentication (2FA). After entering your password, you confirm it is really you using:

• A temporary code sent to you
• An authenticator app that generates codes
• A prompt that appears on a trusted device
• A physical security key you tap or plug in

Make sure you are using this feature anywhere it is offered, starting with:

• Email accounts
• Banking and credit card accounts
• Investment, brokerage, and retirement accounts
• Cloud storage and password managers
• Major shopping and payment apps

If you have a choice of authentication methods, app-based codes or hardware security keys are generally more resilient than simple text messages. Whichever method you use, store any backup codes offline in a safe place so you can still get in if you lose your phone.

Freshen Up Your Devices

Your phone, tablet, and computer are the front doors to your digital life. If they are out of date or cluttered with old software, it becomes easier for attackers to find a weak spot.

Take time early in the year to:

• Turn on automatic updates
  Make sure your operating system, browser, and important apps are set to update themselves. Many attacks take advantage of older versions of software that never received security fixes.
• Remove what you do not use
  Delete apps you no longer need and browser extensions you do not recognize. Each unnecessary app is another potential opening into your device.
• Lock and encrypt your devices
  Set a strong PIN, password, or biometric lock (fingerprint or face) and have your screen lock automatically after a short period of inactivity. Most modern phones and computers support built-in encryption so that if the device is lost, the data is still protected. Make sure that feature is turned on.
• Back up important information
  Keep copies of key documents, family photos, and other irreplaceable data. This can be a reputable cloud backup service, an external drive, or both. Backups protect you against hardware failure, theft, or ransomware.

Lock Down Your Financial Accounts

From a financial perspective, the goal is to make unauthorized access unlikely and to have the ability to catch problems quickly if they occur.

Use a short routine for your core accounts:

• Unique logins and MFA
  Your brokerage, bank, and retirement accounts should each have their own password and multi-factor authentication. Avoid sharing credentials across institutions.
• Turn on alerts
  Many firms let you receive alerts for new logins, large transfers, or profile changes. Turning these on gives you early warning if someone is trying to access or change your account.
• Review statements
  When you review financial statements, look for small, unusual transactions, changes to linked bank accounts, address changes, or new features you did not request.
• Avoid risky networks
  When accessing financial accounts, use your home network or mobile data when possible. Public Wi-Fi in hotels, airports, and cafes is more vulnerable. If you must use public Wi-Fi, keep the session short and avoid large transfers or major changes to your accounts.

If you spot anything odd, contact the institution immediately using its official app or published phone number. Note the date, time, and individual you spoke with.

Stay Alert to Scams and Social Engineering

Many successful attacks rely less on technology and more on persuasion. This is called social engineering. The idea is to get you to do something you likely don’t want to do, such as revealing a password or sending money.

Common patterns include:

• Messages that create urgency
  For example: “Your account will be closed today” or “Your funds are frozen, act now.”
• Unexpected security messages
  Emails or texts that say “verify your account” or “confirm this login” when you were not doing anything with that account.
• Requests for sensitive details
  Anyone asking for your password, full Social Security number, full credit card number, or one-time codes through email, text, or phone.
• Sudden changes in payment instructions
  For example, an email from a familiar contact telling you to send a wire to a new account or to pay a large bill using gift cards or cryptocurrency.

When in doubt:

• Stop and slow down
• Do not click the link in the message
• Use a known phone number or website to check the situation
• Be cautious when money movement or sensitive information is involved

Conclusion

Keeping your digital health in good shape is not about being perfect or becoming a technical expert. It is about building a handful of reliable habits that quietly protect your financial life in the background. A few focused hours at the start of the year can pay off in peace of mind all year long. Connect with your Coldstream Wealth Manager if you have questions or concerns related to cybersecurity or topics mentioned in this article.

Coldstream materials are not intended to provide, and should not be construed to constitute, complete accounting, insurance, investment, legal, or tax advice. Questions and comments may be directed to your advisor. Coldstream does not provide any specific tax or legal advice; you should consult your tax, legal, or other advisors before implementing any changes to your current financial situation.

Financial Paraplanner Qualified Professional™ and FPQP™ are trademarks or registered service marks of the College for Financial Planning in the United States and/or other countries.