Protecting Your Financial Life in a Digital World
Technology has made managing our financial lives easier than ever. We can check bank balances, review investment accounts, pay bills, and send money without leaving home.
Unfortunately, that convenience has also created new opportunities for scammers.
Retirees can be particularly attractive targets because they may have accumulated retirement savings, investment accounts, home equity, and other assets. And as technology evolves, financial scams are becoming increasingly sophisticated.
The good news is that you don’t need to be a cybersecurity expert to protect yourself. A few smart habits can make a significant difference.
Slow Down When Something Feels Urgent
One of the most common tactics scammers use is creating urgency.
You may receive a call saying there’s suspicious activity in your bank account. An email might warn that an account will be closed. Someone could even claim that a child or grandchild is in trouble and needs money immediately.
The details vary, but the goal is the same: get you to react before you have time to think.
If someone unexpectedly asks for money, passwords, account information, gift cards, cryptocurrency, or a wire transfer, stop.
Verify the situation independently before doing anything.
Don’t Automatically Trust Caller ID
Seeing a familiar company or local phone number on your caller ID can make a call seem legitimate.
Unfortunately, scammers can manipulate caller ID information to make a call appear to come from a bank, government agency, or other trusted organization.
If someone calls claiming to represent an organization you do business with, hang up and contact that organization directly using a phone number from its official website, your statement, or another trusted source.
The same rule applies to emails and text messages. Instead of clicking a link, navigate to the company’s website yourself.
Use Strong, Unique Passwords
Using one password for multiple accounts may be convenient—but it can also create a domino effect if that password is compromised.
Important accounts should have unique passwords, especially:
- Banking
- Investment accounts
- Credit cards
- Social Security and other government accounts
Consider using a reputable password manager to securely keep track of them.
Whenever available, enable multi-factor authentication. This requires another form of verification in addition to your password and can provide an important extra layer of security.
Be Prepared for AI-Powered Scams
Artificial intelligence is making it easier to create convincing fraudulent emails, images, and even voices.
That means a phone call that sounds like someone you know isn’t necessarily proof that it’s actually them.
If a family member suddenly contacts you asking for money—especially if the request is unusual—call them back using a number you already have.
Families may also want to create a private verification word or phrase that can be used during an emergency.
It may sound a little like something out of a spy movie, but if it prevents a fraudulent wire transfer, we’ll take it.
Don’t Be Afraid to Ask for a Second Opinion
Scammers often try to isolate their victims. They may tell you not to contact your bank, family members, or financial advisor.
Consider that a major red flag.
Before making an unusual financial transaction, talk with someone you trust.
If you’re ever contacted unexpectedly about your investments or asked to move money, contact your financial advisor using the phone number you normally use rather than responding directly to the request.
Protect What You’ve Built
Cybersecurity isn’t only about protecting a computer or smartphone. It’s about protecting your identity, your savings, and the financial security you’ve spent years building.
The most important habit may also be the easiest: when something doesn’t feel right, slow down.
Verify first. Ask questions. And never let someone pressure you into making a financial decision you’re not comfortable with.
At Paragon Wealth Management, we’re here to help our clients protect not only their financial future, but everything they’ve worked so hard to build.
About Jeremy
Jeremy Kerr joined Paragon Wealth with nearly a decade of experience in the financial services industry. A graduate of Temple University’s Fox School of Business, Jeremy has always had a deep interest in personal finance and helping others make confident financial decisions.
He began his career in the mortgage industry, where he developed a strong foundation in lending and client service, before transitioning to a financial advisor role in 2023. At Paragon, Jeremy combines his technical knowledge with a genuine passion for building long-term relationships and guiding clients through all stages of their financial journey.
Outside the office, Jeremy enjoys spending time with family and friends, weightlifting, and playing basketball. To learn more about Jeremy, connect with him on LinkedIn.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.
Securities offered through LPL Financial, Member FINRA/SIPC. Investment advice offered through Great Valley Advisor Group, a Registered Investment Advisor. Paragon Wealth Management and Great Valley Advisor Group are separate entities from LPL Financial.