Protecting your money from hackers

The personal and financial toll of cybercrime is severe. According to recent reports, Australian consumers lose millions annually to banking fraud and online scams. Unfortunately, victims often face significant losses, especially as hackers become more sophisticated. Beyond the monetary losses, victims often experience stress, time delays, and long-lasting credit issues.

Cybercrime also affects businesses, driving up costs in response to fraud. As wealth advisors on Sydney’s Northern Beaches, we encourage clients to take proactive steps to safeguard their finances. To protect your financial security, it is important to ensure adequate protection against cyber or hacking attacks. In this article, I will examine practical ways to protect yourself and tactics employed by online criminals.

It helps to understand how hackers think and operate. These aren’t random “bad guys”; cybercriminals are often highly skilled, motivated, and sometimes even charismatic individuals who know how to manipulate technology—and people—to get what they want. Not all hackers have the same goals. Some want money or fame, and others want control or the thrill of outsmarting complex systems.

Hackers come in various forms, each with a distinct personality type and set of motivations. Some are “script kiddies,” usually young and driven more by the thrill of breaking into systems than financial gain. They may not have deep technical knowledge but can wreak havoc using ready-made software tools available on the dark web.

Then there are the more advanced hackers: professionals and sometimes even organised groups who make a living by stealing data, identities, and money. These people have extensive knowledge of cybersecurity systems and know how to exploit even the most minor vulnerabilities. They often work with patience and sophistication, studying their targets and timing their attacks to maximise success.

Most hackers are motivated by financial gain. Whether using stolen credit card information, hijacking accounts, or running scams, they’re after a quick payout. They may employ phishing and malware to trick people into handing over login details or making unauthorised transactions. Others may be on a status ride to impress other hackers; some are endeavouring to influence a social or political cause or it could be revenge or something personal.

Whatever the motivation, any cyber attack is, at best, disruptive or, at worst, financially devastating.

Don’t be mistaken; hackers are clever. They can detect weaknesses in outdated software, unprotected Wi-Fi, or insecure passwords. This is where hackers with a technical edge thrive, exploiting holes in systems that haven’t been adequately patched or protected.

They are skilled and frequently use phishing to trick people into sharing sensitive details. Phishing emails often look legitimate, mimicking banks or service providers, and ask you to “verify” your information. Always verify with the institution directly before clicking any link or providing information. They can install malicious software to record keystrokes and capture passwords and other sensitive information. To avoid this, never download software from unreliable sources, keep your antivirus software updated, and avoid using public Wi-Fi when logging into banking sites.

Hackers sometimes hijack a person’s mobile phone number to receive SMS 2FA codes, which gives them control over the victim’s accounts. Contact your mobile provider to set up additional security questions to protect your account from unauthorised changes – And they may gather information through social media or other online sources, using this knowledge to bypass security questions or impersonate trusted contacts. Limiting the personal details you share publicly can help protect against these tactics.

Passwords are the first line of defence for online banking accounts, and simple, common passwords can be easily guessed or hacked. To create stronger protection use unique and complex passwords. Avoid using easily guessed passwords, like “password123” or birthdays. Instead, choose long, random combinations of letters, numbers, and symbols that don’t reference any personal information.

Enable two-factor authentication (2FA): 2FA requires an extra verification step, such as a code sent to your phone, making it significantly harder for hackers to gain access. Avoid reusing passwords across accounts. Each account should have a unique password. Store important information securely, using password managers rather than saving passwords in easily accessible areas like browser autofill.

Regularly update your computer, smartphone, and other devices to protect against malware and other security threats. Use antivirus software to monitor for any unusual activities or downloads. Avoid using public Wi-Fi networks when accessing online banking or financial sites, as these networks are more vulnerable to attacks.

Most banks now allow users to review recent login history. Check regularly for unfamiliar devices or locations, which could indicate unauthorised access.
By incorporating these cybersecurity measures, you’re taking concrete steps to protect your wealth from hackers.

As a wealth management firm, we invest heavily in cybersecurity and encourage clients to stay vigilant and view cybersecurity as an essential part of their financial security. It’s about protecting your hard-earned wealth from those who want to exploit it.