6 Tips for Safeguarding Yourself with Third-Party Money Management Apps

Managing your finances with apps has become second nature for many of us. From budgeting to tracking investments, these tools make managing money easier and more convenient than ever. But with that convenience comes a need to be extra cautious, especially since these apps often require access to sensitive information like bank accounts, passwords, and even your Social Security number.

If you’re using third-party apps to handle your finances, here are six simple but effective ways to safeguard your personal information.

1. Do Your Homework

Before you trust any app with your personal and financial information, it’s important to do a little research. Yes, reading the fine print can sometimes be a bit tedious, but it’s worth understanding how an app will use and store your data. Look for reviews online, check for any data breaches, and make sure the app has strong security protocols. An app that’s transparent about its privacy policy and encryption methods is always a good sign.

2. Create Strong, Unique Passwords

We hear this advice all the time, but that’s because it works: strong, unique passwords are key to keeping your accounts secure. Avoid reusing passwords, and create combinations that include uppercase and lowercase letters, numbers, and symbols. If remembering all your different passwords feels overwhelming, consider using a password manager to store them securely. Don’t forget to enable two-factor authentication (2FA) when available—it adds an extra layer of protection that’s worth the extra step.

3. Keep an Eye on Your Accounts

Once you’re using a money management app, it’s important to make a habit of regularly checking your accounts. This includes your checking, savings, credit cards, and any other financial accounts. This way, you can spot any unusual transactions or suspicious activity as soon as possible. It’s also a good idea to check your credit reports now and then to make sure no unauthorized accounts have been opened in your name.

4. Keep Personal Info Private

It’s tempting to write down passwords or other sensitive information so you don’t forget them, but avoid leaving them in easy-to-find places like sticky notes or your phone’s notes app. If you need to store them somewhere, use a password manager to keep them encrypted and safe. Also, if your bank offers paperless statements, consider signing up for them. This reduces the risk of your financial details being stolen through mail fraud.

5. Back Up Your Data

Even the most secure apps can have vulnerabilities. To protect yourself in case of a data breach or technical glitch, regularly back up your financial data. Whether you store it on an external hard drive, in the cloud, or on a thumb drive, having access to a backup ensures that you can recover important information quickly if something goes wrong.

6. Secure Your WiFi Network

If you’re managing your money from home, make sure your WiFi network is protected with a strong, unique password. And be cautious when using public WiFi, like at a coffee shop or library. Public networks are much less secure, and it’s easier for hackers to access your data. If you need to access financial apps on the go, consider using a virtual private network (VPN) to keep your information encrypted.

Stay Vigilant

At the end of the day, using third-party money management apps can make your financial life a lot easier, but security should always be top of mind. These tips can help you minimize risks and keep your personal information safe. Remember, protecting your accounts isn’t a one-and-done task—it’s something that requires ongoing attention to keep your finances secure in our digital world.

Secure Your Financial Future Today with iLock360

Here at iLock360, we’re committed to helping you protect your personal and financial information in today’s digital world. If you’re looking for expert advice or just want to learn more about how we can assist in safeguarding your data, don’t hesitate to reach out.

Our team is here to provide the tools and support you need to stay secure while using third-party money management apps as well as other digital services.

Let us help you take the next step in protecting your financial future. Contact us today!