Protecting your retirement plan and investments from fraud and other security risks is a critical step in ensuring your financial future remains intact. With more people relying on online platforms to manage their retirement accounts, cybercriminals are continuously finding new ways to exploit vulnerabilities. What should you avoid doing and what are the best practices you should follow to safeguard your investments and retirement?

Be Mindful of the Threats to Your Accounts

Unsolicited Offers or High-Risk Investments
One of the most common ways scammers target retirees is through unsolicited offers, particularly those that promise high returns with little to no risk. These too-good-to-be-true offers often come in the form of cold calls, emails, or even through social media. They can be associated with Ponzi schemes, fraudulent securities, or “once-in-a-lifetime” investments that promise quick profits. Such scams aim to create urgency, forcing you to make impulsive decisions without proper due diligence. The best way to avoid this is to be highly skeptical of any investment that guarantees returns without any risk, as all investments come with some level of risk.

Moreover, beware of “free” investment seminars, which scammers often use to build trust with potential victims. These events are typically presented as informative and come with a complimentary meal or gift. However, they can end with high-pressure sales pitches designed to push attendees into making rash financial decisions. Always walk away from any offer that doesn’t allow time for careful consideration​.

Fake Online Profiles and Fraudulent Advisors
Scammers often create sophisticated, fake online profiles or websites that impersonate legitimate financial advisors or institutions. These profiles may come across as highly professional, featuring glowing reviews and testimonials. To avoid falling victim, never rely solely on online reviews or social media to vet financial advisors. Instead, use resources like the Financial Industry Regulatory Authority’s (FINRA) BrokerCheck or the SEC’s Investment Adviser Public Disclosure database to verify whether a financial advisor is licensed and has a clean track record.

Both of these can be signs of you being a part of a data breach where cyber criminals have leaked your private information on the dark web. Because of this, you need to be ever vigilant especially with people attempting to impersonate those brokers and investors you are working with. You may receive emails and phone calls to try to get you to verify your private information such as your social security number in order to verify your account. Remember, when in doubt, find the verified website and call them directly. If what they are calling for is real, then they will have a record of the call and information they need.

Additionally, avoid sharing your financial information or Social Security number over unsecured emails or messaging platforms. Scammers might pose as legitimate entities asking for sensitive information to steal your identity or access your accounts.

The Best Habits to Protect Your Investments

1. Use Strong Passwords and Enable Two-Factor Authentication (2FA) One of the easiest ways to protect your retirement accounts is by using strong, unique passwords. A good password should be at least 12-15 characters long and include a mix of uppercase and lowercase letters, numbers, and symbols. Avoid using easily guessable information like your birth date or a simple password like “123456.” Using a password manager can help you generate and store secure passwords across multiple accounts.

Alongside strong passwords, enable two-factor authentication (2FA) for an additional layer of security. This means that even if someone manages to steal your password, they would still need to verify their identity through a secondary method, such as a text message code or a phone authentication app like Google Authenticator. This greatly reduces the likelihood of unauthorized access.

2. Regularly Monitor Your Retirement Accounts Keeping a close eye on your retirement accounts is one of the most effective ways to catch fraudulent activity early. Many financial institutions offer account alerts that can notify you of suspicious activity, such as large withdrawals or login attempts from unfamiliar devices. By reviewing your account activity frequently, you can quickly spot any unusual behavior and take immediate action before more significant damage is done.

Also, make sure to review your account statements in detail every month. Pay attention to even small or seemingly insignificant transactions, as fraudsters often test accounts with minor withdrawals before proceeding with larger theft​.

3. Verify the Credentials of Financial Advisors Before you trust anyone with your retirement savings, it’s essential to verify that they are a registered and licensed financial advisor. Using tools like FINRA’s BrokerCheck and the SEC’s Investment Adviser Public Disclosure system, you can confirm their credentials and see if they have a history of disciplinary actions or customer complaints. You should also ensure that any financial advisor you work with follows a fiduciary standard, meaning they are legally obligated to act in your best interests​.

Don’t hesitate to ask for clear and concise information about any investment product before proceeding, and be cautious if an advisor uses high-pressure tactics or vague descriptions.

4. Diversify Your Investment Portfolio Diversification is one of the most critical principles of investing. Rather than placing all your savings in a single investment, spreading your funds across different asset classes, such as stocks, bonds, and real estate, reduces risk. If one sector underperforms, your other investments can help cushion the loss preserving your overall financial health. It’s essential to work with a licensed financial advisor to build a well-diversified portfolio that suits your risk tolerance and financial goals​

5. Never Use Public Computers or WiFi to Access Investment Accounts Accessing sensitive accounts, like your retirement or investment accounts, from public computers poses a significant security risk. Public computers, such as those found in libraries, cafes, and airports, are often shared by multiple users and may not have adequate security measures in place. These computers can be infected with malware, spyware, or keylogging software, which can capture your login credentials, personal information, or financial data without your knowledge. Even if you log out, such malware can still compromise your accounts.

To mitigate these risks, it’s best to use your personal, secure devices whenever possible and access your accounts over a trusted internet connection, using a virtual private network (VPN) for added protection if you’re on public Wi-Fi. Employing two-factor authentication (2FA) for account access adds another layer of security by requiring a secondary code in addition to your password, reducing the chance of unauthorized access.

6. Activate Identity Theft and Financial Monitoring By activating identity theft and financial monitoring, you can keep a vigilant eye on your accounts, receiving real-time alerts about any suspicious activity. This service continuously scans your financial records, credit reports, and other personal data to detect fraudulent activities such as unauthorized credit inquiries, new account openings, or sudden changes in your personal details. These early warning signs allow you to take immediate action before significant damage is done, potentially saving you from devastating financial losses or lengthy recovery processes.

Financial monitoring helps protect your retirement investments by detecting unusual transactions or withdrawals from your accounts. For retirees or those nearing retirement, even a minor breach can lead to significant losses that impact their long-term financial security. Regular monitoring ensures that any potential fraud is caught early, preventing identity thieves from gaining access to your savings or making unauthorized changes.

iDefend Can Simplify Your Cyber Security

Protecting your investments are more critical than ever, and iDefend offers a comprehensive, all-in-one solution to safeguard your personal information and assets. In addition to monitoring, iDefend provides powerful tools like a password manager to help you generate and store strong, unique passwords, as well as a VPN to encrypt your internet traffic and keep your online activity secure. iDefend’s advanced data removal services clean your personal information from websites and databases that may have exposed it, reducing your digital footprint and making it harder for criminals or third parties to access your sensitive details.

With 24/7 identity and financial monitoring, iDefend sends instant alerts if any suspicious activity is detected, allowing you to catch and address issues before they cause costly damage. These services work seamlessly to ensure your privacy is protected at all times. With a personalized protection plan and a dedicated team of experts ready to help, iDefend provides peace of mind, knowing your personal information is always secure.

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