Building wealth means nothing if someone steals it. Here's how to protect yourself from the most common threats.
The Threat Landscape
| Threat | How It Happens |
|---|---|
| Identity theft | Someone uses your info to open accounts |
| Account takeover | Hackers get into your existing accounts |
| Phishing | Fake emails/texts trick you into giving info |
| Investment scams | "Guaranteed returns" that steal your money |
| Card fraud | Someone uses your card numbers |
Layer 1: Freeze Your Credit
Do This
This is the most important step. A credit freeze prevents anyone from opening accounts in your name.
Freeze at all three bureaus:
- Equifax: equifax.com/freeze
- Experian: experian.com/freeze
- TransUnion: transunion.com/freeze
It's free and takes 10 minutes.
When you need to apply for credit, temporarily "thaw" your freeze.
Layer 2: Secure Your Accounts
Password Hygiene
- Unique password for every financial account
- Use a password manager (1Password, Bitwarden)
- Never reuse passwords
Two-Factor Authentication (2FA)
- Enable on ALL financial accounts
- Use an authenticator app, not SMS when possible
- SMS is better than nothing
Email Security
- Your email is the key to everything
- If hackers get your email, they can reset all passwords
- Treat email security as seriously as your bank
Layer 3: Monitor Everything
Free Monitoring
- Check credit reports at annualcreditreport.com (free weekly)
- Set up account alerts for all transactions
- Review bank/card statements monthly
Paid Monitoring (optional)
- Credit monitoring services
- Identity theft protection
- Dark web monitoring
Pro Tip
Free monitoring is usually enough if you stay vigilant. Paid services add convenience, not necessarily more protection.
Recognizing Scams
Red Flags
Watch Out
Never trust:
- "Urgent" requests for money or info
- Calls claiming to be IRS, Social Security, or police
- "Guaranteed" investment returns
- Pressure to act immediately
- Requests to pay in gift cards or crypto
- "You won!" emails (you didn't enter)
Common Scams
| Scam | How It Works |
|---|---|
| IRS impersonation | Calls threatening arrest |
| Romance scams | Online love interest needs money |
| Crypto schemes | "10x returns guaranteed" |
| Fake tech support | Pop-ups claiming virus |
| Grandparent scam | "Grandchild" in trouble needs money |
What to Do If You're Compromised
Credit Card Stolen
- Call the card issuer immediately
- Report fraudulent charges
- Request new card number
- Monitor statements
Identity Stolen
- Place fraud alert at credit bureaus
- Review credit reports for unknown accounts
- File report at identitytheft.gov
- Consider identity theft affidavit
- File police report if significant
Account Hacked
- Change password immediately
- Check for connected devices/sessions—log them out
- Enable 2FA if not already
- Review recent transactions
- Update passwords on linked accounts
The Security Checklist
Quick Win
Do these today:
- Freeze credit at all three bureaus
- Enable 2FA on email and all financial accounts
- Check if your passwords were leaked: haveibeenpwned.com
- Set up transaction alerts
- Install a password manager
These steps prevent 95% of financial fraud.
Protecting Investments
As your wealth grows, protection becomes more important. Our Wealth tier lessons cover:
- Estate planning basics — Protecting assets for your family
- Insurance deep dive — Comprehensive coverage review
The Paranoia Balance
Be vigilant, not paranoid:
- Trust but verify
- Question anything unexpected
- Take time to verify requests
- When in doubt, hang up and call the official number
Pro Tip
Legitimate companies never pressure you to act immediately. Take your time.