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Home Personal Finance

5 Steps to Safeguard Your Personal and Financial Information

by bullnews
March 4, 2025
in Personal Finance
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5 Steps to Safeguard Your Personal and Financial Information
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Elon Musk was seen speaking at the White House during President Donald Trump’s first cabinet meeting on February 26, 2025. Interestingly, the Department of Government Efficiency’s recent efforts to gain access to computer systems across various federal agencies like the Treasury Department, IRS, and Social Security Administration have stirred up discussions about privacy and data security.

Steve Grobman, McAfee’s chief technology officer, remarks, “There are inherent risks when sensitive data is held by a governmental body. They’re responsible for safeguarding it and controlling who can access it.” It’s key to note that DOGE is not a federal entity, and Elon Musk, despite being recruited by President Trump to lead this initiative, isn’t an official government figure. Nonetheless, DOGE has been focused on tapping into federal agencies’ IT systems to improve efficiency and reduce costs since its inception.

Critics have voiced concerns over a lack of clarity about how personal and financial data is managed and secured, although Musk asserts that DOGE’s actions are “maximally transparent.” In response, multiple lawsuits have been filed aiming to stop DOGE from accessing sensitive personal data. Cybersecurity experts stress that individuals should prioritize the protection of their personal and financial information as part of overall financial health, regardless of political happenings.

James E. Lee, president of the Identity Theft Resource Center, advises, “Regardless of who collects your data, there are steps everyone should take to safeguard their personal information.” Whether it’s a local market, a healthcare provider, or government institution, personal data carries the risk of identity theft.

Here are five practical steps from cybersecurity specialists you should consider:

### 1. Freeze Your Credit

To prevent anyone from opening accounts in your name, consider freezing your credit. By doing so, even if your Social Security number falls into the wrong hands, any attempts to take out loans or open credit cards will be blocked. Contact the three major credit agencies—Equifax, Experian, and TransUnion—to request this service. It’s a quick and free process, but if you plan to apply for new credit, ensure you temporarily lift the freeze.

### 2. Review Your Credit Reports

Frequently review your credit reports for any errors or signs of identity theft. You can obtain free weekly copies from each bureau by visiting annualcreditreport.com. You don’t need to check them weekly, but a quarterly review is wise to catch any issues early.

### 3. Download Your Social Security Statement

Need to track your earnings or get retirement benefit estimates? Make a “My Social Security” account to manage and verify these details. If errors arise, contact the Social Security Administration promptly. Setting this up now secures your account from unauthorized access.

Emory Roane, from the Privacy Rights Clearinghouse, suggests keeping backups of important documents like your Social Security statement and credit history, given the uncertainty surrounding some administrative bodies.

### 4. Use a Secure ID Number for Tax Returns

To prevent others from filing fraudulent returns using your information, apply for an Identity Protection PIN from the IRS. This unique six-digit number serves as an additional layer of verification when filing your tax returns.

Grobman of McAfee advises minimizing the number of places where you store sensitive information. “Utilizing multi-factor authentication and other ID and PIN offerings by the IRS is critical to protect access to your data.”

### 5. Go Beyond Changing Your Password

Upgrade your online security by using a “passkey”—a string of encrypted data accessible via fingerprint, face scan, or PIN. When a passkey isn’t an option, employ multi-factor authentication. Never reuse passwords.

Lee recommends using a password manager to generate and store unique passwords for each account. Free password manager tools are available from Google and Apple, and you can also find them embedded in web browsers like Safari, Chrome, and Edge.

If you’re interested in mastering financial freedom, sign up for Money 101, an eight-week course with weekly tips delivered to your inbox. It’s also available in Spanish.

(Note: The correct spelling is James E. Lee, not otherwise.)

Tags: FinancialInformationPersonalSafeguardSteps
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