Your Online Security: 10 Things You Should Know

A breach of online security happens in an instant. A misclicked link, a reply to a stranger’s message or a purchase on the wrong site. Uh oh. Another case of cyberfraud.

“Fraud happens to everyone, even the smartest people,” says Phillip Reed, an asset protection attorney in Kalamazoo, Mich. “The tactics have gotten so sophisticated.” The Federal Trade Commission says 2.6 million consumers were victims of fraud in 2024, with losses of over $12.5 billion, a 25% increase from the previous year.

New developments, such as artificial intelligence and cryptocurrencies, have made cybercrime easier and more profitable than ever. With a little preparation and knowledge, you can protect your money and identity.

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1. Digital crime is costing people more

While consumers lost a record amount of money to fraud in 2024, the number of complaints remained roughly the same as in 2023. In other words, the average incident got more expensive.

“Today’s fraudsters are patient. They aren’t in a rush to get $100 from you. They’re waiting to get $100,000,” says Kimberly Sutherland, global head of fraud and identity at LexisNexis Risk Solutions.

Investment scams were the largest category of losses at $5.7 billion, while Imposter scams were the second worst category, at $2.95 billion. Someone could impersonate one of your friends or family members and request financial assistance. With AI, they can spoof voices over the phone. Online dating scams gain a victim’s trust online through what appears to be a dream relationship before asking for money.

Theft from online shopping occurs more frequently but is less expensive in terms of the per-incident loss, according to Sutherland.

2. Retirees have a target on their backs

People over 60 were the most likely age group to report internet crime to the FBI in 2023, and lost the most money. Thieves see this generation as an easier target.

“They didn’t grow up with this technology as kids,” says Reed. “It’s not that they aren’t paying attention, but it’s something they had to learn and are now facing new threats.” At the same time, retirees’ lifelong savings create a tempting opportunity for scammers.

If you have any doubts, before agreeing to buying or providing any important information, share your emails, texts and popup images with someone else — a relative or a friend who can help you determine if it's a scam.

3. Strong passwords are worth the effort

Strong passwords are a simple and effective security measure. “It’s like locking your front door at night,” says Reed.

Avoid short codes with easily guessable words, such as names, addresses and common phrases. Strong passwords are at least 12 characters long, use a mix of upper- and lower-case letters, and include numbers and symbols.

You should have different passwords for every account. And avoid writing passwords down in an easy-to-spot location, as the wrong person could peek while visiting.

If keeping track sounds like a headache, you could use software like Bitwarden and LastPass to generate and store randomized passwords for all your accounts.

Enabling two-factor authentication further secures accounts. You’ll need to verify any login through your smartphone with a call or text.

4. Be proactive with safety measures

Your phone, computer, internet browser, and other software frequently recommend updates. Stay on top of them, as these include the latest cybersecurity systems.

Check your bank accounts and credit card statements weekly for unusual activity. “Scams often start with small transactions first, so you don’t notice. Watch out for a 34-cent charge at somewhere you’ve never shopped,” says Amber Schiffert, a financial planner with TARA Wealth in San Diego. You also could set up account alerts to receive a text, email or in-app message for every transaction.

5. Watch out for imposters

Cyberthieves constantly try to impersonate legitimate services: a text message claiming that you owe money for unpaid tolls, a phone call pretending to be from your internet provider, a computer screen popup saying it needs to fix a virus, an email claiming to be from the IRS saying you owe money, the list goes on. Seventy-eight percent of people reported receiving mobile scams at least weekly, according to a 2025 survey from Malwarebytes, which sells anti-virus software.

Slow down and verify everything. Cybercriminals often insist that you must act fast — or the “deal” will pass you by or your credit score will suffer. If you receive a call, hang up and contact the organization directly. Avoid clicking on links in emails, and refrain from replying with private information. You may want to establish a family code word that you can use on the phone to verify identities in case of AI voice fraud.

6. Be wary of deals too good to be true

Cyberthieves create spoof websites that resemble the brand and appear to link to legitimate companies that aren’t. They try to collect your credit card number, cash and personal information. Before placing an order, double-check that you are on the correct retailer’s page.

The same applies to posts on social media and other online marketplaces for selling goods and services. “If you see someone selling Taylor Swift tickets on Facebook for $400 when the market value is $4,000, don’t fall for it,” says Reed, the attorney from Michigan.

7 Guard your data like cash

Your personal data can be used for identity theft. If someone asks for information to verify your account, push back and ask if it’s really needed, especially for something personal like your Social Security number.

Consider what you reveal on social media platforms. Things like your date of birth, your childhood hometown and pet names could be used to answer security questions to access your digital accounts. Thieves could also use that information to impersonate you. Considering making your social media accounts private, so only people you know see what you post.

8. How you pay online matters

Credit cards have fraud protection, backed up federal law. If you report fraudulent charges within 60 days of receiving your account statement, your liability is limited to $50.

Other digital payment methods, such as electronic checks and payment apps like Venmo, have much less fraud protection. You can try filing a formal dispute with your bank or payment app, but there is no guarantee of a refund. “Think of it like giving someone cash with these payment options. You better be sure,” says Sutherland from LexisNexis.

And if you send cryptocurrency, that’s likely irreversible given the hidden nature of these transactions. It’s no wonder that people reported losing more money to bank transfers and cryptocurrency transactions than all other payment methods combined in 2024.

9. React quickly to possible fraud

If you suspect a problem, contact the bank, credit card company or payment app immediately. “That first 72-hour window is so important. It gives them time to lock down your account,” says Reed. The sooner you act, the higher your chance of them stopping the fraudulent transaction before it goes through.

You should also change the passwords on any exposed accounts. If you provided personal information, especially your Social Security number, consider placing a credit report freeze with the three major rating agencies. “As long as you’re not trying to buy a home soon or apply for other new lines of credit, we recommend using a freeze. It’s better safe than sorry,” says Schiffert, the financial planner from San Diego.

10. Authorities want to know what happened

Report incidents of cybercrime to federal agencies through the FBI’s Internet Crime Complaint Center and the FTC.

These agencies could help you retrieve lost money and assets while taking steps to bring justice against the criminals. “People feel too embarrassed to report, but they shouldn’t. It’s how authorities and businesses learn what’s needed to protect others,” says Sutherland.

Note: This item first appeared in Kiplinger Retirement Report, our popular monthly periodical that covers key concerns of affluent older Americans who are retired or preparing for retirement. Subscribe for retirement advice that’s right on the money.

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