It’s easy to use the same password for email, banking, Social Security, Medicare, brokerage accounts, shopping rewards accounts and more. But while it makes logging into your accounts quick and easy, it comes with a lot of risk.
If a hacker steals your password from one of these sites, they can gain access to any of your accounts. If they can access your financial accounts and steal money, finding out can be even more difficult for retirees, who often have a shorter period of time in which to need their savings and investments than their younger counterparts. That’s why you need a better password strategy to keep your information safe.
Why password reuse is dangerous especially in retirement
If you use the same password for many of your accounts, a weak link can create a huge risk. Although financial institutions and companies are investing heavily in cybersecurity, hackers still have access to confidential information — and cybercriminals often target the elderly. Last year, the Federal Bureau of Investigation found that cybercrime complaints by people 60 and older included reports of an average loss of $38,500.
It might not be a big deal if your password for one site gets hacked and you don’t use the same password elsewhere. You can confirm that your information and money are secure, report the situation if it is not and change the password. However, if you use the same password for all your accounts, a hacker can access your bank account, make changes to your Social Security benefits, buy or take out a loan under your name and access other accounts.
You’re definitely not alone if you’ve been using the same password for all of your accounts, but it’s time to change your passwords. You can start by changing the passwords of your most important accounts and down the list. Remember that if a hacker gets into your email account, they may be able to reset passwords for banks, brokerages, retirement plans, credit cards, health care portals and anything else.
The Federal Trade Commission (FTC) has identity theft resources that can help victims. However, it is best to avoid becoming a victim at all by taking the extra time to secure your accounts.
What should retirees do?
It’s best to give all your accounts unique, strong passwords — an unpredictable sequence of letters, numbers and letters. Password management tools can store passwords on your behalf so you can have unique passwords without the hassle of logging into accounts.
You can also improve your online security by multi-factor authentication. A hacker who gets your username and password will have to type in a code sent to your smartphone, email or authentication app. Receiving a code without trying to log into your account may indicate that your account is compromised. Change your password immediately.
Retirees can share account access instructions with trusted contacts. That way, a friend or family member can access your account in an emergency.
