Power Up Your Personal Money Defense with These Tips

Finances FYI Presented by JPMorgan Chase

Whether you’re trying to manage student loans, working on your savings, or paying bills on a tight budget, your money matters. Banks do a lot to protect your funds, but they’re not impenetrable vaults guarded by laser grids and retired Navy SEALs. Think of your security like a cyber force field: Your bank provides the shield, but you can do things to make it stronger.

Here’s what your bank does protect, where their protections might falter, and how you can upgrade your own defenses like a digital security superhero.

Level 1: The Basics: What Your Bank Shields You From

Banks take your financial security very seriously. They have teams of professionals that work around the clock to help you detect fraud, block suspicious transactions, and encrypt your data. Here’s what’s covered:

1. Unauthorized Transactions: Thanks to federal laws like the Electronic Fund Transfer Act (EFTA), you’re protected against unauthorized electronic transfers, as long as you report them within 60 days. The longer you wait, the more you might be liable for.
2. Credit Card Fraud Protection: With most credit cards, you’re only on the hook for up to $50 in unauthorized charges, and many issuers will even waive that. Plus, credit card accounts don’t pull directly from your bank balance, which gives you an extra layer of protection.
3. FDIC and NCUA Insurance: If your bank or credit union goes bankrupt for any reason, your deposits are secured up to $250,000 per account holder, per institution.

Level 2: What Banks Don’t Guard Against

Even the best-made shields can have flaws. Here are some instances where banks can’t help protect you.

1. Peer-to-Peer Payments (Venmo, Zelle, Cash App): Did you send money to the wrong person or fall for a fake online seller? Your bank likely can’t get your money back. These payments are usually treated like cash. Once it’s gone, it’s gone.
2. Identity Theft Fallout: If someone uses your personal information to take out a new loan or open a new account, it’s not always caught right away. You might be stuck cleaning up the mess and convincing banks and lenders that you’re you.
3. Password Leaks and Phishing Attempts: If you give someone your login information because of a scam email or a sketchy link, your bank may argue that it’s “authorized” access.

Level 3: How to Power Up Your Personal Cybersecurity Force Field

Ultimately, you’re the commander of your own financial ship. Consider activating these cybersecurity upgrades.

1. Enable Two-Factor Authentication (2FA): This is like putting a fingerprint scanner on your digital wallet. Even if someone manages to get your password, they won’t be able to access your account without a code sent to your phone or authenticator app.
2. Freeze Your Credit: A credit freeze stops identity thieves from opening new accounts in your name. You can unfreeze it anytime if you need to apply for a loan or a new card. Think of it like locking down your base while you’re off saving the world.
3. Use a Password Manager: Stop recycling that one password from high school. A good password manager will generate and remember strong, unique passwords for every account. It’s like your digital bodyguard.
4. Monitor Your Accounts: Set up banking alerts for every login or significant transaction. Review your accounts on a weekly basis. The faster you catch fraud and suspicious activity, the less damage it can do.
5. Watch Out for Scams: No legit bank will text you asking for your password or PIN. If it smells fishy, it probably is. Hang up and call your bank directly, delete that text message, or report it. It’s always better to be safe than sorry.
6. Backup Your Devices: Losing your phone or laptop shouldn’t mean losing access to your money. Make sure everything is backed up on the cloud or set up remote wipe capabilities, just in case your tech is lost or stolen.

A Strong Cybersecurity Force Field Is a Shared Effort

Your bank has the armor, and you have the instincts. Together, you’ve got a nearly impenetrable force field, as long as you stay alert and layer your defenses. Cyber crooks are evolving, but so can you. Suit up, lock it down, and stay money-wise.

Finances FYI is presented by JPMorgan Chase. JPMorgan Chase is making a $30 billion commitment over the next five years to address some of the largest drivers of the racial wealth divide.