How millennials can lower risk of online scams

You may have heard earlier this summer that the Democratic National Committee’s computers were hacked and some very embarrassing emails were leaked, leading to the resignation of DNC chairwoman Debbie Wasserman Schultz. You may have heard too that U.S. experts suspect the Russian government is responsible. In fact, some experts even believe that the hackers deliberately left incriminating digital fingerprints to show that Moscow is a cyberpower deserving of respect.

International espionage, gamesmanship and war are now in part fought online, and national cybersecurity is vital. Homeland Security now dedicates part of its website to cybersecurity, and back in February, President Barack Obama launched a Cybersecurity National Action Plan. Last week, the White House announced Brigadier General Gregory Touhill as the first cyber security chief.

If only each of us had so much brass in our corner. Ordinary consumers have been in the trenches of cyberwarfare for years.

According to the Better Business Bureau (BBB) Institute, marketplace scams affect one in four North American households each year. These scams result in an estimated loss of $50 billion annually. I know what you’re thinking: Your heart goes out to all those old folks.

Millennials are most vulnerable

Wrong. With their lack of digital sophistication, it is widely assumed that older generations are more likely to fall for a scam. However, in a research paper called “Cracking the Invulnerability Illusion,” the BBB points out that “We are all at risk, but younger and more educated individuals are actually the most likely to be scammed.” In another recent study, the computer security software company Norton surveyed more than 17,000 adults in 17 countries. They found that 44 percent of millennials had been a victim of an online scam in 2015, compared with only 16 percent of baby boomers.

The architects of the much-heralded "sharing economy" share too much, it seems. Online scammers, employing everything from old-fashioned tricks to malicious software, find their victims through chat rooms, social media, message boards, websites and email in order to steal personal information and defraud consumers. And guess who spends the most time in those digital spaces? That’s right: millennials. Hey, just because we grew up with technology doesn’t means we’re using it correctly!

Tips for preventing cybercrime

Though in no way an exhaustive list, the following are a few basic tips from StaySafeOnline.org to get you started on protecting personal information:

• Make your password a sentence: A strong password is a sentence that is at least 12 characters long. Focus on positive sentences or phrases that you like to think about and are easy to remember (for example, “I love country music”). On many sites, you can even use spaces!
• Unique account, unique password: Having separate passwords for every account helps to thwart cybercriminals. At a minimum, separate your work and personal accounts and make sure that your critical accounts have the strongest passwords. 
• Write it down and keep it safe: Everyone can forget a password. Keep a list that’s stored in a safe, secure place away from your computer. You can alternatively use a service like a password manager to keep track of your passwords.
• Own your online presence: Set the privacy and security settings on websites to your comfort level for information sharing when they are available. It’s OK to limit how and with whom you share information.
• Get two steps ahead: Turn on two-step authentication — also known as two-step verification or multi-factor authentication — on accounts where available. Two-factor authentication can use anything from a text message to your phone to a token to a biometric like your fingerprint to provide enhanced account security.

Jennifer Pagliara is a financial adviser with CapWealth Advisors. Her column appears every other week in The Tennessean. For more information, visit www.capwealthadvisors.com.