Cautions in a digital world

It is almost impossible to function today without some connection to the digital world, be it a cell phone, some smarter than others, a computer, or tablet. While the benefits are numerous, there are some cautions that retirees should be aware of.

Password explosion

The internet has made it possible to conduct virtually all your financial transactions online, and many retirees do just that. While this is very convenient it comes at a price – an explosion of passwords and user IDs. This might not be much an issue if you could use the same password for all the accounts but that is frowned upon.

So, to operate safely in the digital world with all your passwords you need to:

Create strong unique passwords
Have some method of safely keeping track of the passwords
Inform your spouse or executor how to get access to your passwords when you become incapacitated or die

Learn how to manage passwords

Internet and phone fraud

The digital world has made it easy for fraudsters to contact you and ply their trade. Internet fraudsters and phone scammers are everywhere. They come up with innovative tricks to cheat people and wipe out their bank accounts.

Phishing is a common method used by fraudsters to steal your identification and personal information. Fraudsters "phish" for your personal information by sending you emails or phoning you and posing as:

Your grandchild, who says they are in a crisis situation and need financial assistance. The phone number may look legitimate, as the scammers can "spoof" the caller ID.
A genuine or reputed company with something to sell you.
One of your service providers, e.g., Microsoft, with claims your account is about to be closed, etc..
A federal or state government agency, e.g., Social Security, FBI, IRS, saying there are problems and they may have to issue an arrest warrant.
A technician with Microsoft / Apple who claims he has noticed your computer has a problem he wants to help fix, e.g., the computer is sending out spam.

The primary intention of sending those emails or making those phone calls is to steal identification or to get you to send money. Emails usually have a link or attachment. If you click on those links, you will be taken to a fake website. The fake website will ask you to provide your sensitive information like card details, PIN, and other bank details. Also, clicking on such links can lead to a virus attack on your computer.

Minimize your risk

Know that reputable companies and government agencies do not send out threatening emails. Technicians do not contact you out of the blue. If you think the email might be real, use your browser to find the address of the company or agency and go there directly, never use the link supplied. Such emails should be deleted immediately.
For phone calls from unknown sources or that sound suspicious keep your conversation to a minimum until you know who is calling, e.g., say hello and then listen. If the caller wants to fix your computer or wants you to send money, hang up. If you engage in conversation, the fraudsters can record your voice and hence steal part of your identification.
See the last part of the ASURA's January 2021 seminar on "Email, Tech Tools and You" for some ideas on how to avoid getting phished.