In Self-Defense: Protecting Your Financial Privacy
By: How—and how well—are consumers coping with the daily threat to their financial privacy.; Source: AARP Bulletin Date Posted: 2006-03-15 08:44:00-05:00
Most people seem to make a big effort these days to protect their financial privacy. Asked how much time they devote to safeguarding their information, 60 percent say "a lot" or a "moderate" amount. Of those who use the Internet, 59 percent have anti-spyware software, and 61 percent routinely check website security policies before buying online. After a long period of enjoying the benefits of having their personal financial information easily transmitted and stored by sellers of goods and services, consumers are now being confronted by significant new threats to their financial privacy. How—and how well—consumers are coping in this environment of fear and insecurity is examined in a new AARP Public Policy Institute Issue Paper.
"Defending Your Financial Privacy: The Benefits and Limits of Self-Help," a new report written for the AARP Public Policy Institute by Robert N. Mayer, Ph.D., University of Utah, investigates the state of consumer self-protection with respect to financial privacy. After assessing the advice being directed at consumers by government agencies, privacy activists, journalists, and businesses, the report summarizes and adds to survey research findings on the actions people are taking—and not taking—to defend their financial privacy. These actions by consumers establish the context for government policy and business initiatives in the area of financial privacy because the successes of all three are interdependent.
Financial Privacy in Daily Life
The number of times a day that a consumer faces choices about financial privacy is potentially overwhelming. Sources of advice on how to safeguard financial privacy are numerous, and new ones appear frequently. Below is an excerpt from the report demonstrating the ranking of the most frequently offered pieces of advice for protecting financial privacy online and offline. To view the entire report on financial privacy, visit AARP.org's Public Policy Institute.
Most Frequently Offered Advice on Guarding Privacy Online
1. Don't give out personal information without verifying identity or initiating contact.
2. Use firewalls to prevent unauthorized access to computers.
3. Read Website privacy policies for collecting, using, and sharing information.
4. Regularly update virus protections.
5. Read Website security policies for information transmission.
6. Use difficult-to-guess passwords.
7. Properly wipe or otherwise destroy hard drive before computer disposal.
8. Give minimal personal information to Websites.
9. Get updated security patches.
Most Frequently Offered Advice on Guarding Privacy Offline
1. Shred or otherwise destroy documents containing sensitive financial information.
2. Obtain and verify credit report at least annually.
3. Send outgoing mail from a secure location.
4. Don't give out personal information without verifying a party's identity or unless you initiate the transaction.
5. Minimize personal information, especially Social Security number, on checks or forms of identification (e.g., driver's license).
6. Promptly monitor accuracy of monthly or quarterly financial statements.
7. Don't carry your Social Security number in your wallet or purse.
8. Minimize the personal information you carry with you.
9. Don't give out your Social Security number unless absolutely necessary.
10. Keep financial information at home secure from other people.
Source: "Defending Your Financial Privacy: The Benefits and Limits of Self-Help," AARP Public Policy Institute, 2006.
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