It’s convenient 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 quicker and more convenient, it comes with a substantial risk.
If a hacker steals your password to one of these sites, they may be able to access any of your accounts. If they are able to access your financial accounts and steal money, recovery can be even harder for retirees, who tend to have shorter time horizons for when they’ll need their saved and invested money than their younger counterparts. That’s why you need a better password strategy to keep your information safe.
Why password reuse is especially dangerous in retirement
When you use the same password for many of your accounts, the weakest link can create substantial vulnerability risks. While financial institutions and corporations invest heavily in cybersecurity, hackers are still able to obtain password information — and cyber criminals often target older adults. Last year, the Federal Bureau of Investigation found that cyber crime complaints by people aged 60 and older included reports of average losses of $38,500.
It may not be a big deal if your password for one site gets hacked and you don’t use the same password anywhere else. You can make sure your information and money is secure, report the situation if not and change the password. However, if you use that same password for all of your accounts, a hacker may be able to get into your bank account, make changes to your Social Security benefits, make purchases or take out a loan under your name and infiltrate other accounts.
You’re definitely not alone if you have been using the same password for all of your accounts, but it’s time to change your passwords. You can start by changing passwords for your most important accounts and moving down the list. Keep in mind 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 people who become victims. However, it’s best to avoid becoming a victim at all by taking the extra time to protect your accounts.
What retirees should do instead
It’s best to give all your accounts unique, strong passwords — unpredictable sequences of letters, numbers and characters. Password manager tools can store passwords on your behalf so you have unique passwords without any issues with logging into accounts.
You can also boost your online security with multi-factor authentication. A hacker who obtains your username and password would then have to type a code sent to your smartphone, email or authentication app. Receiving a code without attempting to log into your account may indicate that your account is compromised. Change your password right away.
Retirees can share account access instructions with trusted contacts. That way, a friend or family member can access your account in the event of an emergency.
