Personal finance software has become so common that many people are not aware of the potential risks involved in using these programs. Since its creation, consumers have demanded more options and more robust functionality. Today, there is web-based software that can be accessed from any computer connected to the Internet. Unfortunately, there are many risks associated with using this type of software, and everyone needs to be aware of them before using these programs.
What are the risks?
As with any online program, personal finance software poses the risk of having your personal information hacked, including bank account information. The amount of financial information stored in online personal finance sites, there is an elevated risk of being hacked. Even if you are extremely secure with your passwords and take all necessary precautions, your account can still be compromised. It’s imperative to find a website with heavy security.
There is also the risk of losing your information. If the website server crashes or the hardware fails, you could lose all of the data you stored on the site. If the site doesn’t have a reliable backup system, you won’t be able to retrieve any of your information.
How common are these risks?
It depends upon the company you are working with. Start-up companies offering good online programs may get good reviews, but their website might not be adequately tested to prevent hackers. Established companies have obviously withstood the test of time, but that doesn’t mean they are immune. Hacking can happen to any website.
What are the long-term effects?
The worst-case scenario would be having your bank account information hacked and then your account drained. However, banks have safeguards against this, so this is rare.
There is inherent risk in storing sensitive data with online personal finance software. Always make sure that an online company has the proper encryption for transactions, and they have a backup system for data. Make a habit of changing your passwords every few months to stay ahead of possible hackers, avoid keeping all of your financial information in one place, and only list one bank account with the software. By following these safeguards, you reduce your risk of falling into a disaster.
