Data Privacy Week: How Oversharing Online Can Cost You Your Data
Data Privacy Week (January 27-31) is a reminder that what you share online has real financial consequences. Many people post daily updates, photos, and personal details without thinking about how criminals can use that information for fraud. As social media and AI become even more prevalent, this issue has become even more urgent.
According to the 2024 Verizon Data Breach Investigations Report, over 68% of data breaches involved some form of human error, including oversharing or interacting with harmful links. These actions can open the door to identity theft, unauthorized transactions, and long-term financial damage.
“Oversharing is not only about public posts,” says Robert Cavanagh, Senior Vice President, Investments at David Lerner Associates, Inc.
“It includes the small pieces of information you give away, often unconsciously, through online forms, unsecured emails, and conversations on social platforms. This privacy breach can cost you greatly if you’re not careful.”
An FTC report shows that consumers lost over $1.9 billion to scams initiated via social‑media platforms, and that majority of people who lost money said they were contacted through social media. When you protect your personal information, you help protect your money and your long-term financial stability.
How Oversharing Puts Your Finances at Risk
A common thought people have is “Why would anyone want my information?”
Your personal information has value. Criminals seek out details like your birthdate, location, employer, and even the names of family members. These pieces of information allow them to impersonate you or access your accounts.
A single data point can turn into financial loss. When criminals gather information from your social media activity or online habits, they can create phishing messages tailored to you.
Oversharing also increases the risk of account takeovers. A fraudster only needs a few pieces of data to reset your passwords, redirect your mail, or access your credit. Once they get inside your accounts, the damage can grow fast.
Data Breaches Are Increasing
Even if you are careful about what you share, large companies and digital platforms may still expose your information in data breaches. In recent years, these events have become more frequent and costlier.
In the 2024 Verizon Data Breach Investigations Report, approximately a third of the incidents they reviewed were data breaches where the confidentiality was compromised. Topping the list was personal data, and many incidents exposed full names, Social Security numbers, and financial account details. When this information becomes public, scammers use it to open credit lines, file fake tax returns, or create synthetic identities.
Victims can spend several months recovering from major breaches, which can include clearing fraudulent charges and correcting credit reports. The recovery process also takes money and emotional energy that can delay your financial goals.
Steps You Can Take to Protect Yourself
Reducing oversharing does not require major lifestyle changes. Small adjustments make a meaningful difference.
1. Review social media privacy settings.
Limit who can see your posts, and avoid sharing details like full birthdays, addresses, or travel schedules. Criminals use this information to answer security questions or predict when you are away from home.
2.Be cautious with forms and online surveys.
Not every website needs your phone number or exact location. Only provide information when you trust the source.
3.Enable two-factor authentication on financial accounts.
This adds a secure layer that stops unauthorized users even if they know your password. You should also update your passwords twice a year and avoid using the same password across multiple accounts.
4.Monitor credit reports regularly.
Under federal law, you can access your reports for free. Reviewing them helps you catch suspicious activity early. Fraud is easier to fix when caught quickly.
Connect Data Privacy to Your Financial Wellness
Protecting your information is just as important as managing your money. When you keep your data secure, you lower your risk of financial loss and identity theft. This protects your ability to save, invest, and build long-term stability.
Working with an Investment Counselor can also help you stay aware of your account security. They can guide you on secure communication methods and help you understand how identity theft may affect your financial goals.
Conclusion
Oversharing online can have a real impact on your financial life. The more information you reveal, the easier it becomes for criminals to target you. By staying aware of what you share and taking steps to protect your data, you build a stronger foundation for your financial wellness.
Use Data Privacy Week as an opportunity to review your digital habits. If you want help building a secure routine for managing your finances, connect with an Investment Counselor at David Lerner Associates.
Material contained in this article is provided for information purposes only. It is not intended to be used in connection with the evaluation of any investments offered by David Lerner Associates, Inc. This material does not constitute an offer or recommendation to buy or sell securities and should not be considered in connection with the purchase or sale of securities. These materials are provided for general information and educational purposes, based on publicly available information from sources believed to be reliable. We cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.