Personal Capital is a useful financial management tool, but is you money safe and secure? Find out what security measures are taken with your data.
Discover whether Personal Capital, a trusted financial management tool, takes necessary security measures to ensure the safety and security of your money. Dive into the protective measures deployed by Personal Capital to safeguard your valuable financial information and rest easy knowing your finances are in good hands.
I think youll agree with me when I say that, for anyone looking to manage their money through a wealth management tool, safety is the ultimate feature.
If you dont feel that your money is safe, youre not going to (and you shouldnt!) use any financial aggregator or tool. Its your money and youll want it to be protected by the company you choose. Youll want to know that a platform you are using has safety as their highest priority over everything else.
I often get asked if financial aggregators and wealth management sites are safe and what measures they take to ensure user data is protected.
Whether its Personal Capital or Mint, trusting a site with your financial information can be daunting. I know the feeling very well and, before I trusted any tool with my financial data, I spent a long time making sure I was choosing the safest and most secure option on the market.
So, today, well be taking a closer look at Personal Capital security measures. Is it safe and secure to use? Should you be sharing your financial data with this financial management app?
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Yes, Personal Capital is Safe & Heres Why!
The short answer to this question is YES. Personal Capital is safe to use and track your finances, manage your spending and net worth, as well as plan your retirement.
Safety is Personal Capitals priority and the company does a lot to ensure their platform is secure for its customers. There are several reasons why its one of the most reliable financial management tools out there and why 1.7 million registered users are trusting Personal Capital with their financial data.
Lets look at each of these reasons in more detail so that you know exactly what Personal Capital does to keep your money safe.
Encrypted Data
With Personal Capital, your data is protected both at rest and in transit. Heres why:
- AES-256 encryption. The company uses AES-256 encryption, which is the gold standard determined by NIST (the United States National Institute of Standards and Technology). In theory, it isnt even crackable because the combinations of keys are massive. So, when you enter your bank information into Personal Capital, they encrypt it with AES-256 multi-layer key management, and that includes rotating user-specific keys and salts (random data used to safeguard passwords). And if you need more reassurance, youll know that AES-256 is at the top of the game because it is used by most major banks, brokerages, and even the US Government.
- No stored credentials. Personal Capital never store your login details that data is encrypted and stored at Envestnet Yodlee a specialist platform which powers many financial services and wealth management companies. The platform is regularly audited by the Office of Comptroller of the Currency. Heres more information about Yodlee security processes.
- Internal access controls. This means that no-one working at Personal Capital can access your credentials. Its completely off-limits.
Secure Connection
Your communication with the tool is also protected. Heres how:
- Strong encryption. Yup, encryption plays a role here too. All your online interaction with Personal Capital is encrypted, meaning that your data can safely get to Personal Capital servers without anyone taking a sneaky peek. Because it is encrypted, no hacker will be able to decipher what youre communicating with Personal Capital servers.
- Enforced server-client integrity. Personal Capital requires its clients to use highly secure protocols. They prefer TLS 1.2 but also support TLS 1.1 and TLS 1.0. No less secure TLS or SSL protocols are allowed.
- Robust 2-factor authentication. Personal Capital requires 2-factor authentication, meaning that if you log in from a new or unknown device, you will need to confirm that its you via your phone or email (your choice). They also have extra mobile protection on iPhone with Touch ID authentication and mobile-only PINs on Android and iOS. Its something every financial institution should have to confirm your identity but, surprisingly, many banks dont.
Fraud Protection
Now lets look at how well Personal Capital protects customers against fraud.
The good news is that you can quickly detect any suspicious activity on your accounts. Heres why:
- All your accounts in one place. Linking all accounts allows you to get an accessible overview of all your financial accounts, so identifying fraud is easier. You dont need to review multiple accounts one after another to find where the source of suspicious financial activity is its all accessible on one dashboard.
- Daily Transaction Monitor. Personal Capital monitors all your transactions and allows you to request a Daily Transaction Monitor email listing all your financial activity seen that day. You dont have to wait until the end of the month to review your statement but can review it daily to ensure the highest level of protection. Thats a bonus because looking at transactions across all your accounts from weeks ago can be taxing and time-consuming. You probably wont remember many of them, so identifying fraudulent activity becomes more difficult.
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Personal Capital is Safer Than Your Bank
Yup, I said it and I mean it. Personal Capital does everything your bank does and more.
The truth is that, because it is read-only, Personal Capital isnt an appealing target for hackers you cant transfer funds from one account to another, so accessing it could be seen as pointless.
Personal Capitals 2-factor authentication is something not all banks have and it does provide an additional layer of security. Having robust authentication is a crucial element in keeping your data safe.
Their top-level encryption is reliable and provides peace of mind to anyone considering linking all their accounts via Personal Capital.
And, because you never really have to enter your bank credentials when logging in to Personal Capital, that never gets transmitted. So, if a keylogger or malware compromise your computer, your accounts remain safe.
Is Personal Capital 100% Secure?
As much as we praise Personal Capital for what its doing to ensure your data is safe, the truth is that nothing out there is 100% secure.
Personal Capital takes security seriously and is doing a lot to protect your data but no tool or bank is 100% safe. There always remains a small chance that hackers could attack a tool or platform youre using.
Thats just one of those things we have to come to terms with in the digital society we live in or else well be keeping a stash of cash under our beds for the rest of our lives (which is also not the safest option!).
Protect Yourself From Hackers & Cyberattacks
Its a make-or-break feature and a major concern for customers worldwide. There were several major cyberattacks in 2019 and, unfortunately, many more are probably yet to come. While many companies have cybersecurity strategies to keep your data safe, there are also things you can and must do to protect yourself from cyberattacks.
Heres how:
- Regular reviews. Regularly review your financial accounts so you can spot any unusual activity as soon as it happens and prevent it from happening again. With Personal Capitals dashboard, you can easily track your transactions and spot anything unusual.
- Choose good passwords. Strong passwords are really important if you want to stay safe in the digital world. The most important, perhaps somewhat surprisingly, is the password to your email because if hackers get that right, they could use the forgot my password function to find out the passwords for all other accounts. Choose a password that uses a combination of upper case and lower case letters and is at least eight characters long. Dont use consecutive numbers, words like monkey, or derivatives of your name. If you do choose to use a word, misspell it as much as you can itll be so much harder to guess. And never write them down, or share them with anyone.
- Never ever click on suspicious emails. Thats a given but youd be surprised how many people still fall for this! Just opening a spam email is a way in for fraudsters. If you dont know the sender, or it looks at least little suspicious dont open it. It should automatically go to junk folders but if it doesnt, youre the one who has to make that call.
- Perform regular backups. If a ransomware attack happens, youll be pretty pleased if your files are backed up (and very frustrated if theyre not). Dont risk losing all your files and data back them up regularly.
- Use up-to-date software. Make sure your software isnt outdated, particularly when it comes to operating systems. Most updates come with security improvements that could be very useful. Developers are working hard to continually feed their software with updates that fix bugs and additional cybersecurity measures so, make the most of it.
Your Money is Safe with Personal Capital
So, there you have it. Now you know whether Personal Money is safe and secure to use and why.
When choosing a financial aggregator to help you manage your finances more effectively, it is crucial to pick a company which prioritizes security. The company needs to prove to you that they are taking smart actions to make sure your financial data is safe and secure and that they are going above and beyond to ensure that this security isnt compromised.
The best way to do so is by using multiple layers of security, which is what Personal Capital does to ensure that your data and money is safe, and your information completely private.
That said, we also need to accept that nothing is 100% safe as well as play our part in protecting ourselves against cyberattacks.
When it comes to my financial management, I feel comfortable using Personal Capital but whether you decide to do the same is entirely up to you. I believe they have a high level of data protection, and I dont feel worried about their security when it comes to managing my finances.
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If you want to learn more about Personal Capital, why not check out my Personal Capital review?
Alternatively, check out my Personal Capital vs. Mint comparison to find out which tool is more suitable for your financial management.
Thanks to Source: https://millennialmoney.com/is-personal-capital-safe
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