Avril Liljekvist: Five tips to navigate the digital finance world

As technology creates new opportunities for us to interact with financial and other services, the possibilities both good and bad can seem overwhelming.

Here are five tips you can use to navigate digital spaces safely and effectively.

Take advantage of online tools

Many companies now provide you with round-the-clock access to your financial information online.

Banks and superannuation funds have mobile apps and websites where you can check your balances, monitor payments and stay on top of your current position. While sometimes we need a call centre to deal with specific concerns, online facilities can be accessed when convenient for us.

Educational resources can teach you how to understand a superannuation statement, create a personalised budget or check what your tax should be if you change salaries.

Sites like Moneysmart provide free resources to help you work through different aspects of your finances, and information around identifying potential financial hazards.

Choose payment methods wisely

When buying online, using PayPal or credit cards can increase the possibility of reclaiming your money in case of a dispute between buyer and seller.

While a dispute resolution process can take time, and is intended to provide a fair outcome for both buyers and sellers, the process provides an additional level of security in the event of a scam or misunderstanding.

If funds are transferred directly to another bank account, it becomes more difficult to retrieve them if there is a problem.

Use multifactor authentication where possible

While complex passwords are a good first step towards keeping your financial details safe, using multifactor authentication — also called MFA or two-factor authentication — increases your security significantly.

In cases where passwords are compromised due to a breach of a company’s online security, this should prevent someone accessing your account before you’ve had time to change your password.

Enabling this wherever possible provides you with a second layer of defence against unauthorised access of your accounts.

Handle QR codes with care

As useful as QR codes are in places where we need to check in or where an online menu is available at a crowded restaurant, they can open us up to unexpected and unwanted intrusion.

A QR code instructs your smartphone to visit a particular website, which may contain malicious code. QR codes can also enable the camera or texting facility on your phone without needing your explicit permission.

Only scan QR codes from trusted sources, and be cautious about what actions or websites they may lead to.

Maintain a healthy measure of curiosity

As you’ll see in the warnings given for any reputable investment product, future returns cannot be guaranteed based on past results, and yet in investment scams a guaranteed return is often promised.

When we apply natural scepticism to such a claim, the scam then works to convince us that this time, this product is different — that the risk is low and the returns are high and nothing could go wrong. Sometimes they will even let you take money back out to convince you it’s safe.

The Moneysmart website has a terrific page on how to identify and avoid investment scams, and the first step is to bring your curiosity to the problem. Ask questions, talk to others about it and bring a healthy scepticism to the table.

Being curious is a great way to engage with concepts in a way that allows you to explore the potential positive and negative aspects of new technology, new financial products or new services.

Beware of time pressure used to rush you into a decision before you’ve had time to seriously consider what’s on offer.

The journey into engaging with digital finance can be exciting, and taking the right tools with you makes for much smoother sailing.

Avril Liljekvist is a financial adviser at Nexia Perth