Using the same password across multiple accounts puts retirees at particular risk. If a hacker steals that password, they gain access to email, banking, Social Security, Medicare, brokerage accounts, and shopping rewards accounts all at once.
The danger is real for 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.
Recovery from financial fraud proves harder for retirees than younger people, since retirees have shorter time horizons before they need their saved and invested money.
Your email account is especially critical to protect. If a hacker gets into your email, they can reset passwords for banks, brokerages, retirement plans, credit cards, health care portals and other accounts.
The solution is straightforward. Give all your accounts unique, strong passwords made of unpredictable sequences of letters, numbers and characters.
Password manager tools can store these passwords for you, so you don't have to memorize them. You can also add multi-factor authentication, which requires you to type a code sent to your smartphone, email or authentication app after entering your password.
Start by changing passwords for your most important accounts first, then work down the list. Receiving a code without attempting to log in may signal that your account is compromised. Change your password right away if that happens.
The Federal Trade Commission offers identity theft resources for people who become victims. Retirees can also share account access instructions with trusted contacts for emergencies.