Technology
Since the advent of the World Wide Web and the consistent improvements of computers more and more people have been taking advantage of the technologically advanced environment choosing to electronically access many accounts and as well pay for many accounts using the same interface. This is a natural symptom of providing an alternative that is cheaper and more convenient than using traditional systems of mailing out envelopes with checks or even driving to an actual location to pay for or deposit into an account.
Identity theft
The down side of all the technologically provided convenience and expedience is that for those equipped with the knowledge and possessing the capabilities to do so can also access your information.However, identity theft has been going on since long before the internet and computers have existed. But with financial planning software, now all of your accounts can be accessed from a single point; one program, one password. Does the ultra convenience and accessibility of these programs put you at greater risk for identity fraud?
On one hand the argument is made that identity theft has been going on since identities have existed. Thus technology and further accessibility to information that in aggregate comprises your identity will do no more harm than for instance a postal service. In other words the detrimental effects of technological innovation do not outweigh the benefits that it has provided.
On the other hand, though, the argument can also be made that by focusing all of your information into one access point, this will increase dramatically the temptation and likelihood of identity theft; a classic case of ‘putting all the eggs in one basket’. That while identity theft may have preceded computers, interconnectivity, and programs such as financial planning software in particular, you will be dramatically more at risk not only for the probability of becoming a victim of identity fraud, but additionally to more thoroughly suffer as a thief will have access to virtually every piece of your financial world. The answer to this depends on how you approach the fight against identity theft.
Defense
One approach is an absolute defense. This will mean going in the direction of protecting all your information as much as possible. Followed to the extreme this logic would result in having none of your information online, doing no online payments, banking, or even email and social networking; going off the grid entirely. Unfortunately as was stated previously, identity theft can still occur. Your mail can always be intercepted or your garbage might yield plenty of documents that can be used in order to gain important personal information. A credit card or cell phone company might get hacked with your information in the database. So the only absolute defense is to have no accounts with your information stored in them anywhere. Imagine how hard life would be with no cell phone, no credit cards, no car payment or house payment; everything you ever use must be paid for in cash. Though this might offer a nearly full proof defense for identity theft it is fairly unrealistic in practice. For those that are extremely dedicated to protection against identity theft, it will ultimately come down to a question of just how much you are willing to sacrifice for protection.
The best defense is a good offense
A more effective defense is to go on the offense. By embracing the technology available today and using that to your advantage in the fight against identity theft, you can assure your safety and also live realistically within the demands of modern reality. By not only not shying away from the connectivity of the internet and the focused accessibility of financial management software programs but by utilizing these services completely you will yourself be absolutely appraised of everything that is happening at all times with every dollar of your financial world. While this is less of a defensive approach, as shown, defense is never absolute. By focusing more on early detection of identity theft rather than on prevention altogether identity theft is weakened extensively. This can be evidenced by identity theft trends which have consistently decreased over the course of the last five years.
Financial planning software is an excellent deterrent against identity theft due to the very same reason some opponents accuse it of being vulnerable. It is an integrated program that allows for keeping track of all aspects of a financial environment from one central location or program. Relying on a defensive strategy for prevention of identity fraud is ineffective in moderation and unrealistic in the extreme thus making it an alternative not as choiceas the offensive technique of early detection. Early detection is a much more effective, not to mention realistic, approach to ensuring you are not a victim of identity theft.
In the modern world of computing and doing business online the most important thing is security. With good financial planning software you will have no worries.