The Security Of Online Personal Finance Software.

January 2, 2017

As the lives of the average American becomes more and more digitally based, online security has become a bigger and bigger issue. For many years, there were constantly stories of identity theft and hackers breaking into credit card company databases. The tales of people losing their life savings or companies surrendering millions of pieces of customer information scared many people into being hesitant about what they put into cyberspace. And for the most part, this has been good advice. There’s obviously no reason to be cavalier with one’s information. As technology has improved, online personal finance software has become more and more popular which has advanced to where it is now able to pay bills, analyze spending habits, and assess taxes. These features are very attractive, especially to people who’ve had a hard time budgeting on their own. But these people are often concerned about security, so its important to consider all of the features of online personal finance software to see if it makes sense from a security perspective.

Online personal finance software features the ability to automatically pay all bills each month on a specified date. This is one of the best features of online personal finance software, but it is one that scares a lot of people. People must submit their checking account information as well as the account numbers for whatever bills they would like to automatically pay. One of the reasons it is safe is because generally the information is stored on the person’s computer, not on the software company’s site, and is then used to pay the bills. Since many banks have offered this feature for years, a lot of people are comfortable with it.

Tax information is also a pretty private matter to most people. Online personal finance software can automatically sift through tax returns and analyze where deductions were missed and the best strategies to use. In some cases, the software can link to the checking account with the auto bill pay feature to deduct the amount of tax owed and transfer it to the IRS. This seems incredibly handy, especially to people with very complex taxes, but having all of that information in one central location seems frightening to some people. It really shouldn’t, especially because most people use a tax preparer and the information is kept at their office anyway. In the case of the online personal finance software, at least it’s kept on the person’s own computer. As a feature to assist with budgeting and other aspects of economic life, online personal finance software has been extremely helpful to many people. There are still concerns about how safe data is. Generally, as long as a person is smart and doesn’t give away their passwords and has good anti-virus software, everything should be incredibly secure. As people warm up to the reality of life in this century, more people are becoming accepting of having online personal finance software help with their financial well-being.

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