Data can be classified with labels such as public, personal, sensitive, confidential, secret, top-secret, or other categories. The more valuable or sensitive the data, the more it needs to be protected.

Example: Credit card numbers, account numbers, personnel information, Social Security numbers, tax records, network diagrams, business plans, passwords, sensitive emails, or personal medical records.

So, what precaution should we take to protect our personal and financial data?

1.Use passwords to protect your access and encrypt sensitive files.

Use a strong password or pass-phrase to protect access to your data.

Passwords and other security features add layers of protection if used appropriately. By encrypting files, you ensure that unauthorized people can't view data even if they can physically access it. You may also want to consider options for full disk encryption, which prevents a thief from even starting your laptop without a passphrase. When you use encryption, it is important to remember your passwords and passphrases; if you forget or lose them, you may lose your data.

2.Follow corporate policies for handling and storing work-related information.

If you use your computer for work-related purposes, make sure to follow any corporate policies for handling and storing the information. These policies were likely established to protect proprietary information and customer data, as well as to protect you and the company from liability.

3.Install a firewall.

A firewall is a software program designed to allow good people in and keep bad people out. Most new computers come with firewalls integrated into their operating systems. Those who have a DSL or cable modem have an added layer of protection because these modems come with yet another firewall built in. If, however, you have an older computer or use dial up, you may need to buy a firewall separately and install it yourself.

4.Install and update antispyware and antivirus programs.

Microsoft and numerous application vendors offer users regular updates to existing antispyware programs, so be on the lookout. As for antivirus protection, Symantec and Norton antivirus are popular choices.

Regularly scan your computer for spyware.

Spyware or adware hidden in software programs may affect the performance of your computer and give attackers access to your data. Use a legitimate anti-spyware program to scan your computer and remove any of these files.

5.Avoid accessing financial information in public.

Resist logging on to check your bank balance when working from a coffee shop that offers wireless access. These systems are convenient, but also unknown. Casual users have no way of assessing how sturdy their firewalls are.

6.Update your browser.

Updating your browser on a regular basis can help plug up security holes, so make it a habit.

7.Look for "locks."

How can you tell if your financial site is really secure before you log on? The Web address should start with "https," instead of "http," says Weston. Also, look for small lock icon in the lower-right corner of the browser window.

8.Don't open mystery attachments.

Never open an attachment or click on a link sent to you by an unknown party. Attachments can contain viruses and links can lead unsuspecting users to dummy sites where they are asked to input financial information.

9.Restrict network or shared access.

Do not allow anyone access to sensitive/personal data unless they specifically require access. At work a web server administrator may not need access to confidential data in the backend database, a manager may not need access to the network password storage files, or a secretary may not need access to sensitive personnel files. Similarly at home, your children do not need access to your electronic tax records or bank account records. By limiting access to sensitive/confidential data to only those who really need it you can limit the risk of both accidental and malicious exposure. Additionally, by limiting access to only those requiring it, you are not only protecting the data, you are protecting your organization/family as well.

10.Dispose of sensitive information properly.

Simply deleting a file does not completely erase it. To ensure that an attacker cannot access these files, make sure that you adequately erase sensitive files.

Related links:

http://www.msisac.org/awareness/news/2007-03.cfm

http://www.us-cert.gov/cas/tips/ST06-008.html

http://finance.yahoo.com/banking-budgeting/article/103893/Six-Ways-to-Safeguard-Your-Online-Assets