Sharing financial details, lose life’s earnings

The age of the internet and information has paved the way for greater financial literacy. However, the risk of falling victim to financial frauds too has gone up owing to careless handling of financial details or indiscriminate sharing of financial information with outsiders. While transparency is essential to seeking loans or making necessary investments, being watchful regarding important financial details helps curtail chances of wrongful deceptions and unwarranted forgeries.

Sharing the finer details of your financial portfolio or the investments that you have made with anybody may invite trouble. DNA spoke to some financial experts who advised against sharing crucial financial information including:

Your financial portfolio: It does not matter whether the value of your portfolio runs in lakh or crore of rupees. Having a financial portfolio simply means that you have made regular investments and are clear about your financial goals. The probability that you must have earned quite a lump sum through the market is high. Irrespective of the amount you have accumulated, it is important that you refrain from discussing the details of your investments with outsiders.

Vineet Patawari, co-founder, stock analytic app StockEdge and financial market learning portal Elearnmarkets.com, says, "People might blindly replicate your portfolio. You will have no control over it. They generally ignore your stock picking strategies and risk management including portfolio re-balancing. They often lose money and blame you for not making the money they were expecting. To save yourself from such situations, avoid discussing the details of your financial portfolio with outsiders."

Quantum of your total debt: Seeking loans to buy a house or car is common. The advent of technologically advanced online lending platforms has considerably eased the demand for personal loans. While you may be repaying one or multiple loans, it is important that you do not discuss them in public. Suresh Sadagopan, founder, Ladder7 Financial Advisories, says, "It is important for family members and the advisor to know where one stands. This brings in realism and a sense of responsibility due to which they calibrate/temper their expenses and goals. The advisor needs to know so that they can plan accordingly."

Debit and credit card numbers: Banks have constantly propagated against the idea of sharing debit card or credit card numbers with anyone. Be it the card verification value (CVV) or the PIN number of your card, maintaining confidentiality is important. Raj Khosla, founder and managing director, MyMoneyMantra, says, "Card verification value (CVV) and personal identification number (PIN) are checkpoints to validate card transactions. You should never share CVV/PIN in person, over the phone, mail or anywhere else, thereby ensuring protection against online phishing attacks and risks of identity thefts." This means that you must never disclose details such as OTP numbers of your transactions, passwords of your email statements and PIN numbers of your debit or credit cards.

Transaction details: Details that seem innocuous may cost your entire life's earnings, if not taken care of. These details may include your PAN number, Aadhaar Number, insurance policy number or your bank account number. Also, some people have the habit of keeping signed cheques or debit instruction slips (DIS) for future use. CS Sudheer, founder and CEO, Suvision Holdings, says, "The OTP is the second-factor authentication which secures financial transactions and is valid for a specific time. Don't share the OTP with anyone as there's a high chance of fraudulent transaction. The bank wouldn't take responsibility if the transaction was authenticated by an OTP."

ITR specifications: There are times when we are asked about our net taxable income while making investments. While the extent of your investment does depend on your income, it is important that you disclose these details either to the tax authorities or your financial advisors only. Also, you must ensure that your tax documents do not fall into the hands of an unknown person, thus, inviting unwarranted mischief. Hemant Beniwal, Sebi registered investment adviser, The Financial Literates, says, "Financial information should only be shared with the Government, CA, family members and your financial planner with a confidentiality agreement. These days many frauds are happening and in most of the cases, fraudsters trick people based on their information. The Income Tax Return information reveals a person's financial status, an idea about his investments, banking relationships that are too sensitive and can be misused."

No matter how finicky or fastidious one may sound, it is important to understand that your finances are completely your responsibility. Hence, maintaining the necessary discretion is also important. Whether you are salaried or earning from your business, ensuring that your financial details do not fall in untoward hands is entirely your responsibility. Maintaining necessary precautions ensures that you do not fall prey to mischief-mongers waiting to grab hold of your hard-earned money.