Are Budgeting Apps Safe?: What You Need to Know Before Using One
Written by
Rudri Patel
Edited by
Emily Gadd
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Budgeting apps can be safe if they are equipped with security measures. Look for bank-level encryption, two-factor authentication and read-only access. Read the app’s privacy policy to determine if they are sending your name or email to third-party vendors.
Also, look at reviews, app ratings and recent complaints. If you want specific information, call customer service to determine an app’s security measures.
Common Security Risks You Should Know
It’s a good idea to know what the risks are so that you can prevent the issue. Here are common security risks and how to prevent them:
Data breaches
- What it is: An unauthorized person gains access to sensitive, private and confidential information. This information is accessed, copied and stolen. Common breaches include stealing bank account information, passwords and credit card numbers.
- Why it matters: Hackers can use this information to open fraudulent accounts in your name, steal from bank accounts and commit identity theft.
- How to prevent it: Use strong and secure passwords, and enable two-factor authentication (2FA).
Phishing attacks
- What it is: A scammer targets you through emails, texts or websites and tricks you into revealing personal information. This information could be passwords, credit card numbers and bank account information.
- Why it matters: If you fall for a phishing attack, hackers can steal your identity, make unauthorized purchases and access your accounts.
- How to prevent it: Do not click on suspicious links. Always try to type in the website address instead of clicking the links.
Weak passwords
- What it is: A weak password is one that is easy to guess and can allow unauthorized users to gain access to personal and sensitive accounts.
- Why it matters: Hackers can access your account, steal your personal details and commit fraud.
- How to prevent it: Create a strong password that uses a combination of letters, symbols and numbers. Do not use common words or phrases that are obvious or can be easily guessed.
Unencrypted transmissions
- What it is: Data sent over the internet is not scrambled. This makes credit card numbers and passwords easy for hackers to access.
- Why it matters: Criminals can easily gain access to sensitive information especially if you are using various apps or websites on public WiFi.
- How to prevent it: Avoid entering or accessing private data on unsecured networks. Always type in the website address into your browser.
Third-party data sharing
- What it is: A company shares your name, email and shopping habits with advertisers and outside businesses.
- Why it matters: Your data could be misused, sold or exposed without your permission. This transfer of your information could lead to scams, spam and privacy loss.
- How to prevent it: Opt out of data sharing and targeted advertising whenever possible.
Mobile Malware/Device Loss
- What it is: Mobile malware is harmful software that infects smartphones and tablets. Device loss is when you physically lose your electronic device.
- Why it matters: You could be locked out of your apps if your device is infected. Thieves can steal personal information and access your bank accounts.
- How to prevent it: Use strong passwords and a biometric lock, and install trusted antivirus software.
Security Features of Popular Budgeting Apps
Are you using these common budgeting apps? You may want to know how they are protecting your data.
| App Name | Encryption Standards | 2FA Support | Data Sharing Policy |
|---|---|---|---|
| As | 256-bit SSL | Yes | Shares with Intuit affiliates |
| Rocket Money | Bank-level security | Yes | Minimal third-party sharing |
| YNAB | 256-bit SSL | Yes | No ad-based data sharing |
| Monarch | 256-bit SSL | Yes | Strict no-sell policy |
| Simplifi | 256-bit SSL | Yes | Shares with parent company |
| EveryDollar | Not transparent on website | Yes | Some third-party sharing |
How to Protect Yourself When Using Budgeting Apps
Here are some best practices to use to protect yourself when using budgeting apps.
- Use a strong, unique password. Avoid reusing old logins, and choose passwords with symbols, letters and numbers.
- Turn on 2FA. If available, enable 2FA if the app or website has that security feature.
- Use private Wi-Fi. Avoid using budgeting apps on public Wi-Fi.
- Update apps. Update your apps regularly for the latest security patches.
- Read privacy policies. Read the app’s privacy policy before linking bank accounts.
- Use anti-malware. Install anti-malware software on your phone or tablet.
Stay Safe While Budgeting Online
Want to use a budgeting app without worry? Choose one with strong security, read privacy policies carefully and take steps to protect your device. When used wisely, budgeting apps can help you save more — without sacrificing your personal information.
Ask customer service if you aren’t sure of the security measures. You can ask about encryption, data selling and whether there are secure data partners.
