iPhone users are warned over their passcode, here's how it can make you lose all your money

According to the recently published report, if your iPhone gets stolen, the thieves make use of not only your device but every valuable piece of data inside it. The passcode that is meant to protect your information does the opposite. Here is why.

An iPhone passcode is not as safe as you think

Recently published The Wall Street Journal report by journalist Joanna Stern details how thieves aren’t just taking iPhones, but all the valuable data, including the financial one, in them.

It give the example of Reyhan Ayas, a 31-year-old economist whose iPhone 13 Pro Max was stolen outside a bar. Within minutes, she found herself unable to access her Apple account and all the data associated with it, including her photos, contacts and notes. Over the next 24 hours, approximately $10,000 / £8,000 disappeared from her bank account.

Here is why a passcode alone is not enough.

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Relying on an iPhone passcode can lead to you losing money

Your passcode unlocks deeply personal parts of your iPhone.

The four- or six-digit codes are too easy to spy on, even from a distance. Some thieves have even thought through how to capture passwords with precision, tasking their partners in crime with recording unsuspecting people using the passcodes, for easy reference after a theft.

Once a criminal identifies those digits on your Lock Screen, your device and all the data in it are fully compromised. They can reset your iCloud password within minutes.

Face ID won’t protect your sensitive apps, either, since they can all be unlocked with the passcode as well. That includes personal notes, banking apps, and money transfer apps leading to you losing money.

Here is how to stay safe

Experts recommend switching to a longer, alphanumeric password - one with letters, numbers, and special characters as it’s far more secure. You can do this from Settings > Face ID & Passcode > Change Passcode > Passcode Options.

Don’t let anyone see you type your passcode at any time and try not to use a password manager for financial apps. You can protect yourself by choosing a third-party password manager like 1Password or Bitwarden, as they require a separate master password to access.

It’s important to opt for a two-factor authentication (2FA) method if your bank app allows for it, and make sure it’s a dedicated authenticator app, not one that works via text message. Consider an app like Aegis or Raivo as they let you set a unique password rather than relying on your iCloud password for entry.

Experts also advise deleting all the entries that feature your credit cards, bank details, social security number, or identification documents from your phone. A scanned copy of your credit card is sometimes all a bad actor needs to wreak havoc on your bank account.

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Sources used:

- LifeHacker: 'Don’t Trust Your iPhone’s Passcode to Keep Your Data Safe'

- PressCitron: 'Your iPhone code threatens your bank account, here's why'