I got an email yesterday, and I suspect all of you who use Vanguard received the same. It’s rare for me to write within one day of something happening, but this one is worth it. If you deleted it, dig it out of your trash when you’re done reading this, and click that button.
You all need to be aware of that email, even if you use someone other than Vanguard. If you’re with a different firm, read this article, then find out what they have to offer that’s comparable.
This is important stuff.
Here’s what the email said:
Source: Vanguard Email 7/29/26
I clicked…and here’s what happened…
I just ran the Vanguard Security Audit, and here’s what I learned. Share on X
I clicked that “Check your profile” button at 11:32 am on July 29th, and at 12:30 pm I started writing this article. In one hour, I completed 100% of the Vanguard audit steps (and implemented 100% of the recommended upgrades).
I completed all of the suggested tasks and moved from “Good” to “Excellent” in less than an hour.
Amazingly, that even included some serious security upgrades on my Samsung phone (everything is now biometric and PassCode-based, also within the hour!)
Here’s how things flowed. (I’ve got to say, it was incredibly efficient.)
1. My Security Dashboard Opened … And Gave Me This:
Sure, it’s Great to be Great, but what would it take to fill out that rainbow?
Vanguard immediately follows up, of course, with those “personalized suggestions,” a checklist of recommendations directly below the rainbow, presented in the form of a 10-Item scorecard.
2. The 10-Item Scorecard
Unfortunately, I didn’t think to grab a screenshot of my initial scorecard (the idea of writing about the audit was still just a small seed in my brain). Suffice it to say, my scorecard wasn’t all green, which resulted in my “Great” vs. “Excellent” headline score shown above.
The scorecard shows a “Red/Yellow/Green” for each of 10 security items, with hyperlinks to each red/yellow item to lead you through the fix. I clicked every one of those links, and did a complete security update in less than an hour. I did capture the completed list at the end of the audit, and have pasted that below:
Note it’s all now green. Wink. More importantly, it is the same scorecard format you see at the very beginning of the process, but you’ll likely see many yellow items. I had ~4 yellows to fix, if memory serves correctly.
Take the time to turn your scorecard green!
3. The Security Updates I Implemented
I can’t recall every update I implemented, and I didn’t take enough screenshots to walk through each step. I simply followed those yellow links and did what they suggested. I should state I am far from an expert with regards to modern security techniques, so some of what I say may not be entirely technically correct.
I’m just a guy out here trying to figure it out, like the rest of you.
That’s why I decided to click that button…to figure it out. I couldn’t be happier with how smoothly it went, and that’s what inspired me to write this article. Based on my experience with the process…
…I strongly recommend everyone click that “Check your profile” button.
When you do, you’ll be doing things like this:
3a) Locked Outgoing Money Transfers
By far, the upgrade I was most pleased about was the ease of implementing a lock on outgoing money transfers. I had recently listened to a ChooseFI podcast about the importance of doing an ACATS lock, and had it as a “to do” on my calendar for this week.
Not to get into the weeds, but an important note. I did some research as I wrote this section, asking ChatGPT to compare an ACATS to the “Locking Outgoing Money Transfers” I had just implemented. This upgrade is not the same as the ACATS, and I would recommend Vanguard add the ACATS feature to their audit process flow. As it stands, it is not addressed in the audit and needs to be implemented separately.
Add it to your “To Do” list, it’s important. For more detail, here’s how ChatGPT explains the difference between ACATS and Lock Outgoing Money Transfers:
ACATS Lock: Prevents an Automated Customer Account Transfer Service (ACATS) transfer, which is the system brokers use to move an entire account or specific securities from one brokerage to another. If someone tried to transfer your Vanguard account to another firm without your authorization, an ACATS lock is designed to stop that.
Lock Outgoing Money Transfers: Prevents cash from leaving your account through methods such as ACH transfers to linked bank accounts, wire transfers, or other cash disbursements (depending on how Vanguard implements the feature).
Importantly, the Lock Outgoing Money Transfer does NOT impede your ability to move your money to other institutions. If the transfer is initiated by you, it’s the same as it always was. The Lock ensures that no one else can move your money without express approval by you.
Seems like a good security setting to turn green, so I did.
3b) Implemented Biometrics Security
One of the items on the checklist was to implement biometrics, so I clicked the button. I’ve been having some issues with my fingerprint ID on my phone (probably my screen protector’s fault), and wanted to reset my fingerprint scan anyway.
A couple of clicks later, and my money at Vanguard is now secured by biometrics. And…I have a new fingerprint scan that works (and Face ID, of course).
Better than a password, and a lot more secure.
3c) Implemented Pass-Code Authentication
For years, like most of you, I have had to keep my cell phone nearby when I’m logging in to a secure website, so I can dutifully retype that annoying security code that was just texted to me.
As of one hour ago, I’m using passcode authentication, a much more secure (and easy-to-use) code generator to confirm it’s you trying to log in somewhere.
I’ve been reading about passcode superiority for a while, but just hadn’t gotten around to setting it up. Of relevance, a UK security agency recently declared “Passkeys superior to passwords – passkeys should be the ‘first choice” for authentication.:
I now have Pass-Codes in place, and still had 15 minutes of my hour left.
Within 45 minutes, I had completed all of the suggested tasks and moved from “Great” to “Excellent”, as confirmed below:
3d) Phone Security Upgrades
I got an unexpected bonus when I did the Vanguard Audit, and I ended up doing a cell phone security audit at the same time. It wasn’t expected, but (as mentioned earlier) I was trying to figure out how to update my fingerprint scan on my phone to set up the biometrics.
That search through the Security Settings on my Samsung Android phone led to some additional security updates recommended by Samsung. I figured, “why not”, and spent the last 15 minutes doing some upgrades to my phone’s security. Similar to the VG scorecard, here’s what Samsung’s looks like:
After a few quick clicks, my cell phone’s scorecard is now entirely green (and passkey protected), as well.
Taking steps to review and enhance the security around your financial assets is critical, especially now. With the advancements of AI and the dueling forces of good vs. evil, it’s simply not responsible to ignore this stuff and hope it goes away.
It won’t.
So pay attention, and don’t procrastinate (I’m guilty as charged).
If you get an email from a trusted firm like Vanguard suggesting you review your account’s security, don’t delete it. Make sure it’s from a reliable source (if any doubt, log in directly to your account and search for your Security Settings there), but keep an eye on suggestions to enhance your security. If you didn’t get the Vanguard email, take a few minutes to search the “Security” area on your firm’s website, then implement the recommended upgrades.
Within one hour, I…
Ran The Vanguard Security Audit
Implemented numerous key security measures
Increased my security score from “Great” to “Excellent”
Increased my cell phone security.
And started this article about it.
An hour well spent.
I encourage you to do the same.
Your Turn: Are you paying attention to updating your security settings, or have you been procrastinating? Did you click the Vanguard button yesterday? What other security measures are you using that you’d recommend to other readers? Let’s chat…
