Linux security fundamentals involve verifying who is using the system, checking and setting correct file and folder permissions, and enabling network protections like firewalls. The process starts by identifying the user with the 'id' command. Then, critical system files like /etc/passwd are checked for proper permissions using 'ls -l'. Folder permissions are tightened with 'chmod 700' to restrict access to only the owner. Finally, enabling the firewall with 'sudo ufw enable' helps block unwanted network traffic. These steps together form a basic but important security setup to keep Linux systems safe.