Is Online Banking Safe and Secure

Is online banking safe and secure? We’ll discuss that in this article.

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Introduction

You’ve definitely seen a new financial trend in advertisements: the online bank. These banks appear to be the greatest innovation since the ATM, according to the advertising. But is online banking safe and secure, and if it is, how secure is online banking? After all, you don’t want a moron to steal all of your hard-earned cash to online scams and phishing.

Do not be concerned. Online banking is secure provided you choose the correct provider and take basic measures. We’ll walk you through it.

What Is an Online Bank and How Does It Work?

An online bank is a type of financial institution that operates online.

The only significant difference between an online bank and a typical bank is the lack of a physical location. There are no physical branches of online banks. Only your mobile phone, computer, or tablet/ipad are capable of accessing them.

People like online banking because it is quick and convenient—there is no need to stand in line at a drive-through teller. They also choose online banks since they usually have reduced costs and greater interest rates. They don’t have to spend for a physical structure since they don’t have to.

Risks of Online Banking

Although online banking is popular due to its convenience and ease of use, it is not without flaws. When you go digital, you’re taking some chances. Here are several examples:

1. Customer service that is frightening

Face-to-face interactions suffer as a result of the gains in speed and convenience. If you have an issue with your online banking account, you can’t stroll into a branch and speak with a manager. Customer support must be contacted. And, depending on which bank you go with, you may set a new world record for “minutes spent on hold listening to horrible music.” The good news is that some online banks place a premium on excellent customer service, so you can choose who you deal with.

2. It is possible for online banks to go offline

There is no such thing as an ideal website. Isn’t it shocking? However, if an online bank goes offline, you won’t be able to go down to the local branch to transfer money to make a payment. The good news is that most difficulties are swiftly resolved because that is how the bank keeps clients and stays in business. To prevent this issue, keep some of your emergency fund on hand but not in your wallet, or put your emergency money at a different bank.

3. Hackers

In today’s digital world, it’s the thing you fear the most. Simply saying the term conjures up images from a horror film. Your skin crawls at the thought of someone taking your hard-earned money from your online bank account.

However, there is one simple method to avoid this: ensure that your online bank provides excellent security safeguards.

If hackers get access to your online bank, you’ll most likely receive your money back if you report the matter to the bank within 60 days. But only if you didn’t do something heinous to become a victim, such as posting your password publicly on social media.

4. Identity Theft

Worse than having your money taken is having your identity stolen. And they complement each other. Even if hackers do not steal your money, they can obtain your personal information, like your social security number, and use it to access your other accounts. The sole advantage, if there is any, is that most hackers target big fish, such as company accounts with large sums of money. In comparison, individual accounts are specks.

You’re hesitant to use an online bank because you’re afraid of losing your money. You should not be. Your funds will be safe and secure if you select a secure bank and avoid blunders that put you at risk.

How to Safeguard Online Banking

Online banks make sure that online banking is safe and secure by offering excellent security measures, but you must also take steps to ensure that your online banking is safe and secure and that you are protected from identity theft. This entails being knowledgeable about hacking and phishing and how they work to obtain your information so you can prevent any gaps in security. Here are a few suggestions.

1. Pick an online bank that offers top-tier security

When looking for an online bank, this is the most important aspect to consider. Look at the bank’s site URL for a simple fix. The letters “https” (rather than “http”) should appear at the start. The presence of the little S indicates that the address is safe and secure. You can continue your investigation if the bank passes the first test.

The next thing to do is to know if your online bank’s app requires two-step authentication (also known as two-step verification) to access your account. Online banks and other organizations use this strategy to secure their consumers. You have to input your account number and password when you check in to the website. That is the first step. Step two asks you to submit further information, most commonly in the form of an answer to a question such as “What is your mother’s maiden name?” ” or “What is the name of your first pet?” You choose the question you want to answer every time you log in when you set up the two-step authentication. In place of a question, you can also set up a passcode texted to your phone or your fingerprint as authentication.

This second set of data is more difficult to steal, providing you with additional security. And you want your online bank to be as secured as Pentagon when it comes to your money. If an online bank’s privacy and security policies are inadequate, consider switching banks. You have too many options to limit yourself to a blog with the same level of security as your mother’s.

2. Don’t use public Wi-Fi when doing financial transactions with your online bank

You can’t control who is around you whether you’re at a restaurant, a coffee shop, a library, or an airport. As an example, consider the hacker who is recording your keystrokes while you type. It’s a real thing called “keylogging.” It’s also possible to use a video camera to capture whatever you type. Then, the scumbag snakes, the thieves, go over the tape to obtain your personal information.

Hackers may access your account in a variety of ways when using public Wi-Fi, and that includes keylogging. Because you can’t be sure of everything, avoid doing online banking when out in public.

3. Use caution when using your debit card

This isn’t news to anyone, yet some individuals are dishonest. Con artists, scammers, and swindlers are continuously seeking methods to steal part of your money, so don’t make it easy for them by using your debit card. While typing, do not mention your PIN number. Your PIN number should not be kept in your wallet. And never publish images of your debit card on social media. That simply invites a hacker to gain access to your account.

4. Passwords should be changed on a frequent basis

Yes, we understand. Changing your passwords on a regular basis is inconvenient. Who can remember all the numerous passwords you use for each online account? Email. Social networking sites. Accounts for shopping. Your school’s web page. The list goes on and on, like the internet itself.

5. Protect yourself against identity theft

Regardless of who you bank with, you need to acquire an identity theft protection, often known as fraud monitoring. A security company will notify you if it discovers a breach in your personal information, for example, someone else is using your social security number or issuing a new credit card under your name. Security companies are offering this service for a cheap monthly (or annual) price. If you are a victim of identity theft, the top monitoring businesses will assist you in recovering.

Monitoring is done differently by online banks. When a major transaction hits your account, for example, some will send you SMS or email you. With that, the bank will know it was you who spent the money, not some cyber-criminals.

Some banks will additionally provide free fraud monitoring. Regardless of a little monthly charge, fraud detection and prevention, as well as identity theft protection, are essential in today’s hacker-infested environment.

Conclusion

Every bank, including the one right around the street, has flaws. Online banks, like physical banks, are secure if they do place the best security features to protect your money and you do your best to be vigilant and make wise decisions. When all these are done, you can enjoy the benefits of online banking, such as fewer costs and greater interest rates, without worry.

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Adam is an internationally recognised author on financial matters, with over 669.2 million answer views on Quora.com, a widely sold book on Amazon, and a contributor on Forbes.