Is Online Banking Safe?

Online banking is becoming an increasingly popular form of financial account management because it gives people the convenience of performing financial transactions such as depositing and transferring money whenever they want from any location – provided they have an Internet connection. Although banks use various strategies to secure the electronic transactions of their clients, consumers must take certain steps to make their electronic transactions much safer.

Security Issues
One of the biggest security problems in online banking is harmful malware. These applications are used by malicious people to intercept users’ personal data, including transaction information and passwords. Malware can affect different types of electronic systems including tablets, network routers, desktop computers, and smartphones.

Another type of security problem in Internet banking is phishing. This refers to an electronic attack that compromises people’s personal information. Criminals often send fraudulent emails that mimic the appearance of official bank emails and with links that lead to fake websites. Phishing steals users’ personal information and passwords when they enter the data into their computers.

Avoiding Risks
The most obvious risk of online banking is theft. However, some bank deposits are secured by the Federal Deposit Insurance Corporation (FDIC). Certain financial products such as stocks, mutual funds, non-deposit investments, and insurance products are not covered by the FDIC.

A person risks becoming ensnared in identity theft if a criminal successfully steals his personal information through Internet financial account management. Many criminals use the information they steal from online bank accounts to commit fraud like applying for credit and loans under other names.

Institutions typically use encryptions and protocols to protect their clients’ information when transactions are conducted electronically. One of the technologies used in Internet financial account management is secure socket layer protocol, which helps to authenticate clients’ electronic connections with their lending institution so that they can avoid connecting to a fake website. The bank then checks to make sure that the information it’s receiving has not been tampered with before continuing with the transaction.

Safe Account Management
Install antivirus software on your desktop computer and laptop to protect it against viruses and malware. Update your anti-virus software regularly to ensure it has the latest security features and updates.

Avoid sharing laptops and other portable Internet devices to avoid risk of exposing yourself to malware and other potentially malicious applications. Only perform exchanges on laptops and computers that are properly secured.

Never disclose your personal pecuniary information including account numbers, PIN, or passwords to anyone through word of mouth, text messages, emails, or phone calls. In addition, do not perform Internet transactions with a financial institution that does not encrypt its client’s electronic transactions.

Online banking is a great way to perform transactions and keep track of your money and account activities. One of the most important things to remember when doing transactions online is that your money is only as safe as the devices you are using. While Internet financial account management is considered safe and convenient, it is important to protect your identity and money when doing transactions electronically.