Consumers who use online banking can view their financial information instantly. Online banking is excellent for everything from long-term financial planning to handling emergencies because of its convenience and ease of information access. Some banks are only available online, but most traditional banks have physical locations and provide digital banking services.
Even though online portals and mobile banking apps offer unparalleled access to your financial data, some customers are concerned about online banking security. Here is all the information you need to safeguard your online banking data.
Online Banking
You can use the Internet to carry out financial transactions through online banking, also known as web banking or Internet banking. Most services typically provided by a local branch are now offered to clients using online banking, including online bill payments, transfers, and deposits. Almost all financial institutions offer online banking, which you can access via a computer or mobile application.
How Secure is Online Banking?
Internet banking security is clearer than you think because financial institutions can safeguard your information through stringent security measures like 128- or 256-bit data encryption. That does not, however, imply that there is no risk to your bank account. Thirty-one percent of bank customers report having experienced data security issues, account hacking, or recently compromised information.
Your bank is supposed to reimburse you for any fraudulent deposits made into your account if you encounter any of these problems. At the time of bank failure, the FDIC additionally insures the funds in your account up to a certain amount. Take precautions to keep your money safe from hackers. One crucial step is ensuring the security of your online banking passwords.
Financial institutions employ diverse security protocols to safeguard client data. These moves might also consist of the following:
- 128- or 256-bit encryption for data
- Encrypted Email Messaging
- The ability to automatically log out of online and mobile banking
- Two-factor verification
- Account Monitoring
- Verification of electronic signatures
Risks of Online Banking
Some frequent threats to the security of online banking are as follows:
- Phishing: This practice involves asking for account details, including passwords and credit card numbers, by text or email, typically from someone pretending to be a representative of your bank.
- Hacking: Hacking occurs when cybercriminals gain unauthorized access to your bank account to steal money or modify personal information. Also called ATO or account takeover.
- Identity theft: This occurs when someone creates new credit accounts in your name using your identity, frequently by breaking into your bank account.
- Malware: When malicious software infects your system, it grants hackers access to your online banking credentials and login details.
While not all online protection measures can prevent every banking threat, many scams arise from users’ account practices. For instance, if you are using the same or an equal kind of password for one or more banks, it may cause a threat of fraud. It’s time to kick this habit if you find yourself doing it. Further, let’s understand how to protect your online banking account and information.
6 Tips for Online Banking Security
Protecting your login credentials for online banking is a tedious task. On the other hand, it can greatly lower the likelihood of a fraud event. To improve banking security, here are six tips for secure online banking data protection:
1. Select Robust Passwords
Your net banking password needs to be as robust as possible. This is due to how easily hackers can access your online accounts by cracking weak passwords. At least 12 random letters, each capital and lowercase, numbers, and unique characters like the “$” symbol make up a sturdy password.
Passphrases should include word combinations or something relatable. However, hackers may make educated guesses about well-known sayings, lyrics, and quotes.
2. Modify your passwords Often
If hackers already have your credentials, you can restrict how long they can access your account by changing your passwords, ideally every few months. You can do this using one of the many online password generators. It makes the process of creating passwords easier by automatically producing random passwords. Attacks can be prevented most effectively by creating solid and distinct passwords for each account.
3. Using two-factor verification
For online banking, two-factor authentication (2FA) adds more security. Before you can access your account, you must verify your identity twice. For instance, this may involve logging into your bank’s website and entering the security code you received via text message. Before using your online account, some banks require you to set up 2FA. Conversely, a few will let you set off 2FA through your account settings. This includes connecting your account to a brilliant virtual authentication mechanism—like your phone—through this process.
4. Don’t Use Public Wi-Fi Networks
Strong security measures are often absent from public Wi-Fi networks. This increases your risk of fraud and theft and makes it simpler for hackers to obtain private information, such as your bank account details. So, make sure you use the bank app on your phone while away from home and connected to your mobile provider if you want to access your bank. The following are the primary risks associated with online banking on public Wi-Fi networks:
- Eavesdropping
- Man-in-the-middle (MITM) attacks
- Malware
- Session hijacking
- Phishing attacks
- An evil twin attack
5. Make Use of the Securities Offered by Your Financial Institution
You can stay safe online with the security features that banks frequently offer. For example, the banks will share unusual activity alerts via text messages. You should enable these features through your account settings or speak with a bank representative about how to do so. Utilize all the security resources your institution offers to safeguard yourself online, regardless of the procedure.
6. Remain cautious of Scams
Phishing attacks, social engineering, and password cracking—where hackers use malicious technology to guess your password—are common online banking scams. If you access your bank account through a shaky public Wi-Fi connection, fraudsters may also be able to steal your personal information. It’s important to stay informed about the most recent scams and watch for any warning signs that point to a security breach. For example, never click on any links in an email that appear dubious from someone posing as a representative of your bank. Speak with your financial institution instead to make sure the email is authentic.
Bonus Tip – Frequently Check Your Accounts
You can spot any fraudulent transactions by frequently checking your bank accounts online. You can dispute these charges with your financial institution to receive a refund. Try to check your accounts for any unauthorized activity once every one to two weeks. You must quickly update your online banking password if you notice any fraudulent transactions.
Safeguard Your Online Banking with Cheqly today!
Cheqly is a great choice for enhancing online banking security, as all our processes comply with the latest Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations. This ensures enhanced security for financial transactions and protection against fraudulent account access.
Sign up for a Cheqly account today and experience a more secure, streamlined banking process prioritizing your financial integrity and ease of use.