How To Implement Safe Online Banking Practices

Online and mobile banking has become the norm, providing convenience and instant access to manage our finances. However, with great convenience comes increased risk. Without proper precautions, our sensitive information is vulnerable to cyber criminals seeking to steal identities and drain accounts.

Fortunately, there are steps we can take to enjoy the benefits of digital banking while minimizing chances of fraud. In this comprehensive guide, we’ll explore best practices to keep your money secure in our increasingly digital world.

Choose a Reputable Bank

The first line of defense is choosing a bank or credit union with robust security capabilities and protocols in place. Research institutions and look for the following:

• FDIC or NCUA insured – This ensures funds are protected in case of bank failure. Avoid any institution not federally insured.

• Positive reviews – Check third-party sites and consumer reports for overall satisfaction and security features. Beware of numerous complaints.

• Updated technology – Look for advanced encryption, firewalls, and fraud monitoring capabilities. Read about their cybersecurity policies.

• Limited breaches – While any company can be breached, minimize risk by selecting those with relatively few historical security issues.

• Multi-factor authentication – Select a bank utilizing multi-layered authentication for enhanced account access security.

• Text/email alerts – Real-time notifications of account activity provides monitoring against fraudulent transactions.

• Credit monitoring – Some banks provide identity protection services to alert on suspicious new accounts opened in your name.

Use Strong, Unique Passwords

Weak passwords leave your accounts highly vulnerable to hacking. When creating passwords:

• Avoid dictionary words, names, birthdays or anything easily guessed.

• Use random combinations of upper and lower case letters, numbers, and symbols.

• Ensure unique passwords for each financial account. Re-using passwords is risky.

• Consider using a password manager app to generate and store strong, randomized passwords.

• Change passwords frequently, at least every 90 days.

Recognize and Avoid Phishing Scams

Phishing scams attempt to steal login credentials and personal information via email, texts, calls or fake websites posing as legitimate institutions.

• Do not click suspicious links or provide information in response to unsolicited requests.

• Verify the senders name, domain, email address, grammar, logos, and branding on correspondence. Errors often indicate scams.

• Login directly to your bank’s website by manually typing the URL vs clicking emailed links.

• Never provide full account numbers, PINs, or passwords to incoming calls or emails. Legitimate agencies will not request this over the phone.

• Contact the institution directly using an official number to report suspicious activity. Don’t use contact info provided in the questionable correspondence.

Avoid Public Wi-Fi for Banking

Public networks at coffee shops, hotels, airports and other locations can easily be hacked. Never access your accounts on public Wi-Fi. Instead:

• Bank via your cellular network which is generally more secure.

• If you must use a public network, enable your phone’s hotspot to route traffic through your private cellular connection.

• Use a VPN (virtual private network) which encrypts data and masks your online activities when on public networks.

Monitor Accounts and Enable Alerts

Routinely check your accounts and statements for unauthorized transactions. Prompt reporting can limit liability for fraudulent activity in many cases.

• Set up text or email alerts offered by your bank to receive notifications whenever your accounts are accessed or when transactions exceed thresholds.

• Review monthly statements carefully and report discrepancies immediately.

• Monitor your credit via annual free credit reports and services providing identity alerts for new accounts opened in your name.

Use Multi-Factor Authentication

Multi-factor authentication requires providing two forms of identity verification when logging into accounts, making the process far more secure. Options include:

• Codes sent via text message or email in addition to passwords

• Biometric scans like fingerprints or facial recognition

• Security keys – small physical devices that connect to mobile devices for identity confirmation

• One-time passcodes generated by standalone authenticator apps

Maintain Antivirus and Browser Security

Cyber criminals distribute malware to infect devices and steal banking credentials entered online. Precautions include:

• Using reputable antivirus software on all computers/devices and keeping it updated

• Avoiding downloads from unrecognized sources which may harbor malware

• Installing browser extensions that block dangerous sites suspected of distributing malicious software

• Disabling automatic password storage in browsers

Limit Personal Information Shared Online

Oversharing on social media provides hackers clues to profile you, phish credentials, or steal identities.

• Do not post full birthdays, home addresses, mother’s maiden name, or other security question answers publicly online or on social media accounts.

• Limit sharing information like phone numbers, places frequented, vacation plans etc.

• Adjust privacy settings on social platforms to limit visibility of posts and profile details.

• Periodically search your name online to identify and remove exposed personal details.

Secure Mobile Devices

Given our reliance on mobile banking apps, secure your smartphones and tablets.

• Use screen lock passcodes, fingerprints or facial recognition to restrict access if devices are lost or stolen. Avoid pattern locks which are easy to decipher.

• Download applications only from official app stores like Apple App Store or Google Play Store. Third party sites have a higher risk of compromised apps containing malware.

• Keep operating systems and apps updated with the latest security patches.

• Avoid storing banking passwords or usernames on mobile devices or writing them down where they can be accessed if stolen.

Shop Safely When Bank Accounts Are Linked

When making purchases online and funding them via connected bank accounts, take precautions:

• Ensure websites use secure HTTPS protocol and look for padlock icons by web addresses.

• Be wary of great deals from retailers you haven’t heard of which could be fraudulent.

• Use credit cards rather than direct bank account links, when possible, to limit access to funds if merchants are compromised. Monitor charges routinely.

• Never save banking passwords in browsers if prompted on third party sites.

Restore Compromised Accounts

If you suspect accounts have been compromised:

• Immediately contact your bank and inform them of the issue. Request to reset all account passwords and multi-factor authentication.

• Closely monitor accounts for fraudulent activity and report unauthorized transactions to limit losses from theft.

• Consider requesting a new account number from your bank to fully block access.

• Place security freezes on credit reports to prevent new accounts being opened in your name via major credit bureaus.

• File police reports regarding any identities or funds stolen via online banking fraud.

Take Control of Your Online Security

While cyber threats continue evolving, applying vigilance, common sense and proactive safeguards can allow you to fully utilize online banking with greatly reduced risk. Choosing reputable providers, avoiding scams, securing devices, monitoring activity, and utilizing identity protection services are keys to protecting your financial livelihood in the digital age. With proper diligence, consumers can benefit from our increasingly connected world while keeping sensitive data and hard-earned money safe.