Is online banking safe? – My millennial guide

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    Is online banking safe and secure? A lot of people believe this isn’t the case – you may have heard from a friend or family member that their card was flown or robbed at an ATM, or you may have experienced it yourself.

    Of course, online bank account security should be an issue for most Americans.

    So if you want to learn how to increase your banking security. In this post we will introduce you to ways to increase your banking security.

    Are hackers hacking banks?

    Online banks are growing steadily as 51% of US adults banking online. This means that a steady pace of hackers is pouring in trying to find ways to break into the system. Large financial banks have to defend themselves against thousands of cyber attacks every day.

    A recent Capital One breach earlier this year shows that a bank hacker only needs one hole to wreak havoc. You were the victim of a cyber attack that captured over 100 million pieces of information from people. A single vulnerability was all it took for the hacker to capture all of this sensitive data. This year alone, there were 3,494 successful cyberattacks against financial banks, according to reports filed with the Treasury Department’s Financial Crimes Enforcement Network.


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    These numbers would affect anyone banking online, including you and me. But does that mean you should shut down online banking entirely?

    Related: Best Checking Accounts of 2021

    Are Online Banks Safe to Use?

    The short answer is yes. Banks that are only online are safe because they have FDIC insurance. Federal Deposit Insurance Corporation is an independent federal agency that insures deposits with US banks and savings in the event of bank failure. If you’re a member of an online bank with FDIC insurance, your money is insured up to $ 250,000.

    Even if a hacker steals your money, you are protected. Your online bank must reimburse you for your losses if you report them within 60 days. This is one reason many people track their finances on a weekly basis using free money management tools like Mint and Personal Capital.

    However, this does not mean that you should not be aware of the risks associated with online banking.

    Related Topics: Understanding Infinite Banking: Does It Make Sense To You?

    Online banking risks

    Anyone banking online is exposed to these general risks. Learn more about them so you can keep your information and money safe.

    Phishing

    Phishing is a fraudulent attempt to steal your personal email and is usually done through email. Phishing people create fake websites that look real but are designed to steal your information. The goal of the phisher is to get you to click the link in the email and be redirected to the fraudulent website. Once you’ve entered your credit card, password, or other account information, the phisher will have them.

    When you check your spam folder, you are likely to see tons of phishing emails. Check if you can determine why the following phishing email is malicious:

    online banking is safe

    You may have encountered some errors – it came from a Comcast email (not Bank of America), it wasn’t sent directly to the recipient, grammatical errors, the text mismatched, and the hyperlink points to another site. How alarming is that?

    Related: 11 Best International Money Transfer Apps to Use

    Identity theft

    According to Experian, identity theft is when someone steals your personal information and uses it without your permission. There are different forms of identity theft, each of which can affect you in different ways. The most common forms of identity theft are:

    • Driver’s license ID theft
    • Social Security ID Theft
    • Medical identity theft
    • Theft of characters / criminal IDs
    • Financial ID theft

    The criminal’s goal is to get as much information from you as possible. According to CreditKarma, identity theft is tough to protect because hackers can get your information if there is a data breach. So it can happen to anyone and the effects can be harmful.

    Related: What Are Overdraft Fees And How Can You Avoid Them?

    Keylogging

    A keylogger (short for keystroke logger) is software that tracks or logs the keys on your keyboard, usually covertly so that you don’t know your actions are being monitored. So, if you click on a suspicious link or visit a shady website, your device may have a keylogger installed that records your keystrokes in order to steal passwords and other sensitive information.

    How to protect yourself

    As you can see, online banking carries some risks. So we’ve included a few tips to make sure you’re protected.

    Choose an account with two-factor verification

    Try using an online bank account that offers two-factor authentication (2FA) for added security. In 2021, many, but not all, online banks will be offering this service, which is an extra layer of protection to keep online accounts secure beyond a username and password.

    More and more websites and online banks are using this to provide additional layers of security. If you are not using it, you should check that your online bank offers it and activate it.

    Related: Never Pay A Bank Fee Again: Avoid Extra Charges And Keep More Of Your Money

    Create a strong password

    Make sure you create a strong password and that your password is secure. Using a password manager helps here as it can create strong passwords but it also stores them for you. If you don’t have a password manager, make sure you use a mix of uppercase and lowercase letters, numbers, and special characters.

    Always stay away from common words or phrases, and under no circumstances create a password that includes your name, initials, or date of birth. If your online bank allows it, you will need to change your passwords every few months.

    Use security software

    Security software is required these days no matter what you use your computer for. At the very least, make sure that you are running antivirus software that will scan your device weekly.

    This will ensure that you are protected from Trojans, keyloggers, and other types of malware that can be used to gain access to your financial information. Also, make sure you update your antivirus software so that there are no missing security holes.

    Avoid clicking on phishing emails

    Pay attention to your email before clicking anything. Phishing emails can look very real if done correctly. As mentioned earlier, this is a common practice by hackers who maliciously want to obtain your password credentials and information from you.

    When you log into “Your Account”, your username and password and ultimately your money will be used. It is therefore always safer to enter your online bank account by entering the address in your browser rather than visiting the website via a link.

    Also, watch out for unwanted phone calls purporting to be from your bank. Your bank generally wants you to answer a security question, and they never ask for passwords or PINs (they might ask for some letters or numbers from them, but in no way the whole thing).

    Monitor your bank accounts regularly

    It goes without saying that the monthly review of your bank report is a good routine as there is a need to monitor unauthorized transactions. Also, make sure you are up to date on the best credit card security tips.

    You have taken due care to monitor your online banking accounts and to take advantage of the fact that you can check in seconds from your phone or laptop that your accounts are being kept safe.

    The best apps to save real money

    We talk a lot on the phone, don’t we? Wouldn’t it make sense to save money with the best money-saving apps?

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