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Online Banking Security: 10 Tips From Experts

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While digital banking, including online and mobile banking, offers great convenience, there are potential risks of exposing your financial and personal information.

Be aware of potential threats like phishing scams, data breaches, and unauthorized access.

Preventative measures, such as staying informed of recent scam patterns, using strong passwords, and avoiding using public Wi-Fi, significantly ensure online banking security.

Online banking has become an essential part of our financial lives, allowing us to manage money and make transactions from anywhere with an internet connection. However, while it offers convenience and accessibility, it also introduces potential risks. 

According to the Ponemon Institute, fraudulent online transactions result in an average loss of almost USD 4 million for surveyed businesses. 

This article offers 10 practical and effective online banking security tips to help protect your hard-earned money, so you can enjoy the convenience of online banking without worry. 

Why is Online Banking Security Important?

Online banking security is essential to protect your confidential information and prevent unauthorized access to your bank accounts. Ensuring the security of your online and mobile transactions can prevent you from these consequences:

  • Financial loss: Hackers can use your login credentials to access your accounts and make unauthorized withdrawals or transfers.
  • Identity theft: Your stolen personal information can be used to open new accounts, apply for loans, or make fraudulent purchases.
  • Lost time and stress: Dealing with the aftermath of a data breach or identity theft can be time-consuming and stressful.

While trustworthy banks, payment service providers, and payment gateways typically offer secure online payment platforms, relying on this technology alone is not enough to protect your data. Hackers are constantly looking for vulnerabilities in these digital systems, with over 353 million people being victims of personal data breaches in 2023.

 10 Online Banking Security Tips

Protecting your sensitive information while still enjoying the convenience of online banking is easy. Here are the 10 expert tips on how to stay safe while banking online.

1

Set Strong Passwords

A password or passcode is the first line of defense against unauthorized access to any type of account, from email to cloud storage and bank accounts. 

When setting a new password, avoid easily guessable ones that are based on personal information like your birhdays, or contain a common sequence like 1234. Instead, create a strong password from a memorable phrase or sentence, like “Let’s go fishing,” and start from there.

Here are some dos and don’ts when creating passwords:

Dos of password management

Dos

  • Use a phrase or sentence rather than a single word
  • Include numbers and special characters, such as an exclamation mark
  • Mix upper and lower case letters
  • Examples of strong passwords:
  • Fishinginflorida!127
  • 12O@tmilklatte21
  • NoSugar_please64!*

Don'ts of password management

Don'ts

  • Use a common combination, such as qwerty and 1234
  • Use the same password for everything
  • Use personal information, such as your date of birth or name
  • Write down your passwords
  • Examples of weak passwords:
  • 1234abcd
  • 08082024
  • password
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Disclaimer: These are examples of strong passwords only. Do not use them as your actual password. 

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Password is the first line of defence as your door lock. The stronger the lock, the harder it is to break in.

Pankaj Verma, Chief Technology Officer, Statrys
Pankaj Verma
Chief Technology Officer at Statrys
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quote

2

Enable Multi-Factor Authentication

Multi-Factor Authentication (MFA) or Two-Factor Authentication (2FA) is a security measure that requires you to verify your identity to access your online banking accounts after entering your password. The identification methods include:

  • One-time password (OTP): You will be asked for a code sent to your registered mobile number or email address, usually as a text message. Some codes may also expire after a short period of time.
  • Push notification: You'll receive a push notification on your mobile device asking you to approve or deny the login attempt.
  • Biometric authentication: You’ll have to provide fingerprints or do a facial scan on your mobile phone to log in. 

For example, Statrys business account holders will receive a push notification to confirm the login on the mobile app that is paired with the account. This is an extra step to ensure that you are aware of every login attempt, and can deny any unauthorized access. 

A screen of MFA on the Statrys mobile app

While most banks and financial service providers require MFA as a security measure to access online and mobile banking services, you may have to enable this by yourself in some cases. Also, ensure that your mobile device allows the app to send notifications.

3

Beware of Scams

While transactions via online payment methods and platforms are generally secure, there are various tactics that scammers and hackers use to trick people into revealing their personal and financial information. 

The most common form of scam is phishing, which accounts for 90% of data breaches. Phishing attacks involve scammers tricking victims into giving their private information, including social security numbers, by clicking on links, downloading files, or opening attachments in emails or messages. 

Phishing scams are often under the disguise of a legitimate conversion, with 96% of the attempts sent via email. You might be tricked into believing that you are “updating your information” on your bank’s platform, but it is, in fact, a fake webpage set up by scammers to obtain your information. 

Here’s what a phishing email generally looks like:

Example of a Phishing Email:

[Subject: ⚠️Urgent: Your Bank Account Security Alert]

Dear Customer,

We have detected suspicious activity on your bank account. To protect your funds, please verify your account information immediately by clicking the link below:
[file://suspicious/URL]

Your account will be suspended if you do not take action within 24 hours. Thank you for your immediate attention to this matter.

Sincerely,

Head of Security Team, Your Bank

magnifying-glass-green

Tip: Stay informed about the latest scams to protect yourself. Most banks and financial service providers send newsletters to keep their clients updated about recent scam attacks.

quote

Phishing emails and messages often look convincing, but there are usually telltale signs. I always look for red flags like spelling and grammar mistakes, generic greetings (like “Dear Customer”), and suspicious links.

Michel Ashely, founder of Richiest.com
Michael Ashley
Former Citibank Chief of Staff and Founder of Richiest.com
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quote

Q&A

How do you protect yourself from scams?

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Protecting yourself from scams starts with being cautious and informed. I make it a habit to double-check any unsolicited messages, emails, or phone calls that ask for personal information or immediate action. It’s important to be skeptical as scammers often create a sense of urgency to pressure you into making a quick decision.

What should you do if you are under attack?

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4

Sign up for Notifications

Real-time notifications can help you detect suspicious activity, such as unverified transactions and failed login attempts, in case your information gets stolen or hacked. Many banks also provide SMS notification services, so you can be alerted even when offline.

Getting notified of suspicious activity means you can contact your bank or account provider immediately to cancel your card or lock your account to prevent further unauthorized transactions.

5

Avoid Public Wi-Fi

Free public Wi-Fi is convenient, especially when you are traveling abroad and do not have access to cellular data. However, 43% of people have had their private information stolen through public Wi-Fi networks. This is mainly because those networks are often unencrypted, meaning your online activities, including online banking transactions, can be intercepted by others on the same network.

If using mobile data is not an option, connect to a virtual private network (VPN) when using public wifi to make online transactions, including online shopping and activities that involve you providing payment details. 

quote

Online security in online banking can be protected by using secure networks. Never do banking over public Wi-Fi, since this will compromise the security levels due to its high vulnerability to attacks.

Jacob Kalvo, Co-Founder & CEO at Live Proxies
Jacob Kalvo
Co-Founder & CEO at Live Proxies
IconLinkedIn
quote

6

Regularly Monitor Transactions

Regularly monitoring your financial activity is a good practice to ensure online banking security. By keeping a close eye on your transactions, you’ll be able to identify any suspicious activity that may not come from you, such as high-volume transfers or online purchases in foreign currencies. It can also help you to report fraudulent transactions to financial institutions or relevant authorities immediately.

quote

Monitoring your account activity is a small investment of time for a big payoff in cybersecurity. It’s a proactive approach to prevent financial losses and protect you from fraudsters.

a photograph of Vincent Cloarec
Vincent Cloarec
Payment Manager at Statrys
IconLinkedIn
quote

7

Check For HTTPS

When visiting web addresses, particularly those where you’ll be entering sensitive information like login credentials, account numbers, and card numbers, ensure the URL starts with "HTTPS," which indicates that the website uses Secure Sockets Layer (SSL) to protect your data. To be safe, avoid clicking on links or downloading attachments from suspicious emails or messages that may try to replicate your bank’s website. 

8

Only Trust Authorised Apps

To avoid installing malware on your mobile devices, download only authorized apps from official stores, such as the Apple App Store or Google Play Store. Also, verify the developer and read reviews to ensure that it is the right application. 

It is also important to review the app’s privacy policy and the permissions it requests. Be cautious of mobile apps that ask for excessive permissions, especially those that don't seem necessary for the app's functionality.

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Caution: Beware of malicious pop-ups that contain buttons or links that automatically download malware when clicked. 

9

Keep Your Software Updated

Using reliable anti-virus software and a strong firewall is a good investment, especially if you regularly rely on digital banking. However, there are still rare cases in which hackers find a hole in the system and are able to access it.

Keeping your software and mobile banking apps up to date with the latest version can ensure your online bank account is protected. Software developers typically monitor their products for weaknesses and often release updates that strengthen the security features of the underlying operating systems. 

10

Use Secure Devices

It is crucial to only use a trusted device for online banking, like your personal mobile phone or a dedicated device for digital banking purposes, to avoid entering passwords on multiple devices. Ensure your device is protected with a strong passcode and security measures to prevent unauthorized access to digital banking apps in case your mobile phone gets stolen.

Lastly, avoid making transactions or inserting any sensitive information, such as your credit card or login information, on a public computer, as it might have a virus installed or accidentally store your information.

Bottom Line

Online banking security is essential to protecting your account information and other sensitive data. While modern technology offers a certain level of protection when making online transactions, it is important to remain proactive and stay one step ahead of cybercriminals. 

FAQs

How can I be safe when making online transactions?

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There are many ways you can ensure online payment security, including using strong passwords, enable multi-factor authentication, and avoiding public Wi-Fi.

What is the safest device for online banking?

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How do banks ensure security?

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Is home Wi-Fi safe for online banking?

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