Online Banking Security: 10 Tips From Experts

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. 

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.

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.

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:

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. 

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.

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:

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.

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. 

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.

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. 

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.

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. 

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.

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.