Online Banking And Your Security
October 6, 2009 by · Leave a Comment
It is hard to imagine but it wasn’t too long ago that online banking did not exist. In fact, in it wasn’t all that long ago that anything online existed. Internet shopping and Internet transactions have evolved into a safer environment for consumers. Still people want to know is banking online safe? Frequently concerns are centered around someone stealing someone else’s personal information and cleaning out a bank account online. So let’s take a look at online banking and see if your money is safe.
Online banks consider security priority one and commit extensive resources to protect the consumer against online banking fraud and identity theft. Certainly you have heard all the advertisements about identity theft and theft of credit card numbers. At the end of the day online banking and online banking transactions are secure and safe.
Perhaps what is overlooked is that traditional banking methods have their own security concerns. Think about it, your mail, i.e. your bank statements could easily be intercepted and abused. Most banks communicate a pin number, PIN, via mail. This pin number often follows an ATM card sent a few days before. Assuming you pay your bills via a paper check, you are at risk for exposing your account number, perhaps your Social Security number, and your phone number, which are often printed on the check. This does not include the potential for bank employees stealing your personal information during counter transactions.
The point is, nothing in banking either traditional or banking online is 100% secure. So how do you protect yourself against fraud and theft with online banking? Most online banks, for example Bank of America offered guarantees when it comes to the security of online bank accounts.
Clearly stated on their online bank account website is, “With our Online Banking service, you can be confident that your Bank of America accounts will be secure and protected. Our safe online banking measures guarantee $0 liability for any unauthorized activity originating from Online Banking”. That would probably be enough of a guarantee for most consumers but let’s look further at what personal responsibilities and actions we can take to secure our online bank accounts.
Obviously all online banks systems, computers are protected by firewall, and all data transfers use SSL transfer.
On a more individual level you can make sure that you maintain access and control of your own computer and limit its use to yourself. When you complete a transaction online with your bank make sure you break the connection with your bank’s computer. That sounds very simple but it is surprising how many people walk away from a computer still logged in to an online bank account.
You should regularly review your online bank accounts online so that in the event of a fraud you can report it to your bank quickly. In other words, just like you would monitor and audit a traditional paper bank account, those same managers should be implemented with your bank accounts online.
