How Secure Is Your Banking and Financial Information?

More and more people are managing their finances via the Internet nowadays because of the ease and convenience it affords. However, there are drawbacks to every technological advance, and in the case of online banking, the threat of experiencing a security breach is real. Large banks like Chase and Citibank, as well as smaller regional banks, have been the subjects of security breaches that have cost them millions of dollars to remedy and have shaken customer confidence.

While the security situation is serious, there are some common-sense precautions, online banking customers can reduce the chances of their financial data being stolen. In addition, banks and other financial institutions are constantly improving online banking technology to improve the security of their customers’ information.

Bank Security

Bank fraud has always been an issue, even before the Internet Age, but new technology has enabled scam artists to access networks and sensitive information at a higher rate than ever before.

Current technology helps to alert the bank to fraud before major damage is done and often prevents it from happening in the first place. For example, sophisticated telecommunications advances in the last decade have given banks the ability to immediately shut down a compromised debit or credit card. Banks are also becoming more adept at thoroughly investigating potential fraud and resolving disputed transactions quickly.

Online Banking

Most people have heard about Internet-only banks that have no brick-and-mortar locations. These banks market themselves as a great alternative to traditional banks, enticing consumers with generous sign-up offers and low fees. Although most Internet banks are legitimate and provide great service at a low cost, customers should make sure they are dealing with a legitimate bank before trusting them with personal information or money.

Of course, traditional banks have also jumped on the online banking trend and now offer a wide range of services to help customers avoid the need to visit their local branch. One of the most popular online-banking features—the ability to remotely make a deposit—allows customers to deposit a paper check by simply taking a picture of it. Bank customers can also perform transfers online and use services like PopMoney and Chase QuickPay to send money to other people straight from their smartphone.

However, once a customer begins accessing their banking information online, there are some basic yet important steps they should take to safeguard their financial information. First, people should make sure they are accessing their bank’s website over a secure Internet connection, preferably from their home or another closed network. While it may be tempting to access one’s online banking while sitting in the airport or a local coffee shop, this is not the most secure method and theoretically it can expose private information to any seasoned hacker. Also, online banking customers need to check their accounts on a regular basis so that they can quickly spot any fraudulent charges.

Using Your Smartphone or Tablet for Banking

People should always use caution when accessing their financial information on their smartphone or tablet. While it can be tempting to check one’s account balances while waiting in line at the store, this is a bad idea. Aside from prying eyes that may be able to see passwords and balance information, some fraudsters frequent retail stores for the sole purpose of stealing the information of unsuspecting shoppers.

If online banking customers own a phone that has Near Field Communication (NFC), they should be extra cautious, because this technology is a scammer’s dream. Thieves have figured out a way to access NFC communication on a nearby device, thereby enabling them to steal personal data. If a person uses phone-based payment methods like Apple Pay or Android Pay—both of which store credit card information—nearby scammers can access it. Again, monitoring one’s transactions and even enabling e-receipts and notifications from the card issuer can help customers stay on top of any suspicious card activity.

Online banking technology has indisputably made people’s lives easier. But, while the technology behind this phenomenon continues to evolve, it is wise to stay alert and be diligent about protecting all passwords and private information. Only by protecting their information can people make the most of modern banking technology.