Online banking has increasingly become the norm. Last year, Business Insider reported that about 30 percent of the U.S. population had an online-only bank account. Even more striking, a 2019 American Bankers Association survey found that 73 percent of all Americans access their bank accounts either through a website or on a mobile device. This shift from brick-and-mortar to digital has only increased in popularity during the recent COVID-19 crisis, with shelter-at-home orders making physical trips to the local bank less feasible and safe.
While online banking presents an accessible way to carry out your financial transactions, there are some cybersecurity risks involved. If unsecured, it can leave your most private financial information vulnerable to hackers.
“Having your bank account hacked or your personal and financial information stolen can create innumerable headaches,” writes Forbes contributor Rebecca Lake. “Money could be drained from your account via fraudulent wire transfers, for example. Or an identity thief could leverage your information to open credit cards in your name and treat themselves to a shopping spree.”
What are the top ways to ensure you bank safely online? First, Lake suggests that you choose a strong password. This may seem like common sense advice, but many people tend to opt for something convenient, without necessarily thinking of privacy risks. Many place easily identifying information, like names or dates of birth, in their passwords, while sticking to common phrases or easy-to-guess number combinations (think, “123”). Instead, go for longer passwords that mix upper and lowercase letters, numbers and special characters. Avoid identifying personal information and make sure you don’t store your login on your mobile banking app.
Another key recommendation is two-factor authentication. This means adding a second step to your login process. You’ll enter your login and password as usual but then there’ll be another step, like passing a security test, before you can enter your account. This could be a simple verification code sent to you via text message, for instance.
Public Wi-Fi is another hacking culprit. The easiest way to avoid getting your banking data stolen while using an unsecured wireless connection is to just refrain from logging on in a public network. Wait until you get home. If you need to access your banking information while in public, you can disable public file sharing and adhere to using websites that are encrypted. How do you know? Look for “https” in the URL. Setting up your own VPN on your device is another option.
Banking alerts sent to you about all of your banking transactions is a great way to know if any suspicious activity is going on. Also, avoid phishing scams. If an unfamiliar email reaches your inbox asking for private banking information, delete it.