Online banking allows people to undertake traditional banking activities, like account transfers, payment of bills, and requests for stopping payments, etc., via the Internet. Customers can also keep tabs on the account balance from the comfort of their home.
In this day and age, online banking has become an indispensable facility for people who are hard pressed for time and find it difficult, if not impossible, to reschedule their busy lives for the sake of making a few withdrawals and deposits. However, there are a few issues that have to be borne in mind in order to avoid being cyber-scammed.
How Safe is Online Banking
This question often bothers the customer, who appreciates online banking but has a few misgivings about security. An online bank account is accessed with a username and password. On divulging this information to an impostor, the customer ceases to have control over the account. The username and password can be obtained by a trickster in one of these ways.
Phishing is the attempt to acquire potentially sensitive information via email, instant messages, cell phones, or fraud websites, social networking sites.
Generally, a link spoofing the authentic bank website is sent via email by scammers, to unsuspecting customers forcing the latter to divulge confidential information like their username and password.
Internet address redirection, which results in redirecting customers to a copycat website that closely resembles the original site, occurs when a malicious software has sneaked into the computer.
Safe Online Banking Practices
One should avoid accessing the account from public computers. One should also avoid accessing the account via a public Wi-Fi from one's laptop. Moreover, a home network ensures safe and secured online banking services.
Choosing Security Questions
Most bank sites allow the user to choose security questions and answers in addition to the username and password. One will be forced to answer this question in case one is accessing the account from a different/unrecognized computer. This provides additional security.
In addition to these, one should remember that not all banks operating on Internet are insured by Federal Deposit Insurance Corporation (FDIC). FDIC insured banks guarantee deposits less than USD 250,000. Many banks, that are chartered overseas, are not FDIC insured. To determine whether a bank is FDIC insured, the customer should visit the FDIC website.