Online banking has become a very popular and preferred method of viewing account balances, paying bills, transferring money between accounts, applying for loans, and managing credit cards from the privacy of your home and at your convenience. With the added benefits associated with online banking comes the matter of online banking security.
Before creating an account with an online bank, verify the bank's credentials with the Federal Deposit Insurance Corporation (FDIC) Web site. The FDIC is an independent agency created by Congress and part of their mission is to insure deposits and supervise financial institutions. The FDIC has a searchable database of federally insured institutions easily found by clicking on the "deposit insurance" tab on their home page. A database search will quickly give you some pertinent details about a bank including verification that the bank is still in operation, whether or not the bank is insured, documentation of any name changes or mergers and will also provide you with a list of branch locations. The FDIC also provides a list of failed and closing banks to enable consumers to make informed decisions about financial institutions.
Just as you would expect to find an armed security guard inside your local bank, online banks offer security measures to keep your financial information secure. The encryption technology is the most commonly used manner to secure Web sites. Encryption randomly scrambles the data exchanged between your computer and the online banking Web site. The current standard is 128-bit encryption, which makes it nearly impossible for hackers to crack.
The way to know that you are on a secure Web page is very simple. Look at the URL in the address bar of your browser. If the URL starts with "https://", you are on in a secure environment. If the URL starts with "http://," and there is no "s" it is not a secured page and not safe to submit personal data.
Another way to verify that you are on a secure Web page is to notice that there will be a yellow locked pad lock in the lower right corner of your browser window.
It is important that you keep your login details private. Never write down or share your password or PIN number with anyone. Never store your login information in your browser or in other files on your computer. It is wise to choose passwords that are not easy to guess and do not contain your name, birthday, Social Security Number, or names of your children or pets. It is also a good idea to regularly change your login password for added security.
Another critical safety measure is to remember that your bank will never send you e-mail or contact you requesting you to verify your login information or any other personal information. The best practice is to use only your bookmarks or favorites to access your bank's Web site and never click through any link supplied in an e-mail message. If you do need to contact your bank, use the phone number listed in the telephone directory. Never rely on phone numbers or other contact information supplied in an e-mail message.
Check your online banking and credit card accounts regularly to ensure that all transactions are legitimate. If you do have some discrepancies make sure that you report those to your bank immediately.
When you are finished using your online banking account, remember to log out and close your browser to be sure that the secure session has been terminated completely. This is especially important if you are using a shared computer or one that is available for public use such as a computer located in a library or Internet cafe.
Frequently check to be sure that your computer operating system, firewall, anti-spyware and anti-virus software are updated. This can help insure that you have the latest security available for your computer and that you are adequately protected.
Overall, online banking is a very safe and convenient method of managing your finances. However, just as you would take safety precautions in a traditional offline bank or at an ATM, doing your part is necessary to minimize the risks and keep your financial transactions safe online.