Money Matey

How Safe Is Online Banking?

Internet banking has increased in popularity in recent years and for good reason, but there still remains a number of concerns and risks when using such services. So the real question here is, what are the potential dangers and how easy is it to protect yourself against them?

Below are the key risks to look out for and how to avoid them.

Phishing

Perhaps the most common in online financial scams is phishing. In short, phishing can be described as any attempt to steal someone’s username and password by tricking people through email to hand over their personal details. The most common example will arise in security warnings where a scammer will email you claiming that there has been suspicious activity on your account and then invite you through a link to update your details. Of course to update your details you have to first enter your original username and passwords resulting in the culmination of the scam. The fake sites that the emails link you to are often near identical replicas of the official sites and as such end up fooling many people into believing they are the real thing.

How to Avoid

Just remember that no reputable website will ever ask you to reveal or change your username and password. If receive an email asking you to do so, no matter how authentic it looks, approach it with extreme caution.

Insecure Passwords

If you use an insecure password to log into your bank then you’re just asking for trouble. If it’s something obvious then anyone can have a guess and gain access to your account without any much hassle.

How to Avoid

Stay away from obvious password such as 12345 or your date of birth. Additionally, anything that can someone can relate as unique to you, such as your favorite movie or sporting team, is also a bad idea. Make it at least 8 characters in length and use a mix of numbers and letters.

Spyware and Malware

Spyware and malware are malicious pieces of software that are downloaded onto your computer by tricking you into believing your accessing something you’re not. Common examples include being offered to download a piece of security software or a funny video through a pop up or download link. What actually results are any number of possible programs that can be used by hackers to record personal data.

How to Avoid

There are two key ways to keep safe from such attacks. Firstly and most importantly is to use an up to date security suite which includes a virus scanner, a reliable firewall, privacy controls and anti spam measures. Secondly, it is important to keep a tight leash on the websites that you do visit and download from. The more obscure the site is, the higher the risk you are opening yourself up to.

Wi-Fi Snooping

Wi-Fi hotspots are becoming increasing common in today’s world allowing anyone to access the internet from various locations when they are out and about. The public networks that can be accessed are never 100% safe from hackers who can look in and record what you’re doing online. Snooping is also a problem for home networks which don’t have proper security measures established. Depending on the range of your personal wireless router, anyone could potentially access your personal network within 50 meters of your home.

How to Avoid

The key lesson here is to never log into your bank account from hotpots or any network which isn’t properly secured. As a general rule, if you’re not absolutely sure, then stay away. For home networks, make sure you have a password set up on your router that uses the latest WPA security standard, not the older WEP version.

Redirects

There are many fraudulent webpage’s online that will link users to what they believe are reputable sites. In reality these links actually redirect users to copy sites which will often look exactly like the real thing. As soon as you type in your details then there’s nothing you can do.

How to Avoid

Try to memorize the exact web address of your online bank. Once you know this you should check your web browsers address bar every time you want to access your current accounts.

So is Online Banking Really Worth it?

While online banking does open you up numerous potential dangers there really isn’t any reason why it shouldn’t be used providing that proper precautions are taken. It is also important to note that most banks will reimburse you if you have been scammed. That being said, the claim process is often long and arduous and in a few minor cases where user error is clearly at fault, you will be left without anything. As long as you follow the details laid out in this article you should be able to keep you and your money safe from danger.