Online Banking – Is It Safe?

Date February 3, 2009

I recently read an article on MSN Money about the safety of online banking. There was a story about a business owner who had about $90,000 stolen from his online banking account. There were others who were saying they were skeptical about online banking. Online banking fraud is rare and there are so many reasons why online banking is a good thing – you can save time, money, and do your banking when it’s convenient for you.

Online banking is really only ten years old, though it seems like we’ve been using it forever. I can tell you, firsthand, that financial institutions take every step necessary to ensure that your online banking experience is fast, convenient, efficient, and most of all, safe.

Some financial instutitions have spent millions of dollars adding more layers of authentication, toughening encryption schemes and going after and shutting down fraudulent bank sites.

Aside from hackers, one of the most popular scams are phishing schemes that duplicate financial institution websites and ask customers to log on to their accounts. Others send e-mails, purportedly from bank employees, asking for sensitive financial information. Both scams are designed to steal user IDs and passwords as a customer types them in, giving a cyberthief access to the person’s financial accounts.

What can you do to protect yourself? Here are some tips from MSN Money on how to protect yourself when using online banking:

  • When logging on to a bank or credit union website, look closely at the site’s URL (web address) to make sure it matches the bank or credit union’s name. A secured URL will begin with “https://” and be followed by the bank or credit union name. Make sure the padlock icon is displayed in a corner of the site before you log on.
  • Log on to online banking only from a secure computer. Never log on from a public computer in a hotel, cafe, or library and be carefuly when logging on to unknown networks on a laptop.
  • If you get a warning e-mail, call your financial institution – don’t click on any provided links.
  • If your computer is acting strangely – for instance, reacting slowly or getting pop-ups – avoid using it for online banking until you can get it checked out.
  • Keep anti-virus and anti-spyware software up to date.
  • Install and maintain a firewall.
  • Never respond to any e-mail that requests personal information. MCCU will never solicit personal information via phone or e-mail. If you have any question about a suspicious e-mail or phone call, don’t act on it; contact your financial institution right away.
  • Be leery of fly-by-night, Internet-only banks with high interest rates on savings or checking accounts. Make sure the bank is FDIC-certified and is insured.
  • And, most importantly, use a different user name and password for each financial account. The password should be complex, with numbers and symbols, and changed regularly.

Online banking can be a very satisfying experience, especially when you work full-time and have a family – time is precious, so checking accounts online, or making transfers or loan payments online can save you time, and money. Use these tips to protect yourself, make sure your financial institution’s online banking is safe and secured, and you’ll find that you can’t live without it.

For more information on MCCU’s Online Banking, click here.

Questions or Comments? E-mail me at blogger@matadorsmoneymatters.com.

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