The use of online banking is proliferating. Mainly due to the Covid-19 pandemic, people switched to digital banking at a fast pace. Although the use of online banking services is becoming common, but security concerns are also rising.
That is why DigitalCruch presents a detailed guide to readers about maximizing online banking security.
How does Online Banking Function?
In typical banking, account holders must visit the bank branch or ATMs to conduct transactions. But online banking functions in a convenient manner where users perform distinct financial transactions through the web or mobile applications. In this regard, account holders just need to make a few clicks to transfer funds, pay bills and even connect bank accounts with financial software or payment apps like PayPal or Stripe.
How Do We Benefit from Online Banking?
Here are the core benefits of using online banking:
- Online banking enables individuals, startups, SMEs, and large businesses to open online accounts. Similarly, it is smooth to administer banking operations through Internet banking.
- When users depend on internet banking, they don’t have to restrict their operations according to banking hours. Indeed, with the SWIFT system, they can pay anyone, anytime, anywhere in the world. This gives users great mental relief.
- By the same token, the banking application’s interface is straightforward for all users. They also don’t need to carry and store invoices and recipes because the entire transaction history is available online.
- It also made transactional and non-transactional financial activities effortless for bank users, from paying bills to generating statements.
- Quick notifications, 24/7 access, on-time loan payments, integration with other apps, and fraud alerts are also exciting online banking features.
Potential Security Threats to Online Banking
With many advantages, online banking also has some potential drawbacks that we are discussing here:
- Though countries prefer cashless economies, paying bills and purchasing daily food items could be disastrous in case of a large-scale cyber-attack. Don’t you think banks and their online systems could be on the hit list of hackers? According to Citigroup, around 2.7 million USD was stolen from 3400 accounts in 2011. Hence, it is definitely an uncommon scenario but could be a potential security threat to online banking.
- By the same token, leaving blueprints of your banking details on different devices could be precarious. These details could be compromised if you don’t care about the safety of login credentials.
- Phishing, keylogging, harming, and identity theft are potential security risks of digital banking.
Effective Tips to Maximize Online Banking Security
Finally, DigitalCruch will discuss one of the most effective tips to maximize online banking security. Here we go:
Use Unique & Strong Passwords
If you use personal data like birthdate, address, or your or your loved ones’ names, the security of your bank account could be compromised at any time. Similarly, security experts also prohibit using common words, numbers, or letters in sequence, short passwords, phrases, and phone numbers.
Using long passwords and adding numbers and capital letters is always suggested. To avoid security threats, you can probably make these passwords: ‘SSgyfbU9087ffqty’ or ‘77635#Ghd89,gd90wwgt’.
Two-Factor Authentication
Using large and strong passwords is not enough. Yes, to make your online banking activities invulnerable, it is also crucial to enable 2-factor authentication. With this extra layer of security, you can’t instantly log in to your account with a username and password. To access your account, you must enter a security code generated on your mobile number or application that you link with your account while enabling 2-factor authentication.
Use VPN Service
Account credentials are usually compromised when you use unsafe devices or browsers to log in to your account. To avoid such situations, it is always recommended to proceed with a secure browsing environment under the flag of VPNs. If you are not familiar with how it works, you can sign up for a trial on a reliable virtual private network.
This will help you understand how zero-log and military-graded security features can benefit you while making online payments.
Enable Banking Alerts
On the other hand, it is also essential to always have your banking notifications, emails, and alerts on. They will alert you of any suspicious activity at the right time.
It is not rocket science to enhance online banking security. With the above tips, you can keep your digital banking activities safe from cyber and other security threats.
