The use of online banking is proliferating. Mainly due to the Covid-19 pandemic, people switched to digital banking at a fast pace. According to a recent forecast of Statista, around 1.9 individuals were using online banking services, and this figure will reach 2.5 billion users by 2024. Although the use of online banking services is becoming common, but security concerns are also rising.
That is why DigitalCruch presents a detailed guide with readers about maximizing online banking security.
How Online Banking Functions?
In typical banking, account holders need to 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 an account online. Similarly, it is smooth to administer banking operations through internet banking.
- Users don’t have to restrict their operations according to banking hours when they depend on internet banking. Indeed, with SWIFT system, they can pay anyone, anytime, anywhere in the world. This gives great mental relief to users.
- By the same token, the interface of the banking application is straightforward to use for all of the users. They also don’t need to carry and store the 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, it could be disastrous to pay bills and purchase daily food items in case of 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.
- It could be precarious if you leave blueprints of your banking details on different devices by the same token. These details could be compromised if you don’t care about the safety of login credentials.
- Phishing, keylogging, pharming and identity theft are also potential security risks that are associated with digital banking.
Effective Tips to Maximize Online Banking Security
Finally, DigitalCruch is going to discuss one of the most effective tips to maximum online banking security. Here we go:
Use Unique & Strong Passwords
If you are using your personal data like birthdate, address, your or your loved ones’ names, then the security of your bank account could be compromised anytime. Identically, using common words, numbers or letters in sequence, short passwords, phrases and phone numbers is also prohibited by security experts.
It is always suggested to use long passwords and add any numbers and capital letters. To avoid security threats, you can probably make these kinds of passwords ‘SSgyfbU9087ffqty’ or ‘77635#Ghd89,gd90wwgt’.
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 will have to enter a security code that is generated on your mobile number or application that you link with your account while enabling 2-factor authentication.
Use VPN Service
Usually, account credentials are 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. Withal, if you are not familiar with how it works, then you can sign up for a trial on a reliable virtual private network.
In this way, you can 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 keep your banking notifications, emails and alert on all the time. They will keep you aware 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.