4 Rules for Safer Online Banking
KEY POINTS
- Online banking is the height of convenience, but if you're not careful, you could accidentally give out access to your account information.
- Create strong passwords and enable multifactor authentication for banking websites and apps.
- Set up alerts for suspicious activity and don't bank while on public wifi.
Even just in my lifetime, the advances that technology has brought to banking and personal finance are absolutely staggering. When I got my first-ever bank account as a teenager, I had to visit a bank branch and sit down with a representative to open my account. And it took close to an hour. But the last time I opened bank accounts (a savings and checking account with an online-only bank), it took mere minutes and I could do it from the comfort of my home office, without even putting on shoes.
Thanks to the rise of the internet, you can likely do most or all of your banking completely online these days. The last time I visited a physical bank branch was a few months ago, and it was only to use the ATM to take cash out of the checking account I have with a traditional bank. Unfortunately, while online banking may be convenient, it is not without security risks. Here are a few rules to read and heed, so you can keep your money safe.
1. Use strong passwords and MFA
While it may be tempting to create an easy-to-remember password for your banking app or bank's website, resist the urge. Instead, you want to use a strong mix of upper and lowercase letters, numbers, and special characters. The longer and more complex your password is, the harder it will be for some scammer or hacker to crack. If you struggle with remembering passwords, you might want to use a password manager, which is like a digital vault to keep your passwords secure.
Enable multifactor authentication (MFA), too. This means that in addition to entering your password, you'll also need to give another piece of information that proves you are who you say you are (such as entering a code that's been texted to you).
2. Don't bank while on public wifi
If you're chilling at the airport, waiting to board a flight, you might have the urge to check your bank account balance or maybe set up some bills to be paid. Don't do this on the public wifi network -- there's no way to tell who can watch what you're doing.
Wait until you're on a secured private wifi network to check on your bank account, or use your phone's cellular data connection rather than public wifi.
3. Enable alerts for suspicious activity
This is a super easy step to secure your bank account. Most banks will let you sign up to receive text or email alerts whenever a bit of suspicious activity pops up in your account, such as a larger-than-normal expenditure or a charge at an unfamiliar store.
Getting an alert about such an event allows you to confirm that it was in fact you who made the charge -- and not some bad actor who got access to your bank account information.
4. Avoid clicking links
Phishing is a type of scam where you receive a link in an email or text message, prompting you to click and verify account details. Except it's not a legitimate link, and you've just given some of your private information to a scammer, allowing them to access your money.
If you receive a message saying something is wrong with your account, don't follow up via any links you may receive. Instead, reach out to your bank yourself and see what's up. And while you're at it, be sure you're going to your bank's legitimate web address. Phishing scams are very common -- according to Forbes, there were over 500 million reported in 2022.
Managing your money and banking activity online means you can do it from anywhere, and at any time of day. But don't forget to keep your security top of mind when you use your bank's mobile app or website.
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