While the advent of technology has brought about many beautiful developments in our lives, it’s also given us new dangers to be aware of. Since more and more people have started to use computers, cyber-attacks and the like have been taking place worldwide.
Of course, when people think of cyber attacks, they might think of things like mass hacking and shutting down entire cities at the push of a button. While this may sound like an awesome sight to behold, these are things that you might only see in Hollywood. Unbeknownst to many, digital and technological-related attacks are more common than you might expect.
If you’ve had an email account in the earlier decade of the 2000s, you might remember receiving an email from a Nigerian prince who wanted to give you some of his money. Nowadays, you’d already know that it’s a scam to get your personal banking information.
However, scams and tricks like these are still prevalent and in more improved forms. Moreover, many people still fall victim to these attacks and scams.
With that in mind, how is something like online banking safe from these incidents? Considering that this is one of the many aspects of our everyday lives that have gone digital, it’s valid that you should worry about whether or not you could fall victim to these types of things.
Fortunately, online banking is surprisingly safe. What’s more, there are ways to keep yourself even safer!
The Risks Of Online Banking
Before we talk about how online banks are safe, it’s essential to know the risks first. That way, you can better understand how banks do their part to protect their customers. So, with that in mind, what are the risks that come with online banking?
Well, these can be summarized into two main risks. The first would be the risk of losing your money. Of course, this risk also comes with doing your banking the traditional way.
However, with how advanced and sophisticated technology is becoming, cybercrimes have still become rather prevalent. As such, people can siphon out money from people’s accounts–which can happen a lot more often online if you’re not careful.
Aside from losing your money to a cyber attack, there is also the risk of someone getting your personal information. Now, they could also use your information to use your bank account. However, losing personal information to someone online can also cause a whole host of other untoward events, such as identity theft.
These are just some of the many risks that many people may face when they do online banking. However, it’s worth noting that while there are risks, there are still ways to help minimize them and make things safer for you.
After all, while things like hacking and phishing–attempts to get your personal information from you–are getting more sophisticated, so are the things that banks do to protect themselves and their customers.
Ways Banks Protect You
Banks have gotten with the times, too, adapting advancements in things like technology and security. So, you can expect they’ve done everything they can to ensure that something like their systems and online banking applications is safe. Considering that their line of business has to do with money, it only makes sense that they do.
With that in mind, what are some ways banks protect online banking customers?
Encrypt Apps And Websites
One of the most common ways that banks–and most other websites for that matter–protect their online platforms would be through encryption. Now, this may sound rather complicated, but it’s something that’s at least easy to understand.
When you have something like a website, you essentially have some data to control things on your website. From the aesthetic aspects to the more functional things like security, data plays a vital role here.
Now, typically, you’ll need to have access to these things. But, when a website is encrypted, access to these important data bits is essentially kept secret to people without authority. It’s like a password of sorts.
This may not be the most accurate description, but it at least helps you understand that these banks do what they can to protect your data. Only they have access to it, and anyone else who tries to access it will have difficulty figuring out how to do it. What’s more, banks spend a lot of money on these services.
So, you can expect these websites to be encrypted with the best possible software and methods.
Authentication And Validation Methods
Aside from keeping the websites secure from cyber attacks, banks also try to prevent other people from accessing your accounts. They do this through log-in authentication methods.
If you use Google a lot, you may be familiar with this. If you try accessing your account from a different device, Google will immediately notify you that someone is trying to access your account from another device.
It will then prompt you to confirm whether this is you or not. This is typically known as the two-step verification method. Many online banks do something similar!
If you try to log in to your account, sometimes you may receive a One-Time Password that you’ll have to key in before you access your account. This could be sent to your email or phone via a text message.
This helps ensure that you’re aware of the log-in attempts to your account and prevent unauthorized persons from accessing it even if they had your account details!
Ways To Protect Yourself
While banks do what they can to help assure you of a safe online banking experience, sometimes there’s only so much they can do. This is because even if they exert the effort to make a safe and secure site, you could still make a few mistakes when going about your banking. So, it’s also essential to do your part to ensure you bank safely and responsibly.
So, how can one protect themselves while doing their online banking?
Stay Informed
One of the best ways to protect yourself from online banking-related scams and the like is to keep yourself informed. Scams are getting more creative and realistic nowadays. Phishing attempts disguised as “official” emails asking for your log-in information are among the most common scams many people fall victim to.
With that in mind, it’s essential to stay informed about these scams and which emails are actually from your bank and which ones aren’t. Fortunately, banks do their part and send periodic reminders telling you they would never ask for your log-in information. So, it’s always good to stay vigilant and stay informed of new forms of scams and phishing attempts.
Get A Bank That Insures Your Deposits
This may seem redundant, mainly because this is practically a standard for most banks, but ensuring your bank insures your deposits is another way to protect yourself. Of course, this also doesn’t seem like a preventive method of protecting yourself from the risks that come with online banking.
However, by ensuring that your bank insures your deposits, you can at least have peace of mind knowing that you’re safe if the worst happens.
Depending on where you’re from and who’s covering it, the amount that your bank is willing to insure will vary. For example, in the US, the Federal Deposit Insurance Corp. covers up to $250,000 if a customer’s money is lost. For a lot of people, that’s more than enough!
Is It Still Worth It?
While online banking seems scary, it’s not as frightening as it’s made out to be. Of course, there are risks that come with it. However, almost everything also comes with risks. What’s more, these are risks that aren’t guaranteed to happen.
So, with that in mind, online banking is still worth it as it’s still safe to do! Banks spend lots of money to ensure that their customers and their money are kept safe and secure, and online banking is no exception.
From having sophisticated technology guarding your data to the verification methods they employ when you try to log in, these banks do what they can to keep your transactions secure. This protects them and yourself!
Online banking has helped make people’s lives more convenient, giving people the ability to make transactions at the tap of a screen. It saves people time and opens up a whole new world of convenience for them.
The benefits of online banking far outweigh its risks, so it’s still a feasible and practical option to consider if you’re looking to make your banking life more convenient!
