Online Banking Is Secure, So It’s Safe. Right?

Your bank offers secure online banking, so why should you worry…

Most people see the ads for “Secure Online Banking” and think it’s safe to use, and there won’t ever be a problem. After all, banks can afford the best resources money can buy. A reasonable assumption about a bank.

But you may be alarmed at this statistic…

In 2009, Americans lost approximately $559 million to various forms of online theft from bank accounts. That figure is according to the Internet Crime Complaint Center. The 2009 amount is more than double the amount for 2008 in which ‘only’ $268 million was stolen via the net.

Sean Sullivan, a security adviser with F-Secure - an internet security firm, made the following comment: “Last year there were more online bank robberies than there were actual on-site bank robberies. Banks have become very proactive in protecting accounts from hackers, but it’s still quite a large problem. We see all types of new attempts every day.”

Hackers are designing trojans specifically targeted toward banks, and these trojans constitute the largest threat to online banking customers. According to Sullivan, “Some more advanced types of trojans can make fraudulent transfers and drain your account while you are logged on to the account online.”

But how can you tell if your bank is safe, or at least reasonably well-protected?

The way you can tell doesn’t offer much of a warm fuzzy, and it even seems a bit of a crude indicator. But here goes…

The more aggravation you encounter when you log into your online bank account, the more secure it is. What? If your online bank website makes you jump through many hoops in the form of questions, and wants you to input multiple passwords, which mine does not, then that means the level of security is higher.

We hope you feel better now.

Sullivan offers this, “The more layers you have before you get to your account, the safer you are.”

What you can do to protect your bank account:

  • Make sure you’re home PC has the suite of security apps including firewall, anti-spyware, anti-virus, and any other security software. Plus - keep it all updated and current.
  • Never access your online bank account, or any financial-related account, from a shared computer.
  • Always report anything suspicious on your bank account, and perform a regular review of your statement.
  • Be sure to use the strongest password possible. Use all the available spaces your bank will let you and include numbers, odd spellings, upper and lower case.
  • For wireless connections, you brave soul, make sure your connections are encrypted. Never use a public network such as in public places.
  • If you have a LAN set-up at home, see the previous post about network hacks. Change your router password ASAP.
  • Be sure to log-out, fully, after every online banking session.

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