Banking online is one of the best services ever offered by financial institutions to keep pace with the demands of its customers today. Banks and financial institutions can use the web to offer products and services and provide greater communication with their clients.
With the Internet continuing to expand, banking online was a natural step. If you do your banking online, what are your guarantees with respect to privacy and security? Are there unsafe banking practices to avoid? Are there scams out there?
Tips for safe banking over the Internet
1. There are traditional banks as well as online banks that have no physical address. Do your homework. Make sure the bank is legitimate and any deposits you make are federally insured.
2. Read the banks web site that describes the institution. You should find out the bank history, the official name, headquarters address, and insurance coverage from the FDIC. Look for the FDIC logo right on the web site.
3. Watch out for fraudulent web sites. These are copycat sites that use a name or web address very similar to, but not exactly the same as a prominent institution. Their intent is to lure you into clicking onto their web site providing them with your account number and password. Take extra care when typing in your banks web site address.
4. Links to other sites. Some banks will provide links to other merchants as an added convenience. Be aware that these non-financial links are not FDIC insured.
5. Protect your privacy. On the banks web site, you should find a copy of their privacy policy. You can find out what information the bank keeps about you and if it shares that information with any other company.
6. Protect your financial information. Find out how the bank safeguards your account information, your credit cards and your Social Security Number. There are many security features available including the following:
- Encryption: The process of scrambling private information to prevent unauthorized use.
- Passwords and PIN numbers: Use when accessing your account.
- General security on your computer: Includes virus protection and physical access controls.
These suggestions and tips might take a bit of time to research, but will add mountains of peace of mind to you as a consumer wanting to do your banking online. Your bank and Internet service provider may have more information about how to protect your privacy online.
