A lot of people who would benefit from using internet banking do not do so because they are afraid of having their financial security compromised. Stories of identity theft, fraud and straight out theft of money abound in the media and we are all becoming increasingly uneasy about what a criminal could do with our personal information. What most people don’t realize is that their internet banking provider has most likely ensured a very high degree of online security. The bank websites are actually very safe and newer safeguards are being employed constantly.
Financial loss from online banking usually occurs at a personal level. Inadequate protection on your home computer can compromise your security by allowing computer virus access and poorly protecting your online banking password, pin and other information that could allow someone to logon and use your account. However, they can’t withdraw cash and online transactions can be traced. So as long as you are careful, your bank accounts will be safe. In other words, your internet banking provider’s security isn’t the problem.
Most financial institutions use secure financial service networks which use technology that encrypts the data it receives online. This means that no one else can see your confidential information. Secure Sockets Layers or SSL technology is commonly used and compatible with the most commonly used internet browsers such as Internet Explorer and Netscape Navigator. You can identify the presence of this security by the tiny yellow padlock which appears in the bottom right hand corner of your computer screen.
Other security precautions employed by internet banking providers include secure logins, limited logins, and limited sessions. By limiting the number of logins allowed per day and the time allowed for sessions, it becomes more difficult for a criminal to break your login code or see your banking information if you walk away from your computer and forget to logout.
However, your internet banking provider cannot control what you do. You need to make sure you have a good firewall and anti-virus software installed on your computer and keep it updated. If you monitor your transactions and check your online statements for any activity you don’t recognize so you can deal with problems quickly, keep your personal banking information confidential, protect your computer from malicious attacks and are wise in responding to emails requesting personal banking information, you will be able to enjoy the advantages of online banking without the few disadvantages that come from carelessness and naivety.