How Safe is Your Online Banking Application?

According to the latest statistic information, close to 50% of the population of developed countries use online banking applications. If we speak about business this percent will be much higher. And it is totally understandable because using such a payment instrument as internet banking is really convenient.

The Major Benefits of Using Cooperative Online Banking

The list of advantages related to using an internet banking app that provides you access to electronic payments systems right from your computer, laptop, and even smartphone, can be significantly longer, but let’s try to consider the major of them:

Such payment instrument provides no need to go to the branch office, wait in queues, and make a request to the clients’ manager every time when you need to make a transaction;

One of the great payment solutions is an opportunity to create a template for each of your permanent suppliers or contractors, so you do not need to re-fill their details for every new transaction. Moreover, it helps to prevent a risk of a mistake in requisites during its filling;

All supporting documentation is stored on the online repository and clients have access to it 24/7, so you do not need to collect all checks;

24/7 access to the transaction history helps not only to control all of the expenses and receipts from any place and at any time but also to identify any unusual activities and possible fraud;

Some banks provide their new clients an opportunity to get a business checking account and their secure online banking with better conditions, such as no monthly fee, no minimum balance, and so on;

Quick money transfers between several accounts, for example, if your company has a current, deposit, and maybe even a credit account in the same bank.

But Is Internet Banking Safe for Consumers?

This question is more than important for all the individuals and legal entities who already use such virtual payment solutions or would like to start using them. People know from the news that hackers from all over the world try to steal money from accounts every single day, and this information sounds scary. But also we know that most of these attacks fail because banks work on their security systems continuously and improve them regularly.

But even though the bank provides you with secure online banking with all of the necessary safety systems and protocols, you also need to be acknowledged of the main risks to prevent their realization.

The Main Risks of Cooperative Online Banking

The most common hackers’ tool is phishing. Usually, hackers send you an email with some link inside and trick you to click on it. After you click on the link it can be two alternative scenarios:

The first scenario – the software downloads on your computer, laptop, or smartphone and collect and steal all of the personal information, such as usernames and passwords, that hackers can use to get access to your account;

The second scenario – the link leads you to the fake website of your bank that looks exactly like the original site that asks you to fill out the confidential information, that hackers will try to use to get access to your account;

The next risk is identity theft. Your personal information can be stolen by the tricks mentioned above (phishing) or in many other ways. And not even online only. Some thieves can check your trash can or steal your wallet to get your personal information that will help them to get access to your account;

Also, do not forget about keylogging. In case you are using public networks, such as public Wi-Fi or internet cafes, to get access to electronic payments systems through internet banking, please be noticed that you can become a victim of keyloggers. There are several ways to get your username and password that keyloggers use, but here are the most common:

Video cameras that filming your keyboard while you filling out your username and password to enter online banking;

Software that recording your keystrokes during the same process;

And the last most common risk is pharming, but we also should mention that this trick is more difficult for hackers than the previous. To perform pharming, hackers need to hijack the URL of your bank, so every time when you will try to get on your bank’s website, you will access the fake site that looks exactly like the original.

How Can You Avoid Such Risks Realization?

Below you will be able to find four major rules that every online banking user needs to follow to keep his or her account safe from hackers and fraudsters. These rules have been set by U.S. FDIC (Federal Deposit Insurance Corporation), but it works for every country in the world. The rules:

Confirm the legitimacy of your online bank. Secure online banking should have information about its legitimacy on its website. Moreover, on its site you should also check is it insured with a deposit insurance corporation.

Be careful with fake bank websites. Every time when you would like to use such a payment instrument as online banking, get on the site by typing its web address in the address bar of your browser or by using a bookmark. But do not use any links from emails or any other resources. Because hackers create fake websites with similar web addresses and the original interface.

Learn more information about how your online banking’s security system works. For example, any payment solutions that are available in your online banking should be secured. As well as all of your personal information should be encrypted to be secured from hackers.

Make sure that your computer, laptop, and smartphone are protected. Nowadays you can get access to electronic payments systems through your online banking from any device that has an internet connection. That is why you need to be sure that all of them have the latest security software.

As you can see, if you follow these simple rules your online banking will be safe enough for further usage. Banks’ security departments work hard to prevent any risks, but you also need to be careful.