Guide to Online Banking Security

Online banking offers the convenience of managing finances anytime, anywhere — from checking balances to making payments. This ease of access has made online banking a popular tool for many, but it comes with risks concerning the security of your banking data, such as phishing, malware and unauthorized access.

Banks implement advanced security features like encryption, two-factor authentication and fraud monitoring to protect customer information, but relying solely on these measures may not be enough. You can also take proactive steps to enhance your security and ensure your financial data remains protected while banking online.

Protecting your financial data while banking online requires a combination of using your bank's built-in security features and implementing your own protective measures. Here are preventive measures to avoid bank fraud, reduce the risk of unauthorized access and ensure your online banking experience remains safe and secure.

Your password is the first defense against unauthorized access to your account. A strong, unique password can significantly reduce the risk of being hacked. A password manager, such as 1Password or Keeper, can help you generate complex passwords and securely store them. Regularly update your passwords every three months and avoid reusing them across multiple accounts.

You can follow these tips to create strong and secure passwords:

MFA, or two-factor authentication (2FA), is a security measure that requires you to verify your identity using two or more methods before accessing your account. Although a password is something you know, MFA adds an extra step by requiring something you have on your person. For example, after entering your password, you might be asked to enter a code sent to your mobile device or use biometric verification like a fingerprint.

The purpose of MFA is to provide an additional layer of security. Even if someone obtains your password, they would still need the second factor — such as your phone or fingerprint — to gain access, making it much more difficult for unauthorized users to breach your account. Here's how you can enable MFA:

Banking alerts are notifications your bank sends to inform you of specific activities on your account. Banking alerts can be delivered through email, text or push notifications. These alerts can help you monitor account activity in real time, providing immediate updates when specific actions such as transactions, account setting changes or low balances occur. When choosing a bank, consider their alert options, as most banks provide various customizable alerts based on your preferences.

To set up banking alerts, log into your bank's online platform or mobile app and navigate to the alert settings. Recommended alerts include notifications for large transactions, failed login attempts or changes to personal information. If you receive an alert about a transaction you don't recognize or a change to your account settings you didn't make, take immediate action:

Public Wi-Fi networks — such as those in cafes, airports or hotels — are often less secure than private home networks. Anyone can easily access these public networks, including cybercriminals who may use them to intercept your data. When you use public Wi-Fi for online banking, you risk exposing sensitive information — such as your login credentials and financial details — to potential hackers.

A secure, private Wi-Fi connection at home is ideal for online banking because it's typically protected by stronger encryption and security measures less vulnerable to outside threats. If you need to access your bank account while away from home, there are steps you can take to minimize risk:

Cybercriminals are constantly developing new types of malicious software designed to commit identity theft or gain unauthorized access to your accounts. Antivirus software can protect your devices from malware, viruses and other online threats that can compromise your banking information. Here's how to safeguard your devices with antivirus software:

Phishing scams are deceptive attempts by cybercriminals to trick you into revealing personal information, such as your banking details, passwords or credit card numbers. These scams often appear in different forms, including fraudulent emails, text messages or phone calls that seem to come from legitimate sources, like your bank or a trusted organization. The goal is to lure you into providing sensitive information or clicking on malicious links that can install harmful software on your device.

For example, you might receive an email that looks like it's from your bank, asking you to "verify" your account information by clicking a link. The link could take you to a fake website that looks identical to your bank's site, where you are prompted to enter your login credentials. Once entered, the scammers capture your information.

Phishing attacks can be sophisticated and difficult to spot. However, understanding how they work and taking the following precautions can help protect your personal information:

After completing your online banking tasks, log out using the designated button. This action ensures that your session is fully closed. Simply closing the browser window or app may not terminate your session, which could allow someone else to access your account if they open the browser or app again. Regularly clear your browser's cache and cookies, especially if using a shared or public device. This helps remove any stored information that somebody could use to access your account.

Software updates often include patches for newly discovered security flaws and enhancements that improve your device's overall security. Failing to update your operating system, apps or security software can expose your device to potential threats. You can set your operating system, apps and security software to update automatically. This ensures you receive the latest security patches and features as soon as they're available without remembering to update manually. Even with automatic updates enabled, it's a good idea to periodically check for and install any available updates on all your devices, including smartphones, tablets and computers.

When accessing your bank account in public places, be aware of those around you who might be trying to observe your activities. Public spaces can expose your sensitive information to prying eyes, making it easier for someone to steal your data. Taking simple precautions can help protect your information from being compromised:

Below are answers to some common questions that can guide you in ensuring your online banking experience remains secure.

For more information on online banking safety and protecting your financial information, consider exploring the following trusted resources:

• Better Business Bureau (BBB) Scam Tracker: A tool that allows consumers to report and track scams in their area, helping to raise awareness and prevent others from falling victim to fraud.
• Consumer Financial Protection Bureau (CFPB): Offers tools and resources to help consumers manage their finances, avoid fraud and make informed decisions about financial products and services.
• Federal Trade Commission (FTC): Provides a wide range of resources on consumer protection, including advice on avoiding scams, protecting personal information and understanding your rights.
• Federal Deposit Insurance Corporation (FDIC): Offers educational materials on financial literacy, consumer protection and the importance of cybersecurity in safeguarding personal and financial information.
• Identity Theft Resource Center (ITRC): Provides comprehensive resources for protecting against identity theft, including prevention tips, recovery assistance and educational materials on safeguarding personal information.
• National Cyber Security Alliance (NCSA): Focuses on promoting cybersecurity awareness and education, offering resources for individuals and businesses to protect themselves online.