Banking Security 101: Tips for Safe Online Banking Practices

Table of Contents

1. The Basics of Secure Online Banking
2. Choose Your Login Credentials Carefully
3. Stay Safe with a Secure Connection
4. Keep Your Credit Protected
5. Regularly Review Your Bank Statements

Online banking and using mobile apps for money management are parts of our daily lives. While these technologies make banking easier, they also bring new security risks. That’s why it's important to use strong security measures to ensure safe online banking.

To help you stay safe and protect your finances, we'll be sharing what you need to know about keeping your online bank accounts secure and out of the wrong hands. By taking the following actions, you can rest assured you're taking all the necessary precautions to safeguard your information.

The Basics of Secure Online Banking

There are a lot of factors to consider when it comes to safe online banking. To make sure your data is secure, you'll need to consider everything from the device you're using to how you log in to the network you're connected to. It's important to stay vigilant and be mindful of your approach to banking online because it ultimately affects the safety of your money.

Recognize and Avoid Phishing Scams

One of the biggest threats to your online safety is phishing. Phishing scams are a typical 

method cybercriminals use to get your login details. They disguise themselves as real institutions, like banks or credit card companies. Then, they send out fake emails or text messages to trick you into giving them your private information. Fortunately, you can often keep yourself safe by watching for some common warning signs.

Identifying Common Signs of Phishing

To make sure you're following safe online banking practices, here's what you should watch out for:

It's important that you never click on a link that comes from a number or address you don't recognize. Scammers might even send you to a fake website that mimics your financial institution. If you think it is a phishing attempt, delete the suspicious email or SMS immediately.

Choose Your Login Credentials Carefully

It might seem like a small detail, but your login details are very important for safe online banking. You should think of them as guards for your financial security. Here's how you can manage your login credentials wisely for added online banking security. 

Best Practices for a Strong Password

When you're creating a password, avoid frequently used passwords or information that is easy to guess. Instead, choose something special and memorable just for you.

Here are some tips for making strong online banking passwords:

• Mix Different Types of Characters: Use upper and lowercase letters, numbers, and special symbols (!@#$%^&*) to make your password more complex.
• Make It Long: Aim for a password that has at least 12 characters. Longer passwords are much harder to break.
• Don't Use the Same Password Twice: Do not use the same password for different accounts, especially for your online banking and other important accounts.

Luckily, many platforms today will require you to create a "strong" password before moving forward with your account.

Using a Password Manager

Given the many online accounts we have, it can be hard to remember different complex passwords. This is where a password manager comes in handy. Think of a password manager like a digital keychain. It keeps all your passwords and account information in one easy and secure spot.

You only need to remember one main password to access your vault. This means you don’t have to remember many different logins. You can find many password managers on the iPhone App Store or Google Play.

The Risks of Saving Passwords in a Browser

Many browsers allow you to save your passwords. However, this can be risky, especially for important accounts like online banking. If your device is compromised or infected with malware, your saved passwords may be at risk. Hackers can steal and take advantage of weak security in browsers to access your passwords, allowing them to enter your sensitive accounts. For truly safe online banking, you should never save your passwords to your browser.

Using Multi-Factor Authentication System

Multi-factor authentication is like having two locks on your door for safety. If someone gets through the first lock, your password, they still face a second lock. This makes it much easier to ensure you're practicing safe online banking.

When you log in to your online banking account, you first enter your password. Then, a unique code is sent to your phone for verification. This process ensures that even if someone guesses your password, they still need physical access to your mobile device to gain access.

Stay Safe with a Secure Connection

When you're managing your money, it's critical to have a secure internet connection for safe online banking. Not all networks and payment methods are secure, which can put your data at risk of being stolen.

The Dangers of Using Public Wi-Fi for Banking

It might seem harmless, but there are risks to using public Wi-Fi. For example, if you're sitting on your laptop at a coffee shop, hackers can easily see your data on these unsecured networks. Your data is exposed and vulnerable. Hackers even create fake Wi-Fi hotspots with names that sound real. If you connect to these fake networks, they can easily get into your device and access your data.

The Safest Way to Complete Transactions

If you need to complete a transaction in public, the best way to do so is with a personal Wi-Fi hotspot or VPN to protect your information. It's also important to note that credit cards are safer for making online purchases. Credit cards help protect you from fake charges. If someone gets your card info, it won’t hurt your bank account directly. If they were to gain access to your checking account, for example, it would be much riskier.

Mobile payment services are becoming more popular, and that’s for a good reason. These services act like a bridge between your bank account or credit card and the store. They swap your actual credit card details with a special code, allowing for safe online banking.

Keep Your Credit Protected

You should protect your credit score the way you protect your wallet. Your credit score is a large part of your financial well-being and will determine a lot of the decisions you can make for your future. That's why keeping it safe should be a top priority.

Understanding Card Controls

Many banks and card issuers now have helpful card controls. You typically can find this security feature in your online banking platform or mobile app. They let you set limits and rules for how you use your credit card, adding more security.

With card controls, you can instantly "lock" your card if it's missing or stolen. This security measure stops any new transactions from happening. When you find your card, you can easily “unlock” it through the app. Then, you're ready to use it again.

How to Freeze Your Credit

In some cases, you might want to freeze your credit. Freezing your credit puts a lock on your credit report, meaning new lenders can't see it. This can help keep your finances safe if you think there might be fraud or someone is accessing your personal information. To start a free credit freeze, visit the credit bureaus: Equifax, Experian, and TransUnion.

A credit freeze is a strong way to protect your money. However, it will stop you from opening new credit accounts while active. If you want to get a loan or a credit card, you will have to "unfreeze" your credit, which may take a few days.

Regularly Review Your Bank Statements

Monitoring your accounts can help you avoid big problems later. Checking your bank and credit card statements should be a regular part of your finances. Try to review your financial information at least once a month and go through each transaction carefully.

Set Up Alerts for Unusual Activity

Setting up alerts for unusual activity on your accounts is highly recommended for safe online banking. Real-time alerts allow you to respond immediately. If you see a strange transaction on your credit card, you can take action at that moment.

You can often customize alerts to include what you want to see and how you want to receive these notifications. For example, you can set up email or text alerts for large purchases, international transactions, or logins from new devices.

With this information at your disposal, you can contact your financial institution right away and report any suspicious activity to their customer service department. It’s also wise to change your online banking passwords and PINs just to be safe.

Enjoy Safe Digital Banking with Addition Financial

At Addition Financial, we care about keeping your online banking safe and secure. That's why we're dedicated to keeping you informed with online banking safety tips.

We also offer a safe online banking experience with our new Digital Banking experience, which you can access on all of your devices. Our mobile banking app can be found on the App Store and Google play, with security features like multi-factor authentication and convenient card controls.