However, a simple mistake in online banking can result in huge costs.
About $15 billion was stolen from consumers last year due to counterfeit card fraud. New chip technologies were now discovered to prevent such crime, but you too can also do something to avoid these misfortunes.
I have listed 10 common mistakes we tend to make when using online banking. With this list, you would know how to prevent bigger losses.
1. Overlooking your accounts
It is important to monitor the activity in all your bank accounts. So, you can easily spot fraudulent transactions and stop cybercriminals from creating bigger damage on your account.Please contact your bank or credit union immediately if you happen to see an item that you did not make. They can investigate and fix things for you.
2. Having a single password
Your online accounts may get hacked if hackers are able to get the passwords of customers of big establishments. They may use bots to log in to bank accounts. If your username and password are the same to all of your bank accounts, then all can be compromised.To resolve this, have a unique username and password for your online banking account. Make sure this is different from your email or social media accounts logins.
You must also regularly change your banking password. Keep the security high using a combination of lower and uppercase letters as well as symbols and numbers.
3. Being negligent of your phone
We used to only call and text messages from our phones. But now, aside from basic communication, we use it to watch videos, play games, surf the Internet, and even banking. Thus, we should take utmost care of all of our devices, including our mobiles.4. Ignoring security features
If your account, which has no email and text alerts, was hacked, he or she can linger for 75% longer. This is because it will take you a long time to know your account was compromised. Thus, you will incur greater losses.However, most of these services are free and won’t spam your inbox. Aside from security updates, some financial institutions even update their customers when their balances are below a certain amount. You can avoid fees and save your hard-earned money..
5. Thinking that online banking is not secured
Some people are afraid of online banking because they think it has weak security features. On the contrary, banks and credit unions spend millions of dollars yearly to strengthen their online security and firewalls.For example, Chase bank has a unique routing number, which makes it easier to track checks and somehow prevent fraud. Meanwhile, it invests in the most advanced technologies to ensure the online banking clients’ information is well protected.
6. Banking online in public places.
Connecting to public WiFi makes you an easy target for hackers. When you log in to your online banking, you are posing higher risks to yourself. This is because public WiFi has a lower level of security compared when you use your own router.7. Accessing phishing websites
We must use only the official mobile banking apps, which are generally safer than using a web browser. You may go to your bank’s website, then click the download link for the app. You may also download the app from AppStore or Google Play stores.If your bank doesn’t have an app and you need to transact on the go, visit only a website that starts with https://. This means the site has higher security measures to avoid accessing a phishing website.
Phishing websites look like real websites, but their goal is to get your login information and access your account. Millions are already stolen from customers who mistakenly access a phishing website and we don’t want that to happen.
8. Not logging out properly.
Although most online banking will automatically log you out after being inactive for a few minutes, you must log out properly. Otherwise, you are giving hackers a few minutes window to gain access to your account.If you are using a public computer, other users can easily access your online bank account. You can lose as much as every penny in your bank if this happens. So, always log out of your online banking account after use to avoid it from being compromised.
9. Not enrolling to online banking because you’re old
While the younger ones depend too much on the Internet, most elderly are technophobic, particularly with money matters. This does not mean that the old should not go digital as well.Study says that people aged 38 to 53 are most likely to have or had an online savings or investment account. However, it is worth to have an online savings account regardless of age.
Even banks are promoting their online banking program to provide clients with greater access to their accounts. In fact, this could help their clients to manage their finances and keep a good credit score.
10 Being skeptical
It is natural to behave second thoughts about opening a new online savings account. It doubly harder if the bank is just starting out or unknown banks.This is understandable, particularly if the bank is unknown or just starting out. So, you must do careful research, then weigh in which one has the most perks.
Usually, traditional banks/financial institutions launch the digital bank, which is actually an extension of these traditional institutions that have been around for decades. However, as long as your deposits are insured by the FDIC or the Credit Union Share Insurance, you should be cleared. In the event that a bank closes, you’ll be able to get most (if not all) of your money back.
Be aware!
While online banking has perks and drawbacks, with a little caution, you can also gain confidence in it. No one will get caught offguard if people take precautionary measures to secure their accounts.
We hope you keep yourselves and your properties safe and secured at all time. Kindly leave a comment below if you have questions and inquiries.
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