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Dave Miller – Tech Enthusiast & Security Expert – February 5th, 2022
Financial companies must guarantee that their clients can access their accounts with the most outstanding reasonable security level, but How Secure is Online Banking Today? Every economy relies heavily on financial institutions, and for banking and non-banking, financial institutions get governed by a central government entity. However, according to a report by the Central Vigilance Commission, the banking industry accounts for almost 40% of all frauds.
There has been a shift in how banks guard against theft now that they have a digital interface. So, today I’ll talk about whether the traditional bank is still the most excellent place to keep your money or not.
The banking industry has got transformed by digital (online) banking, which allows for faster and more comfortable transactions. However, many of us continue to assume that digital banking is dangerous and often question, how secure is online banking today?
Processes that used to take hours, such as applying for a loan, creating a bank account, or participating in financial markets, are now done in minutes. According to a study, financial services organizations get believed to be 300 times more vulnerable to cyber-attacks than any other industry.
As a result, banks have begun to reconsider their strategy to remain relevant to current consumers by implementing additional security measures.
Fact: Consumers now prefer Internet online banking to traditional branch banking, according to the World Retail Banking Report.
Although, Traditional banks remain vital to clients because of their human service, what are some significant areas in digital banking where customers are concerned?
According to a study from Singapore’s Nanyang Technological University, poor security may damage people’s trust in digital banking. It leads us to conclude that banks must provide robust security to keep their customers pleased and loyal. On top of that, Identity theft is, without a doubt, the most concerning.
According to the Consumer Sentinel Network, in 2019, 3.2 million consumer fraud and identity theft complaints were filed. As online retail becomes increasingly important to customers with each passing day, people with stolen credit card information may purchase things much more simply via the Internet than they could in a store. In addition, there might be some additional problems with online banking
You can’t stroll into a branch and chat with a manager about an issue with your online bank account. What you gain in terms of speed and convenience from online banking, you lose face-to-face contacts. However, some online banks place a premium on excellent customer service, so you may pick and choose who you deal with. Online banks can go offline, and no website is flawless. When an online bank goes down, most issues get swiftly resolved.
Online banks must protect your financial information as a top priority. To keep your personal and financial data safe, they employ a combination of cutting-edge technology and industry best practices. So, in most circumstances, you don’t have to be concerned because all of your online transactions and information exchanges are safe and secure.
As many users are aware, the login credentials you must enter to access your bank are the first degree of security; nevertheless, there are a few below reasons why internet banking is safer than you would think and will answer your query about how secure is online banking today
128-bit Secure Socket Layer encryption is the most advanced type of encryption that banks use. When you log in, fill out an application, register for services, and so on, SSL encryption establishes a secure connection with your browser. Then, utilizing modern digital technology, all of your transactions occur in a very safe and encrypted channel, encrypting your data as you transfer it over the Internet not to get decoded if it gets intercepted. The information is encrypted in such a manner that only you and your bank can decipher and read it as it travels across the Internet.
As a result, it prevents fraudsters, internet thieves, and ransomware criminals from accessing your data. In most current browsers, a URL that starts with “https” indicates that it has an SSL certificate, and you can check the certificate details by clicking on the padlock icon in the address bar.
Client authentication is the initial stage in safeguarding customer accounts ensuring that customers access their accounts, not fraudsters with stolen identities. To prove your identity as a legal purchaser and match the available data, banks use device authentication and PIN verification.
Note: Passwords are the most frequent authentication technique used by financial services, according to a PYMNTS survey.
In addition, several banks offer fingerprint authentication built into their mobile banking apps. Eyeprint verification, as well as facial and voice recognition, are examples of biometric security techniques. These verification techniques are simple to use and complex for crooks to duplicate.
On top of that, banks employ a two-step factor authentication system, a more secure method of gaining access to and using Internet Banking. It might be something the user is aware of, something they possess, or something they are.
Any two-factor authentication system works by requiring the user to produce one form or factor of identity before prompting them to provide the second. Most well-established banks employ two-factor authentication without making it too difficult for their clients, so there’s no reason for others to forego security.
Online banking is a sensitive topic since it can significantly harm depending on the attackers’ goals. Even though large amounts of malware exist today, banks have the tools and technology in place to limit risk. These tools aid in the detection and prevention of viruses and harmful malware. In addition, intrusion detection systems, firewalls, intrusion prevention systems, and anti-malware systems are all used by banks. In addition,
Apart from the security layer described above, these are the general rules that all banks adhere to. On the other hand, some banks are going above and above in security features
The Virtual Keyboard got designed to keep your password safe from dangerous software. Any keylogger software will not access your credentials if you use a virtual keyboard to input your password. Because the exact key pressing causes a voltage and current to change, hackers can use this information to guess the user’s password. Therefore to answer your question again regarding how secure is online banking today? Banks provide users with this virtual keyboard, an online tool to input passwords using a mouse.
Bonus info: If a user’s accessing a web page of online banking is left unattended for an extended period, the bank will automatically log them out.
Cookies are signals sent by a Web server to your browser to identify users and, in some cases, to preserve login information. Banks often use these cookies for security reasons.
Banks can detect or authenticate your computer when you log in to your account again by installing a cookie on your computer after your initial login. The message is sent back to the server each time you complete a transaction or visit a new page on our secure server to authenticate the request. If the banking server notices that you are logging into your account from many devices, it will encourage you to submit extra information to access your services online.
On credit, debit, or Digital Banking transactions, some banks enable consumers to establish an upper limit on a transaction or a daily limit. If the bank thinks that your debit card is being used illegally, in this case, your account and transactions may get blocked without notice. It lowers the risk of a data breach. It’s a simple process; you might call a bank agent if you initiate the transaction.
Many banking applications and websites will allow you to deactivate and reactivate your credit or debit card. As a result, you’ll have a ready-to-use choice if you fear you’ve been hacked or misplaced your card.
The Federal Deposit Insurance Corporation insures most bank deposits dollar for dollar. This insurance protects your money as well as any particular interest. Even if hackers can take money from your account in the worst-case situation, you will most likely be protected since the bank would repay your account based on their terms and conditions. Banks get required by federal law to refund stolen cash if they get notified within 60 days. Also, Since the Federal Deposit Insurance Corporation got founded in 1933, no depositor has ever lost a dime of their protected money.
Your homes or renters insurance may not cover the entire amount if you store cash in your house or automobile owing to probable losses. Furthermore, a bank’s security safeguards and systems are likely far superior to anything you might imitate at home.
The most crucial factor to consider when choosing a bank is meeting your specific demands while also giving a positive experience in terms of services and assistance. Here are a few crucial pointers to think about
Generally, consumers prefer to stay with their banks for a long time, so thoroughly assessing your alternatives before committing to a relationship with a particular bank is recommended. Many central online banks follow these factors, so make a list, score different banks and credit unions against these criteria, and see which one wins your expectations.
Using the Internet to access your bank account usually is safe. As long as you submit the correct information and follow a few simple principles, you should be OK.
When banking online, you may protect yourself by adopting a few extra precautions beyond those taken by the bank.
Instead of wondering only how secure is online banking today, you can play your part as well by following the above simple tips.
Banks invest a significant amount of money in their digital infrastructure to ensure the highest level of security. One of the dangers of internet banking is the possibility of your account getting hacked.
Although your bank gets obligated by law to reimburse unauthorized transactions and recover your account in some situations, you should always take precautions on your own by implementing additional security measures. Consider institutions that provide a variety of security features that may be deemed safe and secure for online banking when used in conjunction with your security procedures.
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Dave Miller is an IT Consultant for Online Cloud Security and has over 7 years of experience in the Information Technology space. He also specializes in repairing laptops & computers. In his spare time, he loves to talk about new technologies and hosts monthly IT and Cyber Security meetings in the Houston area.
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Online Cloud Security is here to recommend you the most secure devices, from laptops to smartphones, we only want to provide you with products that we have tested and used ourselves for online security. Every product that we recommend is heavily inspected and tested for security against hackers, viruses, malware, and any other intruders that may want to steal your information.
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