Are Online Banks Safe? 6 Security Tips for Banking Online

While some people worry about security with online banks, online banking may be the safest way to manage your money. When you choose a reputable bank and follow cybersecurity best practices, you can safely log in, transfer funds, pay bills and much more, all from your home computer or mobile device. Here's a closer look at what you can do to keep your online banking accounts safe.

1. Choose a Reputable Bank

The first step in using online banking safely is to choose a reputable bank. Reputable banks typically employ teams of digital security specialists to ensure your online banking experience is private and secure. Also, make sure your bank is an FDIC member, which offers insurance for your deposited balance up to agency limits.

Banks use many tools to keep your online activity safe. That includes using secure socket language (SSL), signified by a website address starting with “https." SSL encrypts internet traffic between the bank's systems and your device, making it harder for hackers to intercept and decipher your information.

Reputable banks follow strict practices to keep their networks safe from cybercriminals, and they work hard to keep your personal information and finances safe using a wide range of tactics. Bank security teams limit access to sensitive systems, regularly test for vulnerabilities, monitor for fraud and prioritize robust data encryption.

2. Use Two-Factor Authentication

Two-factor authentication, or multifactor authentication (MFA), adds a second step to your online banking login. Two-factor authentication typically requires entering a code sent to your phone or email, or from a secure authentication app.

While it may seem like a hassle to go through extra steps to log in, two-factor authentication provides essential protection for your online accounts. Even if a cybercriminal were to get ahold of your username and password, they couldn't log in without access to the multifactor code. Placing a second barrier around your account can play a critical role in keeping your money safe.

3. Create Strong Passwords

Using simple passwords that are easy to remember is tempting but should be avoided. It's best to use strong, complex passwords and choose a unique password for every website and app. If you use the same password on multiple accounts and one is breached, bad actors can gain access to everything they need to log in (unless you're using two-factor authentication).

The best passwords are either random passwords or unique passphrases. A password manager like Bitwarden or Proton Pass makes it easy to generate secure passwords and store them for easy use. With a password manager, you only have to remember one password—the password manager software keeps track of the rest.

4. Monitor Your Accounts Regularly

Even with secure passwords, multifactor authentication and the efforts of your bank to keep your data safe, it's still possible for fraud to slip through. That's why checking your accounts regularly is crucial to look for unauthorized transactions.

You can review recent transactions 24/7 with online and mobile banking. With third-party personal finance apps, you can connect your financial accounts and review all your accounts in one place.

With major credit cards in the United States, you have $0 fraud liability for unauthorized charges. If you spot a charge you don't recognize, you can call the issuer and they will wipe the transaction from your statement and issue you a new card number. For bank accounts, your bank likely offers fraud protection as well. However, limits may apply, so it's a good idea to monitor your accounts regularly and notify your bank immediately if you find unauthorized transactions.

5. Only Use Secure Internet Connections

Hotels, coffee shops, restaurants and airports often offer free wireless internet to customers, but that doesn't make it safe. While free Wi-Fi can help you save mobile data and get your laptop online, those connections shouldn't be blindly trusted for online banking.

If you need to log into a financial account while traveling or using public internet, using a virtual private network (VPN) to encrypt your internet traffic is wise. A VPN encrypts traffic between your device and a secure server, so snoopers on the same network can't intercept your traffic.

The best place to handle online banking tasks is on your home internet or cell phone without Wi-Fi.

6. Learn To Identify Phishing Scams

Phishing is a term for sending deceptive emails to trick people into clicking a malicious link or entering their login or personal information into a fake website. Knowing how to spot phishing emails and scams can help you avoid becoming a victim.

Common red flags of a phishing scam include:

• • A suspicious sender email address. Emails from your bank will always come from an address on your bank's website. Your bank won't send you an email from an address at Yahoo, Gmail or a misspelled email domain.
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• • Poor spelling and grammar. Banks send emails with perfect spelling and grammar. If you notice typos, poor formatting or incorrect grammar, it's a red flag that the email may be a phishing attempt.
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• • Links that don't match. If you put your mouse cursor over a link in an email, your computer should show you the full link address before you click. If a link doesn't go to an address on your bank's official website, it's probably malicious. Some scammers create fake websites that include a bank's name to trick unsuspecting victims into entering their information.
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• • Urgent language. Banks rarely need you to do something urgently. If they do, they will contact you from an expected secure channel, such as your bank's mobile app or secure messaging system. If you read an email pressuring you to act quickly, take a moment to assess if it's legitimate. When in doubt, call a public phone number for your bank and ask about it before clicking or entering information.
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• • Unexpected attachments. If you get a message with an attachment you're not expecting, it could be a virus or malware. Never download unrecognized attachments, particularly from an unrecognized email address.

Staying Safe With Online Banking Is a Team Effort

For digital security, you and your bank are partners working together to keep your finances and information safe. If you don't follow these best practices, you could find yourself on the wrong side of a security incident. But by following these tips and using common sense online, you should be able to keep the bad guys at bay.

Synchrony Bank works hard to keep your accounts and data safe. Download the Synchrony Bank mobile app today to get instant access to your bank accounts at home or on the go.

 

Eric Rosenberg is a financial writer, speaker and consultant based in Ventura, California. He is an expert in banking, credit cards, investing, cryptocurrency, insurance, real estate, business finance and financial fraud and security. His work has appeared in many online publications, including Time, USA Today, Forbes, Business Insider, NerdWallet, Investopedia and U.S. News & World Report. Connect with him and learn more at EricRosenberg.com.

 

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