Five ways to improve your online banking security
Online banking 鈥� by computer or by phone 鈥� is now as common a way to access your accounts as stopping at an ATM, with making it a habit, according to the Federal Reserve.
But you know who else loves online banking? Hackers. After all, it鈥檚 easier to do what they do from far away than to take someone鈥檚 money while standing in line at the teller window.
Banks and credit unions are beefing up their security systems to fight cybercrime: More than 70% of bank technology executives say they鈥檝e in this area, according to an American Banker survey. But consumers also have a role to play.
Here are five steps to take to protect your accounts so you can bank securely online.
1. Ask for two-factor authentication
When you log in to a website, you prove who you are by entering a username and a password. That鈥檚 one factor. With two-factor authentication, you鈥檙e asked to enter another piece of identification, such as a temporary code. The bank would email or text you the code at the time you try to log on, so it鈥檚 unlikely someone else could receive it beforehand.
鈥淭wo-factor authentication simply requires two forms of verification before a user can log in, and consumers should ask their financial institution if they offer it,鈥� says Matt Cosgriff, a certified financial planner in Minneapolis, Minnesota.
2. Skip public Wi-Fi
You can鈥檛 really tell who can see your data if it鈥檚 being sent over public Wi-Fi, the kind offered at places like coffee shops and hotel lobbies. Basic Web surfing on these public networks may be OK, but it鈥檚 best to do your online banking from the security of a private home network, says Doug Johnson, senior vice president for payments and cybersecurity policy at the American Bankers Association.
If you travel often and need to use , consider choosing your mobile provider鈥檚 data plan for online access. If you have to use public Wi-Fi, another option is to set up a virtual private network, or VPN, to send and receive encrypted data online. You can do this for a few dollars a month.
When you鈥檙e on your bank鈥檚 website, verify that the page is secure before you submit any personal information. Check your browser鈥檚 address bar to make sure it starts with 鈥渉ttps鈥� instead of 鈥渉ttp.鈥� 鈥淭hat lets know you have a secure connection,鈥� Johnson says.
3. Set up reminders to change your password
When you and sign up for online banking, you鈥檙e probably asked to create a strong password. That鈥檚 good advice. In addition, it鈥檚 a good idea to set up reminders on your task list or calendar to change to another strong password every few months so that it doesn鈥檛 become stale and guessable.
Along these lines, avoid having the same password for all your online accounts. You may not care if someone hacked into that social media account you no longer use, but what if that person could then use it to get into your checking and savings accounts? Keep your passwords distinct and varied.
4. Be wary of 鈥榦fficial-looking鈥� notices
Some scammers send emails that claim to be from a bank, asking you to click on a link to settle some issue with your account. These emails might have the right logos and language, but Johnson says it could be a effort to get you to give up your username, password, Social Security number or other sensitive data. 鈥淧hishing attempts are becoming increasingly sophisticated,鈥� he says.
If you receive an email that is even a little suspicious, don鈥檛 click any links in the message. Remember that you can always sign in to your account by opening a new web browser session and typing in your bank鈥檚 web address. You could also call your bank at a number you trust.
5. Ask your bank how it鈥檚 keeping your records secure
Take a look at your bank鈥檚 website, or contact customer service, to learn about any encryption technology it uses, whether it monitors accounts for fraudulent activity and if it limits your liability for unauthorized transactions. 鈥淔ind out what your bank鈥檚 doing to protect you,鈥� Cosgriff says. If you鈥檙e not satisfied with the answer, consider switching to a bank where you will be.
Online banking is convenient, but you want your financial information to stay secure. Taking steps to protect your accounts is a vital part of managing your personal finances.
Margarette Burnette is a staff writer at NerdWallet, a personal finance website. Email: mburnette@nerdwallet.com. Twitter: . This article first appeared at .
