Online banking is a way to access your bank information without having to go to the bank. It’s fast, easy, and convenient. But is it secure? You enjoy using its services but you’re probably not aware of the steps they take to ensure that your account is protected.
This article can help you understand how online banking security works. We will talk about what these financial institutions.
1. Multi-Factor Authentication
When it comes to online banking, a user ID and password is often not enough. In fact, it’s the easiest way for an account to get hacked. Hackers only need to get a hold of your credentials via malware or phishing and they can already go into your account. If your bank only has this as their mode of verification, consider switching to a different one.
A bank with more sophisticated cybersecurity will have multi-factor authentication. Aside from your user ID and pin, you will be asked to answer security questions that only you should know such as the date of when you opened your account, and other personal questions like your pet’s name, a sibling’s middle name.
To make the account more secure, you are required to review these security questions every now and then. If it’s not as strong anymore, you may be asked to change your security questions.
2. Strong Password Requirements
You’ve probably come across this. When you sign up for any website, you are required to meet certain password requirements such as that it should have at least one number, one uppercase letter, one special character, and at least 12 characters.
A way that banks make online transactions for customers more secure is by requiring stronger passwords. Some will even go as far as requiring that you use a combination of letters that cannot be found in the dictionary. It’s a way to make your credentials stronger and less vulnerable to hacking.
3. Transaction Notifications
As a way to enhance security, banks are now sending email notifications for every transaction that you make whether it’s done by person or online. For example, if you initiate a withdrawal, you automatically get an email or text from your bank notifying you that a withdrawal has been made for a certain amount. This keeps you to be aware of your account’s transactions and prevents fraudulent transactions from happening.
If it isn’t yours, banks encourage you to call right away. The quicker you can report the fraudulent transaction, the better chances you have of getting your money back and you’re not liable for the loss.
4. Locking Accounts
Less sophisticated hackers will use several attempts to get into your account. To safeguard it, criminals, banks will automatically lock your account after multiple log-in attempts. This is because people who own their accounts don’t have to guess their passwords. They just know it by memory or they use a password saving tool like LastPass.
After three failed attempts, your account will get locked and you will receive notification that someone else is trying to log in to your bank account.
5. Identification Using Biometrics
Biometrics used as identification is already being employed in our most ubiquitous technology, the smartphone. Banks are catching up too using biometrics to verify a person’s identity via their unique human features like their thumbprint. It’s easy to implement, convenient to use for customers and provides a stronger barrier against hackers. While other financial institutions are already using more advanced technology like blockchain, most regular banks can enjoy better security by starting with biometrics.
6. Automatic Log Out
A way to make sure no one else is looking at your online accounts is by automatic logout. This is when banks automatically log you out of your account after a certain period of inactivity.
What are your thoughts about these cybersecurity measures? Share your thoughts in the comments below.