How to Bank Safely Online - What You Can Do

How To Make Online Banking Secure

Introduction
This page is designed to offer you a list of steps you can take to help protect yourself and your money when banking online. Banks take many steps to protect the security of your account, and we outline these security measures, but this page is designed to offer you advise on protecting your own online banking security. Here we offer 18 steps you can take to help secure your online account.

Check with the FDIC
A independent way to insure the legitimacy of a bank is to check with the FDIC directly to see whether a bank is insured. To find out if a bank is FDIC insured click here and use their bank finder form. If you can't find the bank listed there, try calling the FDIC at 1-800-934-FDIC (3342). Independent confirmation is an important step, don't skip it.

Evaluate the site.
Make sure the online banking site you are considering has depth (many pages), and is well designed. Unless you know a bank is legitimate, don't accept a poorly designed site with broken images. If you are unsure as to whether a online bank is legitimate look for a different bank.

Go to the bank, don't let the bank come to you.
Don't accept unsolicited email recommendations for online banks. You should search for the bank; don't let a bank search for you. In this way you won't be the victim of a web site masquerading as a bank when they are not. In the past few years hackers have gotten email addresses of customers of some financial service companies and sent email to them inviting them to fraudulent sites in order to try to get personal information from them. PayPal experienced this problem, when con-artists sent a email asking consumer to go to the web site to review a large payment in their account. The gave the url of PayPa1.com instead of the correct url PayPal.com (They substituted a 1 for the L). Know your banks online address and go directly to it.

Be aware of foreign bank rules.
Many of our readers are outside of the United States, so you need to check with the governing body of whatever country you plan to bank in before you sign up with a online bank. If you are unsure which body this is, email or call that bank and ask who insures the accounts and who regulates the bank. For US citizens considering banking abroad, be aware that FDIC insurance will not apply to your account. If possible we recommend banking in the United States.

Don't choose an obvious password or username.
Don't use variations of any obvious people, numbers, or things related to your life. This includes names, addresses, phone numbers, social security numbers, or variations of any of these. Don't use words or phrases. Don't use the first letters of each word in common phrases. Do use a combination of random numbers and letters. Many banks will provide a random password and/or user name for you; use these. If possible change the password to one only you know, and change it online over a secure connection into the bank's official web site.

Don't write your password down, and if you do . . .
If you right down your password you make it possible for anyone who has access to your house, whether legally or not, to gain access to your account. If you do want to have it in writing, in case you forget it, write it down, and place it in your physical bank deposit box (yes, sometimes you still need a physical bank) or a safe.

Don't use the same password or user name again.
Many online stores and even some information based web sites require that you register to use their service, and that requires having a user name and password. No matter how easy it seems to have one user name and password for all your Internet accounts, don't do it. If you desire convenience, create one password and user name combination that you use for all your non-bank accounts. Create a different password for your bank. Remember, many web sites don't have the security your online bank does. Don't allow your password to inadvertently be revealed or misused. Prevention is a key element of security.

Don't save the password on your computer.
Many modern browsers allow you to save passwords on the computer's hard drive and have them come up as you type in your user name. It may be convenient, but you allow anyone with access to your computer, whether for a couple of minutes or hours, the ability to access your account. It may never happen, but don't make it easy for your account to be accessed.

Log-off your account and close your browser when done.
Many banks will automatically log you out of your account if you don't use it for a set amount of time, usually five or ten minutes. This step is to make sure only you use your account. If you happen to step away, your account will not be open for hours to anyone who could come along. Even if your bank offers this service you should log-off of your account immediately when you are done using it. Additionally, if others people use the computer, you should shut down your entire browser to insure that previously viewed pages will not be accessible.

Use anti-virus software.
This software helps protect against a virus that can manipulate your computer to learn information about you, or to gain control over your computer remotely (i.e. from another location).

Use a modern browser.
By using a current browser, such as Microsoft Internet Explorer or Netscape Navigator/Communicator, you insure that the best encryption technology is at work when you transmit information to your bank and vice versa.

Download upgrades and patches for your browser.
Because the most recent version of a browser is being used, security problems may exist in the software. While these problems are almost never exploited, it is important to download any patches or new versions to insure you have the most secure browser. NOTE: Only download from the software companies web site or a large established download site like Cnet's download.com. Go to the web site yourself. Don't respond to unsolicited email trying to tell you were to go.

If you see a security problem, report it.
If you notice that some part of the online banking system that you use is vulnerable, or the software is allowing access to information it shouldn't, report it to your bank immediately. Banks have the highest level of security, but mistakes can still exist. Customer reporting of the problem can insure that a remedy is achieved before a error turns into a problem. Additionally, if your bank is sending sensitive information via email to you, ask them not to do so, and have them either post it in a secure portion of your account or provide it over the phone.

Ask your bank about security.
Banks understand your concern, and a good bank should be willing to provide any information you need. Your contacting the bank, shows them that customers care about security. If you have a question, ask.

Don't use your account on a unknown computer.
Unless you are sure a computer is secure, be wary of using a unknown computer. Computers can record pages viewed and keystrokes entered among other possible security violations. Granted, this will not be your experience on most computers, but be careful.

Don't use your computer at work.
Even if it's on you lunch hour and on you own time, employers can monitor computer usage and even typing (although most don't). While your company might not care how much money is in your accounts, those who are paid to monitor Internet and email use will also have access to this information. You can use your computer at work, just be aware of the risks.

Shred or securely store your paper bank statements.
One of the advantages of online banking is that your records are stored securely online. However, if your banks sends you monthly statements about your account or another account you have with them, be aware that these statements can include log-in information as well as account numbers that can be used to access your account. Your should shred these documents when you are done with them or store them in a secure place.

Understand security and online banking.
You have taken a good first step by reviewing the information on this site and this list of security measures that you can take, but make sure you continue to be aware of the security measures your bank employs.