More Secure
Before considering how secure online banking is, think about how secure your current payment methods are. If you write a check, use your credit card over the phone, carry it with you when you leave you your home, or use it at a restaurant, you have taken a financial risk much greater than online banking. With a check, the cashier, store managers, and check processing representative not only can get your name, address, phone number, and bank account number (yes, that is on your check), they can also see your drivers license number, which is, in most cases, your social security number. A credit card carries less risk but giving it over the phone to a unknown person, or to a waiter, who could easily copy down the information before returning it to you, also carries more risk then online banking. With online banking the information that is listed on you check is not available to anyone but you and your bank, and online banks use passwords, encryption, and firewall security measures to protect your account. This is more security then you have when using traditional checks or credit cards. And if you are still concerned about your money, remember the FDIC. If your money is stolen from an online bank, the FDIC insures online banks in the same way that they do traditional banks.

FDIC protects the security of your money.
"FDIC insured" is a common catch phrase used by almost all banks. Created in 1933 in order to restore public confidence in the nation's banking system, FDIC (Federal Deposit Insurance Corporation) insures a customer's money against loss, even if the bank is no longer solvent. Each depositor is insured to $100,000. So no matter what happens to your bank, your money will be insured. Most online banks are FDIC insured, and if you plan to bank online, you should only sign up with a bank that is FDIC insured. (NOTE: Credit unions are not insured by the FDIC. If you are considering a credit union, you will need to contact the National Credit Union Administration, which insures money deposited in some credit unions). Banks will have the FDIC logo on their main/home page, or on their main online banking page. If you don't find the label, you will need to call or email to find out if the bank is FDIC insured.

The security process.
Banks protect your security in three main techniques: passwords, encryption, and firewalls/server security.

Passwords and user names are an essential element of online security. Passwords ensure that only those authorized have access to an account.

Encryption insures transmission security between your computer and the bank's computer. The information you send to the bank is encrypted so that only the bank can identify what you are sending. Anyone else who is viewing your activity over the Internet would only see the equivalent of a jumble of letters and numbers. The technology used is called SSL or Secure Sockets Layer. It secures and authenticates the user through a secure browser. This provides 128 bit encryption and is widely accepted as standard for processing financial transactions.