As soon as coronavirus struck the world, online banking increased tremendously. Now, in the aftermath, many users are wondering if these online banks are actually safe. Let’s take a look!
Online Banking Vs. Offline Institutions
In the wake of the pandemic, many are wondering what the differences are between online and offline banking. However, believe it or not, online-only institutions almost always use the exact same methods as their brick-and-mortar partners. But it can seem very stressful to newcomers, as there’s not a physical branch to head to with problems.
As such, customer service is truly what separates one internet bank from another. Before choosing an online-only bank, make sure you do research and read reviews. Since these are your finances, you want to ensure that all problems are fixed promptly and accurately.
Security Features To Look Out For
Of course, in the era of cybercrimes, one might wonder what security features to look for at an online bank. First, make sure your future online bank online uses a reputable type of encryption. Second, make sure they offer all of the standard security features for an account, including: two-factor authentication, PIN codes, online ability to stop card access and transactions, and the like. Also, make sure the bank is FDIC insured and uses SSL-encrypted connections. There’s an easy way to do this: their webpage address should start with “http.”
Likewise, since security breaches have scared dedicated users away, any top online bank worth their sault will have a dedicated team of IT professionals who work on security measures. They stop fraud and scams within a few minutes of detection. When the user is away from their computer, it’s easy to steal information, so it’s an outstanding way to prevent it. If an online bank has all these features, and hopefully many more, along with great reviews, it might be worth considering switching!
Of course, picking a safe bank is an essential first step. However, online banking is also only as secure as you make it. Always make sure to employ standard safety measures, no matter how you bank. Change your password at least once a year, preferably every few months. Likewise, don’t use the same password for everything. That way, if hackers crack one password, they do not have access to your bank account as well.
Also, always practice smart online banking. Never log into your bank account on a public network or unsecured Wi-Fi. On your computers, install good antivirus and antimalware. As always, never open weird emails or text messages from addresses and numbers you don’t know. Banks will never ask you for personal information like PINs or passwords directly.
If you find a well-reviewed safe, online bank, however, it might be worth switching! “When that happens, you can take advantage of the benefits of online banking, like the lower fees and higher interest,” says Dave Ramsey, a famed financial expert.