Online Banking: How to protect yourself

Learning for Life and Work
Jun 6, 2020
3 min read

Updated: May 16

In today’s digital world, online banking has become a popular way for people to manage their money. But what exactly is it?

Online banking (also known as internet banking) allows people to do most of of their banking using a computer, tablet or smartphone. Instead of visiting their local bank branch, they can log in to their account through the bank’s website or app and do things like check their balance, pay bills, or transfer money.

What are the advantages of online/internet banking?

It’s convenient – people can do their banking anytime, anywhere.
With internet banking, they don’t have to wait until the bank opens. They can manage their money 24/7 – whether they’re at home, on holiday or even out and about. This is really useful for people who are busy and need quick access to their accounts.
It helps people keep track of their money more easily.
Internet banking apps make it simple for people to check their account, see what they’ve spent, and keep an eye on their savings. They can also download financial statements instantly or move money from one account to another in just a few clicks.

What are the disadvantages of online/internet banking?

There are risks – not everyone can use it safely or easily.
Some people struggle with internet banking because they aren’t confident with technology or find it hard to remember passwords. Others may not own a smartphone or computer.
No face-to-face support if you need help.
If someone is having a problem or don’t understand something, internet banking means they can’t speak directly to a bank employee. For people who prefer asking questions in person or need help with a complex issue, this can be a major drawback.
There’s also a risk of identity theft or fraud – for example, someone might trick the person into giving them their bank details or hack their account to steal money.

Identity theft happens when criminals deliberately set out to gather and collect someone else's information such as their name, date of birth, address where they live. This information can be found on documents often thrown into the bin or if that person's online account has been hacked.

After identity theft happens, the thief/criminal usually goes on to commit identity fraud. Identity fraud is the deliberate use of someone else's identity to commit a financial crime by buying goods/services, pretending to be someone else, using their card/bank details.

Here are strategies to help protect you against identity theft and fraud while banking online:

Do not open emails from people you do not know

You should not open emails sent from an unrecognised email address and should not respond to threatening emails saying, for example, ‘act immediately or the account will be closed.’ If you receive an email or a phone call keep in mind that a bank or credit card company will never asks for your PIN or password or account numbers. You should delete the email or end the phone call immediately.

Create Strong Passwords

Use strong, unique passwords for your online accounts and change them regularly. Avoid using easily guessable passwords like "123456" or "password." Strong passwords make it more difficult for others to access your account.

Check Website Security

Look for "https" in the URL and a padlock symbol. These indicate that the site uses encryption to protect your information. Manually type in the URL/website address of the bank. Ensure also to set up two-step authentication. This makes it difficult for a stranger to access youronline bank account.

4. Use Security Software

Ensure your computer has the most up-to-date software, anti-virus, anti-spy and a firewall to protect your details. Regularly update security software on your computer to protect against viruses and malware. This adds an extra layer of protection when banking online.