Online Banking Safety

Online Banking Safety Tips

If you're concerned about security and safety in online banking, you're a smart cookie - your investments are too valuable to fling to the Internet without understanding some features and tips for online banking safety.

Make Sure It's Legit

If you're thinking about banking online, it's a good idea to simply use the online services of a reputable bank such as Washington Mutual or Bank of America. If you're going with a less popular bank, make sure you do your research - read the bank's website, talk to a human representative if possible while setting up your account, and verify your money is going where you think it is.

Protect Your Privacy

Your bank's website should use encryption and Secure Socket Layer, a secure server technology, to scramble your personal information and prevent it from falling in the hands of identity thieves. Your bank's website should have information about its encryption system - if you have questions, contact a bank representative and ask what the bank is doing to protect your valuable personal information. Your bank should also have a privacy policy that is either accessible via their website (look near the bottom of the page for legal and privacy information) or that they are willing to send to you via U.S. Mail.

Use Common Sense

If a bank has you assign a unique username and password, make sure it's different from your e-mail and other passwords and do your best to come up with a memorable but unique username. This will ensure that you're the only person who can log on to your account, even if your children or other family members have emergency access to other passwords. Don't do your personal banking on public computers such as those available at libraries, and avoid using the work computer for your personal banking if possible. Take control over who can access your computer - if you wouldn't trust them with a large bank deposit for your personal account, they shouldn't be privy to your personal information.

Consider Virus Protection Software

It might not occur to you, but viruses can also endanger your online banking safety. Up-to-date virus protection software and a firewall system ensure that your Web traffic isn't anyone else's business and that your system doesn't have weaknesses that can be exploited to steal your information or tamper with your account.

Know Your Options

All reputable banks in the U.S. are insured by the FDIC (Federal Deposit Insurance Corporation), which both insures deposits and provides consumer information about banks. Luckily, this protection extends to all customers of FDIC-insured banks, whether they make their deposits and withdrawals behind the counter or behind a computer monitor. The FDIC should be your first stop for filing a complaint or getting more information if you think you're being defrauded.