Online banking comes with plenty of benefits – it’s easy, it’s fast, and it can be done from the comfort of your own home. Unfortunately, one of the downsides of online banking is the fact that fraudsters can also carry out their activities from home. Regional banks are one of the most common targets for fraudsters, and as they become more adept in exploiting vulnerabilities and stealing sensitive information, proactivity becomes imperative. Don’t rely on your bank to provide all the security you need – learn to spot the signs of fraud, recognize scams, and protect your personal information.
In this guide we’ll take a closer look at bank fraud and arm you with practical tips for securing your online banking accounts and personal information. Understanding how to protect yourself from bank fraud means you reduce the risk of falling victim to this particularly distressing crime.
Understanding Bank Fraud
Illegal bank transfers made up an astronomical $1.86bn in losses due to fraud last year alone. Bank fraud covers a wide range of criminal activity, all aimed at stealing money directly from bank accounts, and understanding some of the different types of online bank fraud is the first step in protecting yourself.
Types of Bank Fraud
- Phishing: Where fraudulent emails claiming to be from trusted entities (including your bank) trick you into providing them with personal information. This information is then used to access your bank account.
- Skimming: Stealing card information by using devices to monitor ATMs or payment terminals, and using this information to create fake cards and commit fraud.
- Identity theft: Using stolen information to gain access to and drain bank accounts while claiming to be the account’s owner.
- Account hacking: Criminals gaining access to your online accounts and controlling, draining, and monitoring them remotely.
- Check fraud: Altering or forging checks to illegally withdraw funds from accounts.
The Impact of Bank Fraud
Bank fraud can cause severe consequences for the victims, both financially and emotionally. Not only is there the initial loss of money, there’s also potential for damage to your credit score – which may cause additional financial problems further down the line. This can result in intense emotional distress and anxiety, and resolving the fraud can be incredibly time-consuming and challenging.
Securing Online Banking Accounts
Here are several steps you can take to better secure your online banking account.
Use Strong Passwords
Your passwords need to be complex; they should contain uppercase and lowercase letters, numbers, and special characters. It should also be at least 12 characters long. Avoid repeating passwords across different accounts – should one service provider fall victim to a data leak, you don’t want this to have negative repercussions for your bank account.
If you have difficulty remembering complex passwords, you can use a password management software to remember them for you, and automatically scan for data leaks.
Use Two-Factor Authentication (2FA)
Two-factor authentication (2FA) adds an extra layer of security by requiring a second form of verification to simply your password alone. This can come in the form of a code sent to you by SMS, a secondary authenticator app, or some kind of biometric verification such as facial recognition, or a fingerprint scan.
A common form of 2FA that quickly became outdated is a security question, e.g. your mother’s maiden name, or the name of your first pet. Unfortunately, this information is easily guessed, and can even be drawn out of people through internet trends.
Keep Your Software Updated
Making sure your banking apps and devices are up to date is incredibly important. Updates contain security patches that keep fraud attempts at bay. This back and forth, between criminals trying new techniques and software developers inventing ways to stop them, is continually evolving. If your software doesn’t update automatically, make sure to regularly check for updates.
Only Use Secure Connections for Online Banking
Never carry out any actions that require entering sensitive information unless you are totally confident in the security of the network you are connected to. Public Wi-Fi networks are often unsecured, and their vulnerabilities exploited by cybercriminals. Consider using a VPN to encrypt your internet connection for a layer of extra security.
Recognizing Phishing Scams
Phishing is a form of deception where criminals attempt to extract sensitive information from people by pretending to be people or service providers they trust. Phishing messages may be sent by text, email, or phone calls, and many may pretend to be from your bank.
Signs that a message may be a phishing scam:
- Poor spelling and grammar.
- Email address discrepancies; unusual domains, unrelated to the business it’s claiming to be from.
- Urgent language, implying that their message needs a prompt response and that there may be negative consequences if not.
If someone claiming to be from your bank has gotten in contact with you and requested any kind of personal information, you should contact your bank directly – and not on any of the links or numbers the suspicious message has provided you with. By verifying the messages through official customer service, you can avoid exposing yourself or your data to criminals.
Most banks tend to put out statements in their correspondence assuring you that they will never ask you to provide personal information by phone or email. They also tend to include another part of your personal information in their message to prove it is genuine – but phishing attempts have been known to copy this tactic.
If you believe you may have clicked on any phishing material without realising and worry your computer may already be infected with malware, it’s a good idea to invest in a product that can scan for and eliminate any threats – such as our .
Protecting Personal Information
Here are some ways in which you can safeguard your personal information in order to reduce the risk of online bank fraud.
- Limit information sharing where possible. Only disclose personal information when it is absolutely necessary, and not in places where it can be easily accessed online e.g. social media.
- Shred any physical documents that may be used to gain entry to your online banking accounts.
- Keep important documents stored securely.
- Only use encrypted channels when sharing personal information online.
- Don’t write passwords down anywhere they may be found and used by criminals.
Monitoring Financial Activity
While online banking services will undoubtedly have their own security measures in place, it’s still important to keep an eye on your bank account in order to catch any suspicious activity that may have slipped through the net. Review your monthly statements closely , and flag any unauthorized transactions or payments you don’t recall making.
Setting up alerts for your account can help with monitoring your banking activity – login notifications and transaction notifications mean you can catch fraud attempts quickly, and put a stop to them through the reporting measures your bank has in place.
Protect Your Investments with Iolo
Antivirus software is crucial in protecting your privacy and digital activities. At iolo we have a wide range of products and services dedicated to boosting your online security and allowing you to browse and bank in peace. Give yourself the comprehensive protection that your investments deserve with iolo.
