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How Secure is Online Banking?


Advancements in technology have completely changed how we manage our finances. Previously, visiting a local branch was the only way to access a bank account. Now, we can manage our accounts online and via mobile. With a few taps on a screen, we can check transactions, pay bills, and carry out a host of other tasks.

Banks must protect our data from hackers with robust security measures. In this article, we will run through some of the most common ones and explain how you can protect yourself further.

What Are the Digital Security Measures?

Banks keep financial accounts as secure as possible through multiple security protocols. These include:

Multi-Factor Authentication (MFA)

MFA is a standard protective measure for online banking. It requires you to enter a password,  number, or code that’s sent to your mobile. It provides another barrier for would-be hackers to get past. 

Biometric Authentication

A fingerprint, face recognition, or voice command can confirm you’re the account holder. It’s commonly used for banking customers who access their online banking via an app on their mobile device.

Data Encryption

Most banking apps have a built-in encryption system. However, you can encrypt everything flowing to and from your device by using a VPN service for online banking. Your device sends all your data to the VPN server through an encrypted tunnel. This makes it extremely hard to read if a snooper intercepts it.

Account Freezing

Account freezing is helpful if you’ve lost your bank card. The contactless spending limit increased to £100 in 2021, so a thief could spend a lot of your money just by stealing your card. You can stop anyone else from using your card when you freeze it via your banking app.

Automatic Sign-Out

It can be easy to forget to log out of an app, especially if you do your banking on the go. Another standard security measure is for your login to time out after a while. If anyone uses your smart device or accesses your desktop computer, they can’t access your online banking account.  

How to Spot a Scam

Phishing scams have become increasingly prevalent. You must take the time to identify any signs of a fraudulent email or text. Remember, banks never ask for personal information in an email or text.  Banks also will not call you asking for your account passwords.

If you’re ever in doubt, don’t respond or click any links and contact the bank directly. Report the incident to Action Fraud and your local police if you think a scammer has got the better of you.

What Can You Do to Stay Protected?

Banks have a lot of security measures in place to protect your data. However, you can help keep your money and account information safe by staying alert and informed about potential scams.

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