Watch Out While Banking Online

We live in a highly-automated and digitally-advanced world of technology where everything, including most of our banking requirements, can be fulfilled with just a few clicks and at our convenience. Online and digital banking has become so popular, especially among young adults, that these platforms have in many ways replaced traditional banking. Visits to a bank branch are now more out of choice than a compulsion.

The transition from physical to digital banking and the plethora of tech-driven products and solutions have made banking easier and efficient than before. The scope and scale of digital and online banking have grown manifold, especially since early 2020 when the novel coronavirus brought the world to a near standstill. However, while non-traditional modes of banking have been a game-changer for both banks and customers, they are not without risks. For example, recently, the RBI had a challenging task of monitoring instant loan apps promoted by non-NBFCs.

While the onus of security and data protection is largely on banking institutions, customers also have a responsibility to adhere to certain secure practices and safeguard their accounts and transactions. The key is to ensure that no personal information is shared with anyone without solid credentials. As a rule, banks never call their customers over the phone to seek information such as login and password or details of transactions.

A good thumb rule to ensure secure banking would be to follow these 10 safety measures at all times.

Keep personal information personal: Avoid sharing your login details, password, and OTP with others, including close relatives and friends. 

 Change passwords regularly: Changing passwords regularly is the best way to secure a virtual bank account. Use strong passwords for net banking, credit, and other accounts, and change them often. Also, never leave a digital trail of your passwords. Many users often leave these sensitive details as notes on their phones or exchange them over cross-platform messaging and voice services.

Choose an account/transaction with two-factor authentication: Two-factor authentication, or 2FA, provides an additional layer of security that makes it difficult for a fraudster to hack into a device or computer. 2FA immediately notifies the account holder whenever someone tries to login with their credentials.

Monitor accounts regularly: Monitoring your account balance and statement regularly will help you to keep track of unauthorised transactions. Check every transaction since you last logged in and if you find any anomalies, contact your bank immediately.

Secure your laptop/computer and keep it up-to-date: The use of updated antivirus software ensures protection against trojans, key loggers, and other malwares that can be used to gain access to financial data. The operating system and other software should be kept up-to-date so that there are no security loopholes. Install an antivirus on your phone if you use the device frequently for banking. Also, remember to lock your phone when not in use to prevent unauthorised user access. Check your phone settings and enable the auto-lock feature. This will buy you some time if your phone is stolen.

Always log out: Always log out of an online banking session and close the browser. This will lessen your chances of falling prey to session hijacking, which can happen when the user has failed to log out of a session.

Browse safely: Restrict private accounts on a public-use computer. If you must use a public computer, avoid logging into secure sites that store information. Make sure that the browsing history is erased, including cookies, before leaving. Another mistake that most of us do is accept the prompt of saving passwords and allow automatic logins for future banking sessions. This practice may save a few minutes of your transaction session but if you lose your phone or laptop, you provide access to other individuals on a platter. 

Avoid sign-in through random emails: Never click on the links that you may receive in your mail asking you to sign in to your bank account. This can be a fraudulent email that is similar to the one your bank sends you. Such links look genuine but they are not. So remember never to enter personal information and delete the email.

Sign-up for alerts from banks: Most banks allow their customers to set up alerts for unusual activity through their web portals or mobile apps. Common alerts are for logins, withdrawals, account closure and new check orders. This provides you with access to real-time banking transactions and alerts you to any wrongful action. 

Be wary of online ads: There are several different kinds of advertisements that promise incentives to a user such as lotteries, freebies and fake charities. Make sure to validate these schemes as they are another way to glean your personal information.

Online or digital banking can be fast, smooth, convenient, and even a delight provided you take all of the above measures to protect your banking activities including accessing your account, transferring funds and changing passwords. 

 The author is Head (Branch Banking), RBL Bank

DISCLAIMER: Views expressed are the authors' own, and Outlook Money does not necessarily subscribe to them. Outlook Money shall not be responsible for any damage caused to any person/organisation directly or indirectly.