8 Tips to Protect Your Online Banking Information

October 11, 2021 Mutual Fund

Internet stands for Interconnected Network, that helps connect computer systems across the globe and has changed human life all together. As the internet received worldwide acceptance in the late 1990s, most leading banks in India started offering online services to their customers. There is a sea change in the nature of banking, where a customer may not necessarily approach the bank branch for withdrawal or deposit. Internet banking has come a long way from operating online basic tasks only in a branch to making online application and disbursement of loans from the comfort of our homes. Nowadays, with a low internet cost and an increased awareness of internet banking, more than 50% of Indian customers prefer online banking over traditional/ offline banking. However, recent studies have shown that more than 36% of the Indians were cheated through internet scams with an average financial loss of Rs 8.19 Lakhs. Therefore, it is essential to know about the precautionary measures which you can take to keep your online banking secured.

What is an Internet Banking?

Internet banking, also known as online banking or net banking, is a facility offered by banks for their customers to use banking services over the internet making their banking experience more convenient.

It allows you to perform various tasks online, without personally approaching the branch. Here are few examples of the tasks you can do with just using a computer/mobile and having an internet connection:

• Check your bank account balance or statement

• Make or liquidate the fixed and recurring deposits

• Fund transfers and merchant payments

• Request for a bank account chequebook

• Buy or redeem mutual funds

• Buy life insurance or general insurance

• Pay your credit card bills and utility bills, like electricity bills, mobile postpaid bills, etc.

• Activate or deactivate your debit and credit cards

• Apply for various types of loans

• Recharge DTH or prepaid mobile

As online banking gives you the access of your bank account 24×7 from the comfort of your home, it has gained a lot of popularity in the last decade. Furthermore, many leading banks, such as HDFC Bank, ICICI Bank, Axis Bank, etc., always encourage their customers to use internet banking by providing them proper assistance at the branch, providing special offers on net banking and mobile banking app, and making some special services exclusively for online banking.

8 Practical Tips for a Secured Internet Banking:

If you do not take necessary precautions while using net banking or mobile banking app, online banking can open up several security risks. Here are some practical tips that can make your online banking safe and secure:

1. Avoid Public Computers and WiFi:

Many people still use public computers from cyber cafes or libraries. However, such places are often crowded and there are chances that someone sees your login credentials or you might mistakenly save them on a public computer. Such crucial information can be used by hackers to steal money from your bank account. Therefore, it is advisable to avoid using public computers for online banking. But, if you have no choice, you need to take extra precautions and safeguard your account. Make sure no one is around you and check for the cameras that might capture the Information you input. Plus, once you are done do not forget to clear the history from the browser, in order to delete any saved information of your bank credentials.

Apart from this, nowadays, we find public WiFi spots everywhere and it is tempting people to use them. However, one should avoid using public WiFi as there are more chances of electronically eavesdropping while using a public network. Many public WiFi networks are unencrypted and therefore, hackers can steal your sensitive data for their gain. But, if you have to use it during an emergency, you should always check if the website is encrypted or not by checking if the website URL starts with https. Read the red flag if the website URL starts with http. Moreover, if you are tech-friendly, it is advisable to disable file sharing and use Virtual Private Network (VPN), which can only be used by you.

2. Choose a Strong Password and Change It Periodically:

People generally set their passwords based on their personal information like name and date of birth, which is easy for them to remember. However, such passwords can easily be guessed by hackers. Therefore, as all the banks advice, it is vital to set a strong and unique password and change it after every three months. While creating a password, the bank will advise you on how your password should be, such as it should be of a minimum of eight characters, a combination of numbers and alphabets, a combination of uppercase and lowercase, special characters, etc. Apart from this, you should take these extra precautions while setting your online banking password:

• Never use your personal information, such as your name, your spouse's or child's name, pet's name, your or your close one's date of birth, hometown or current city name, etc. to create your password.

• Always set longer passwords, choose phrases instead of single words.

• Always try to avoid using common words or sequences, such as 1234, 0000, abcd, etc. in the password.

• Do not forget to change your password after every three months and avoid repeating the old passwords. Come up with a new password every time you change it.

3. Use Two-Factor Authentication:

Many banks are now offering two-factor authentication for logging in to internet banking. It is advisable to enable it as it adds a second layer of security to your online banking information.

Different banks require you to use different authentication. You need to check which authentication is added by your bank by logging into your net banking. The most used types of second authentications are – four-digit Personal Identification Number (PIN), One-Time-Password (OTP) on your registered mobile number or/and email address, identification of a preselected image, automated phone call on your registered mobile number, etc.

Although it makes the login process a little slower, it is worth for the security it provides to your banking information.

4. Be Careful When Clicking on the Website or Downloading the App:

We receive several informative and marketing emails from the banks and all the time that consists the link of bank’s official website. There are many incidents where fraudsters send similar emails to individuals, asking them to click on the URL to get benefited from certain offers. If you click on the URL, it will take you to a website that is designed exactly like your bank’s website, which gives you confidence that you are using the authentic website. However, when you input your login credentials, it records the data you have inputted. This information is further used by fraudsters to steal your money. Some mailers may ask you to click on a certain URL, and while doing so, it starts downloading the tracking malware to your device. Therefore, it is advisable to check the sender of an email whenever it directs you to perform an action. Instead of clicking on any link, it is better to type the website link by yourself. And, whenever you click on a bank’s website, even from a search page, recheck if it is an official authentic website of the bank or not. Also, do not forget to check if the URL starts with an https.

The same applies to downloading a mobile banking app of the bank. The fraudsters can create similar looking mobile banking apps to steal your login credentials. Therefore, it is advisable to check whether it is an official app or not. Most banks provide links or scanning codes to download the app, which can be very helpful in getting the trusted app. So, be very careful before downloading any app or putting your login credentials.

This practice of identity theft is called phishing, and it is one of the most common types of stealing personal information.

5. Never Share Your Login Credentials:

Although this could be the most common advice people receive on safe online banking, a large number of people still ignore it. But, here we are saying it again – do not share your login details, PINs, debit and credit card number, CVV number on the back of your card, or OTP, etc. with anyone. Fraudsters usually call senior citizens, homemakers, etc. and pretend to be a bank representative. No bank requires such sensitive information to perform any banking transactions, and they never ask for it. So, think twice before taking any action.

6. Check Your Account Statement:

Many people know how much they have transacted during the month, and they do not even open the monthly bank statement they receive from the bank. However, it is advisable to check your transactions, especially when you do high-value transactions online, and if there is any discrepancy, you should inform your bank immediately. Moreover, a monthly assessment of bank statements is highly advisable since it will not only help you know about the unauthorised transactions, but also give you an idea of your spending pattern, which will help you control any unnecessary spendings in the future.

7. Enable Transaction Alerts:

You may forget to check your transaction details after performing a particular transaction. But, enabling SMS and email transaction alerts can help you to keep an eye on your bank account. You will receive a notification whenever a transaction takes place in your account, and if you have not done it, you should immediately inform your bank. Furthermore, you can also set daily/weekly balance alerts if you do not get time to check the entire statement.

8. Use Antivirus Software:

While browsing the internet, several viruses like Trojan or malware and spyware can get installed on your computer. Such viruses not only track your online activity but can also read all your sensitive data, such as your personal information, passwords, debit and credit card numbers, CVV, PIN, etc. To avoid this, it is recommended to install antivirus software and renew it on a timely basis. Moreover, nowadays the usage of mobile phones has increased tremendously and the frauds are mostly happening through mobile phones which are higher in number than on computers. You should be careful while downloading any unauthorised apps as they can read all your sensitive information. Therefore, it is advisable to use antivirus on your mobile phone as well.

Final thoughts:

Internet banking and mobile banking are the most convenient ways to perform banking transactions. The banks take many precautionary measures to avoid such fraudulent activities by providing multi-factor authentication, data encryption, making it mandatory to change your net banking password after every three to six months, and so on. Furthermore, the Reserve Bank of India (RBI) has stated that for any unauthorised or fraudulent transaction you can get a full refund if you inform the bank immediately. However, the process can be tedious and time-consuming. Hence, as discussed above, it is an equal responsibility of the customers to take necessary precautions at their end.

This article first appeared on PersonalFN here