internet banking safe essay

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Is Online Banking Safe? How to Boost Your Banking Security

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With online banking — that is, managing your bank accounts through the bank or credit union’s website or mobile app — you can monitor your balances to avoid fees, deposit checks, and send money to friends and family. Plus, you can maximize the interest you earn by using online-only banks, which feature the best rates. But a recent NerdWallet survey revealed that many banking customers are concerned about mobile app security.

Fortunately, you don’t have to trade convenience for security. Banking online is safe when secure bank technology on the back end is met with alert consumers on the front end. As an account holder, you have a role in making sure your accounts are protected.

On the back end, banks and credit unions employ policies to keep online customer accounts secure. Standard measures include using anti-virus protection and firewalls on bank computers, fraud monitoring, and website encryption, which scrambles data so only the intended recipient can read it. If you bank online, chances are your financial institution uses these security measures.

Here are steps you can take on the front end as a consumer to make sure your account is as protected as possible when banking online.

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Ways to improve your online banking security and protect yourself

1. Choose an institution that uses industry-standard security. You probably already want a bank or credit union that offers accounts with low fees and high interest rates. Add “top-notch security” to your checklist. Then, make sure your online accounts are backed by robust technology, like the measures mentioned above: firewalls, fraud monitoring and website encryption. Security features might be outlined on the bank's website or fine print. If you're having trouble finding that information, reach out directly to the bank.

2. Use multifactor authentication. Here’s how MFA works: When logging in, instead of just asking for a username and password, the financial institution requires you to provide another piece of information, or factor, to verify yourself. It could be a unique passcode sent to your smartphone as a text message, or even your own fingerprint. The point is, it’s another layer — one not as easy to steal as a password.

Many of the larger online banks — and traditional institutions with online accounts — adhere to these standards, so it should be easy to find a bank or credit union that fits the bill.

» Want to compare the top options? See our list of the best online banks

3. Skip public Wi-Fi for private banking. With a public network, you can’t be totally sure who sees what you send online, unless each page you visit is encrypted. The security of your private home network is ideal. If you have to log in while away from home, consider using your cellular data plan instead of Wi-Fi, or a virtual private network, known as a VPN. However you choose to log in, check for webpage encryption by making sure the address on the browser starts with "https" — the "s" signals that the page is secure.

4. Keep anti-virus software current. Make sure yours is up to date on your home computers and mobile devices.

5. Use long and complex passwords. Use combinations that are difficult to guess, such as a mix of uppercase and lowercase letters, numbers and symbols. Government websites generally require a minimum of anywhere from 12 to 16 characters for passwords, for example. But the longer and more complex your password is, the harder it will be to crack and the more likely it will be to provide protection against hackers. Consider using a password manager, which can be a helpful tool for generating and storing unique, complex passwords that are hard to crack .

6. Set up text alerts. Many institutions let customers choose to receive alerts by text or email whenever large transactions are made on their accounts or if the balance drops to a certain amount. If they see a purchase or transfer they didn’t make, customers can protect their account against further fraudulent activity by reaching out to the bank immediately. Customers have up to 60 days from the date on their bank statement to dispute any unauthorized charges on it.

» Concerned your account has been breached? Act fast to minimize the damage

Is online banking safe enough?

Online banking should be safe, as long as you take steps to protect your accounts and make sure your bank uses industry-standard security technology.

You can also keep your money safe by watching out for banking scams. For example, fraudsters often use so-called phishing scams, in which they send out emails or text messages pretending to represent a financial institution in the hopes of hooking an unsuspecting consumer.

The message might suggest there’s a problem with your account and ask for your bank password or Social Security number. Or it might say you won $100 million, but your account information is needed to wire the funds. If you reply, the criminal could use the information to illegally make purchases or withdraw money from your account. Don’t respond to emails or click on any links that are too good — or bad — to be true.

» Read more about common banking scams and what you can do to avoid them

Online banking is safe when your bank or credit union uses secure bank technology on the back end and you take security precautions on the front end.

When banking online, you can protect yourself and your money by taking a few key steps, including choosing a bank or credit union that uses industry-standard security, subscribing to text or email alerts for your accounts, avoiding use of public Wi-Fi and choosing complex passwords.

There’s no single bank or credit union that stands out among the others when it comes to online security. There are many banks and credit unions that offer industry-standard security practices. Institutions that offer a number of protective measures — including multifactor authentication, alert notifications and website encryption — can be considered safe and secure for online banking when used along with your own security precautions.

Some risks of online banking could be your account getting hacked or the website or mobile app not working or being down for maintenance when you need it. That’s why it’s important to bank with an institution that uses strong security measures to protect your accounts — and to take your own security precautions as well. By doing so, you can securely take advantage of the conveniences of online banking.

Online banking is safe

when your bank or credit union uses secure bank technology on the back end and you take security precautions on the front end.

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On a similar note...

Internet Banking Effects and Results Essay

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Introduction

Development history, technical description/process of how it works, effects of internet banking.

Internet banking has certainly played a key role in the increase and ease of banking services the world over, and the reasons for this are not difficult to discern. Online banking provides flexible opportunities for customers to access online services. The highly integrated Customer Relationship Management (CRM) supported by advanced software integrates the basic financial services in demand the world over by individuals and organizations.

The three central areas of organizational requirements that include operational, analytical, and collaborative are addressed. CRM and online banking systems and their benefits have generated few research studies but continue to grow and dominate the activities within the banking sector thus defining and shifting the culture in which we handle our finances. The reason I have settled on this topic is based on a personal experience I had with my Dad when I was very young. To access banking services, one had to not only keep time but also make a long line behind other clients. This is the exact position we found ourselves in some fifteen years back in our attempt to access banking services. That is no more because internet banking has revolutionized the culture in the banking industry.

At the beginning of the 20 th century in the United States, demand exceeded supply and this precipitated a move by the company to change their business strategies in concentrating on selling as many products as they could afford to. In this case, companies did not pay attention to the customer and the customer’s needs and requirements. Heiko, Wayne, and Robert (1994) explain that “suppliers focused on product development, manufacturing capacity, and securing distribution outlets, without regard to their consumers”.

In the middle of the 20 th century, however, the economic situation changes, and by this time consumers had the power of choice due to excess supply which exceeded demand. Heiko, Wayne, and Robert (1994) point out that “The era of the passive consumer was coming to an end. Companies began to find out what their customers were, what they wanted, and how they could be satisfied; they analyzed data about their customers and segmented them based on their demographics, such as age, gender, and other personal information. Then they promoted their product or service to a specific subset of customers and prospects”.

This period was characterized by target marketing where each company invested much of its efforts on four P’s (price, promotion, product, and placement).In this regard, the concept of CRM and internet banking came in the late 1990s. Although there is no clear definition of CRM, Fareena and Roy (2000) define it as follows: Customer Relation Management “is about understanding the nature of the exchange between customer and supplier and managing it appropriately. With the advent of internet banking, companies changed their business emphasis in increasing the ‘share of wallet’ of their customer. They developed a close connection with their customers and took into consideration the customer needs, requirements and demands. All these were done to satisfy customer demands as well as retain them.

The emergence of CRM on the other hand made marketers carry out a comprehensive analysis of the customer. This was done with to categories customer based on long term period and retention. Moreover, this strategy contributed to cross-selling and up-selling (Greiner, 1972). In addition to the above, the dynamics of changing demographics and consumer purchasing patterns, coupled with ever stronger competition, have certainly put increased pressure on banks to adopt cutting-edge technologies to meet the growing demands of the consumer. These have impacted a lot on the banking sector globally and as such have devised new avenues for driving customer relations and developing distinct competencies that will ensure their survival. The adoption of CRM and internet banking has brought with it several benefits both to the customers and the banks. The scale of operations has improved and banking services the world over have not only been made easier but have also recorded a decline in general costs. These have impacted immensely on the culture of how we shop, procure goods, access our cash deposits, and relate with our banking services providers. One fundamental aspect of quality life is the ease by which we access both goods and services in fulfilling the constant demands in our lives. This has been made so by the rapid development of internet banking that has revolutionized our shopping culture.

Internet banking; also referred to as e-banking allows clients to carry out financial transactions on a secure site that belongs to their banking services provider. This can either be a virtual bank or a credit union. They offer safe banking solutions to their customers on the internet and have been embraced by a large number of clients the world over due to their ease and convenience in accessing banking services. Common transactions that are offered by internet banking include bill payments, wire transfers, account-to-account transfers, loan applications, and the opening of new accounts. In addition to the above, it offers non-transactional services to the clients such as online statements and lives chats with the customer relations services. Security is handled by the authentication of a single password in the form of PIN/TAN or signature-based online banking that involves the digital encryption of all transactions.

In the analysis of the world’s economy, the online banking service sector has precipitated the increase in the number of those using banking facilities and drastically changed the culture of our banking and shopping. This translates to a more vigorous banking sector that can play an important in an economy. The general population has befitted immensely from the availability of loans and capacity to provide safe custody for the deposits at the touch of a mouse. Shortly, the rate of internet banking will depend on the rate at with the customers embrace and appreciate the use of internet banking in carrying out their financial transactions and the ability to instill mote secure online banking operations that can deal with cybercrimes.

Online banking has remained a business topic that has generated much impact because of its ability to only ease the banking process but also effectively deal with the increasing demands of fast, safe, and convenient banking services. This is because it has enabled us to acquire the basic goods and services with little effort in comparison to the traditional model of buying and selling. It is therefore worth appreciating that the little things that make human lives easy impact greatly on our culture.

• Fareena, G. & Roy B. H. 2000, Consumer Preferences of Internet Services Overtime: Initial Exploration. New York: Sage.
• Greiner, L. 1972, Evolution and revolution as organizations grow. Harvard Business Review , 50 (4), 37-46.
• Heiko, L.,Wayne, J and Robert, A. 1994, Retailing and Online Consumer Information Services. Washington: OLCISs.
• The New Auto: Purchasing or Leasing?
• Cost of Living in the US and China
• Psychological Profile of John Wayne Gacy
• Successful CRM Implementation in Banks
• The Works by Lu Huan and Wayne Thiebaud
• The Basics of Finance and Investment
• Soaring Wheat Prices Push Food Costs Up Worldwide
• Microfinance Institutions and African Economic Activities
• US International Monetary Relations
• Dubai's Debt Crisis & Global Economic Shock
• Chicago (A-D)
• Chicago (N-B)

IvyPanda. (2021, December 27). Internet Banking Effects and Results. https://ivypanda.com/essays/internet-banking-effects-and-results/

"Internet Banking Effects and Results." IvyPanda , 27 Dec. 2021, ivypanda.com/essays/internet-banking-effects-and-results/.

IvyPanda . (2021) 'Internet Banking Effects and Results'. 27 December.

IvyPanda . 2021. "Internet Banking Effects and Results." December 27, 2021. https://ivypanda.com/essays/internet-banking-effects-and-results/.

1. IvyPanda . "Internet Banking Effects and Results." December 27, 2021. https://ivypanda.com/essays/internet-banking-effects-and-results/.

Bibliography

IvyPanda . "Internet Banking Effects and Results." December 27, 2021. https://ivypanda.com/essays/internet-banking-effects-and-results/.

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Kailey Hagen has been writing about small businesses and finance for almost 10 years, with her work appearing on USA Today, CNN Money, Fox Business, and MSN Money. She specializes in personal and business bank accounts and software for small to medium-size businesses. She lives on what's almost a farm in northern Wisconsin with her husband and three dogs.

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Cole Tretheway is a full-time personal finance writer whose articles have been featured on The Ascent and The Motley Fool. He has a degree in English with a Certificate in Professional and Technical Communication from California Polytechnic University, SLO.

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Ashley Maready is a former history museum professional who made the leap to digital content writing and editing in 2021. She has a BA in History and Philosophy from Hood College and an MA in Applied History from Shippensburg University. Ashley loves creating content for the public and learning new things so she can teach others, whether it's information about salt mining, canal mules, or personal finance.

Online banks are some of the safest places to store your money. In fact, as long as they're FDIC-insured, online banks are just as safe as traditional brick-and-mortar banks. But it's important to follow standard web best practices when banking online.

Here's a closer look at how online banks protect your money, plus tips on how to keep money safe from hackers.

What is an online bank?

Online banks operate 100% online. They don't have any branch networks, so you manage your money from your phone or computer, occasionally stopping by an ATM when you need cash.

This model lets online banks save money on running the business. Banks pass these savings along to you in the form of higher annual percentage yields (APYs) and lower fees.

Apart from this, they're pretty much the same as traditional banks. And like traditional banks, online banks take big steps to protect your money.

How online banks protect your money

Are online banks safe? You'll be glad to learn both online and brick-and-mortar banks offer two types of protection: protection against hackers and protection against bankruptcy.

FDIC insurance

The Federal Deposit Insurance Corporation (FDIC) protects consumers against bank failure. Most online bank accounts are FDIC insured. In the unlikely event your bank goes out of business, the FDIC must recover up to $250,000 per account per bank.

Joint accounts are insured up to $250,000 per co-owner per bank. So if a married couple has a joint checking account, it would be insured for up to $500,000.

If you opt for an online credit union instead of an online bank, your money may not be FDIC insured, but it's still protected. Credit unions are covered by the National Credit Union Association (NCUA), and it offers similar insurance.

Encryption and two-factor authentication

Encryption helps protect your online banking information from hackers. Online banks use the same 256-bit advanced encryption standard (AES) that brick-and-mortar banks do. This is the same encryption the military uses to protect classified information.

But encryption doesn't protect against all hackers. Hackers can sneak into your accounts by effectively pretending to be you. Tactics include guessing weak passwords or sending you a phishing link to trick you into handing over sensitive information.

That's why many online banks now offer two-factor authentication, bonus security on top of usernames and passwords. It usually means entering a code that's texted to your phone. Enabling two-factor authentication makes it way harder for an identity thief to break into your account.

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How to know if an online bank is legitimate

If you're thinking about opening a checking account online -- or any bank account, really -- take the following steps to ensure you're working with a legitimate institution.

1. Check out its website and customer reviews

Poke around the bank website to see if anything seems off. Look at its "About Us" page for obvious errors, like a bunch of misspellings. That's a bad sign: It suggests the site was created in a hurry.

Google the bank and look for customer reviews. If you can't find any, or most reviewers call the bank a scam, stay away.

2. Verify it's FDIC insured

Most legitimate banks have an "FDIC insured" notice at the bottom of their website. But you can do more to confirm a bank is legitimate.

Use the FDIC's BankFind tool to verify an online bank has FDIC insurance. You can search by bank name, FDIC certificate number, or web address. If you can't find anything on your bank here, steer clear.

One thing to note: If you're working with an online bank that partners with a traditional bank, the two institutions might operate under the same FDIC certificate number. If that's the case, you may have to look up the partner bank for these details.

3. Look into the security measures the online bank takes to protect your money

Most banks have a page on their website detailing how they protect their customers' money, but if you can't find anything similar, you can ask the bank directly over phone or email. Ask about two-factor authentication as well.

Double check that the bank's URL begins with "https" instead of "http." The extra "s" indicates information on the website is encrypted and won't be easily hacked.

RELATED : Pros and Cons of Online Banks

How to keep your money safe when banking online

Most banks offer digital services these days. Banks do what they can to protect your information, but you should take precautions to keep your personal information safe. Here are a few tips to help you do that on the web or mobile banking apps:

• Always type your bank's web address into your browser. Don't click on links sent to you in an email or text message. This is probably a scam. Tip: Bookmark the web page for easy access.
• Never bank on a public wifi network. Hackers gain access to your financial accounts this way. Wait until you get home and use a private, password-protected network.
• Choose a strong password and change it periodically. Your password should contain upper and lowercase letters, plus some numbers and symbols. Don't write it down. There's a chance it could get lost or stolen.
• Use two-factor authentication. Set up two-factor authentication even if your bank doesn't require it. The extra step is a little more hassle, but it's one of the best ways to keep your account from being hacked.
• Set up activity alerts. Many online banks enable you to set up account alerts for suspicious account activity. This can help you catch identity thieves quickly, before they drain your account.

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Verify an online bank is legitimate by investigating its website, checking out customer reviews, and verifying the bank is FDIC insured.

Online banking is very safe, but you must guard your passwords and avoid banking on public wifi networks to prevent thieves from hacking your accounts. You also need to be on the alert for phishing scams that try to trick you into revealing your account information.

No. Online banks use the same encryption and FDIC insurance that brick-and-mortar banks do to protect their customers.

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Essay on Internet Banking

In this essay we will discuss about Internet Banking. After reading this essay you will learn about: 1. Meaning of Internet Banking 2. Objectives and Drivers of Internet Banking 3. Trends in India 4. Facilities Available 5. Emerging Challenges 6. Main Concerns 7. Strategies to be Adopted by Indian Banks.

• Essay on the Strategies to be Adopted by Indian Banks for Introducing Internet Banking 

Essay # 1. Meaning of Internet Banking :

With the growth of internet and wireless communication technologies, telecommunications etc. in recent years, the structure and nature of banking and financial services have gone for a sea change. Internet banking or e-banking is the latest in this series of technological wonders in the recent past which involves use of internet for delivery of banking products and services.

Even the Morgan Stanley Dean Witter Internet Research emphasised that web is more important for retail financial services than that for many other industries. Internet banking or e-banking is changing the banking and its structure and is having major effects on banking relationships.

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Banking activity is now no longer confined to the branches where a customer has to approach the branch in person, for withdrawing cash or deposit a cheque or request for a statement of Accounts.

In accessing a true internet banking, any inquiry or transaction is processed online without any reference to the branch (anywhere banking) at any time. Thus providing Internet banking is gradually becoming a “need to have” than a “nice to have” service.

The net banking is, therefore, more of a norm rather than an exception in many developed countries because it is the cheapest way of providing banking services. Under this system, online banking is possible where every bank customer is provided with a personal identification number (PIN) for making online transactions with the bank through internet connections.

Internet banking or e-banking falls into four main categories, from Level 1—minimum functionality sites that offer only access to deposit account data—to level 4 sites highly sophisticated offering, enabling integrated sales of additional products and access to other financial services—such as investment and insurance.

In other works, a successful internet banking solution offers:

1. Exceptional rates on savings, CDs and IRAs.

2. Checking Account with no monthly fee, free bill payment and rebates on ATM surcharges.

3. Credit card facilities with low rates.

4. Easy online applications for all accounts including personal loans and mortgages.

5. 24-hour account access.

6. Quality customary service with personal attention.

Essay # 2. Objectives and Drivers of Internet Banking :

The internet has developed level playing field and thereby afforded open access to customers in the global market-place. Internet banking is a cost-effective delivery channel for the modernized financial institutions.

In this system, consumers are embracing many benefits of e-banking. To have access to one’s accounts at any time and from any location through world wide web (www) is a convenient practice, which was unknown a short time ago.

Thus, a bank’s internet presence transforms from ‘brochure/ware’ status to ‘internet banking’ status once the bank goes through a technology integration effort so as to enable its customer to access information about his or her specific account details.

Following are the six primary objectives or drivers of internet banking:

1. To improve customer access.

2. To facilitate the offering of more services.

3. To increase customer loyalty.

4. To attract large number of customers.

5. To provide cost-effective services offered by competitors.

6. To reduce customer attrition.

Keeping objectives in mind, the internet banking facilities has been progressing at a rapid pace throughout the world.

Essay # 3. Trends of Internet Banking in India :

In India, initially a beginning was made in internet banking only in some big cities which was just in rudimentary stage. After getting initial success, the internet banking facility is gradually being expanded in all cities and towns to make the system popular.

The banking industry in India is also facing unprecedented competition from non-traditional banking institutions which are now a day’s offering banking and financial services over the Internet. The deregulation of the banking industry along with emergence of new technologies are enabling the new competitors in the banking sector to enter the financial services market quite efficiently and quickly.

Core or Anywhere Banking:

In order to support internet banking facilities another new concept of banking i.e., core or anywhere banking is introduced. Initially introduced by the foreign banks, the same concept in new increasingly adopted by public sector banks and also the private sector banks.

Under this concept of banking, bank customers who have an account with any select branch can easily operate his account from different designated branches on the bank spread throughout the country.

Under this system, a customer can avail cash withdrawal, cash deposit, transfer of funds, inter-city and intra-city transactions, collection of draft and cheques etc. facilities from any of such designated branches conveniently irrespective of its locations.

Core banking concept has improved the standard of the banking services with the help of modern technology. In present times, most of the public sector banks have already adopted this concept and started extending these facilities to its customers gradually by including more and more of its important branches under this category.

Progress of Internet Banking:

In India, internet banking is gradually being developed throughout the country.

As per the recent study it is observed that:

(a) A number of banks have already adopted internet banking and are offering varied kind of services through it,

(b) These internet sites generally offer only most of the basic services. Only 50 per cent are known as ‘entry level’ sites offering little more than company information’s and basic marketing materials and 10 per cent are offering ‘advanced transactions’ such as online funds transfer, transactions and cash management services etc.; and

(c) Most of the foreign and private banks in India are much advanced in terms of the number of sites and their level of development in terms of rendering advanced technology linked services to its customers. Recently, an authority of ICICI Bank observed, “Our Internet banking base has been growing at an exponential pace over the last few years. Currently around 78 per cent of the bank’s customer base is registered for Internet banking.”

Security Precautions :

In order to make their bank account safe, one should follow certain security precautions. Customer should never share personal information like PIN number, passwords etc. with anyone, including employees of the bank. It is important that documents that contain confidential information are safeguarded. PIN or password should be changed immediately and memorized before destroying the mailers.

Customers are also advised not to provide sensitive account-related information over unsecured e-mails or over the phone. He must take simple precautions like changing the ATM, PIN and online login and transaction passwords on a regular basis. It is also important to ensure that the logged in session is properly signed out.

Essay # 4. Facilities Available Under Internet Banking in India:

Following facilities are made available for customers under internet banking in India:

(i) Bill Payment Service:

Bill payment service is a utility service of internet banking. Accordingly, each bank has tie-ups with various utility companies, service providers, insurance companies across the country. Such tie-ups can facilitate online payment of bills of electricity, telephone, mobile phone, credit card, insurance premium bills etc.

In order to make online payment of bills, a simple one-time registration for each bills has to be made and a standing instruction has to be made to make online payment of recurring bills automatically. Most interestingly, the bank usually does not charge customers for such online bill payment.

(ii) Fund Transfer:

Internet banking has made provision for transfer of any amount of fund from one account to another of the same or any other bank. Accordingly, customers can send money anywhere in India. Once a customer logs in his account, he needs to mention the payee’s account number, his bank and the branch. The transfer will take place in a day or so, whereas in a traditional method it takes about three to four working days. ICICI Bank recently reported that its online bill payment and fund transfer facility have been most popular online services.

(iii) Credit Card Customers:

Internet banking provides the facility of credit card to its customers. With internet banking, customers can not only pay their credit card bills online but also gets a loan on their cards. Not just this, they can also apply for an additional card, request a credit line increase and in case the card is lost, one can report lost card online.

(iv) Railway Pass and Online Booking:

Through Internet banking facility to issue Railway pass is also available. Indian Railways has tied up with ICICI bank for this purpose and one can now make railway pass for local trains online. The pass can be delivered to the customer at his doorstep. Initially, the facility was limited to Mumbai, Thane, Nashik, Surat and Pune. The bank would just charge Rs 10 + 12.24 per cent of service tax. Moreover, online booking of e-tickets of Railways, Airlines etc. can also be made with some arrangement with banks through Internet banking.

(v) Investing through Internet Banking:

Through Internet banking, opening a fixed deposit account has become easier. A customer can now open an FD account online through funds transfer. Online banking can also be a great friend for lazy investors. Moreover, investors with interlinked de-mat account and bank account can easily trade in the stock market and the amount will be automatically debited from their respective bank accounts and the shares will be credited in their de-mat account.

Besides, some banks provide its customers the facility to purchase mutual funds directly from the online banking system. Nowadays, most leading banks offer both online banking and de-mat account facilities. However, if a customer is having his de-mat account with independent share brokers, then he needs to sign a special form, which will link his two accounts.

(vi) Recharging Prepaid Phone:

Through Internet banking, recharging of prepaid phone has also become possible. It is no longer needed to rush to the vendor to recharge prepaid phones as and when talk time runs out. Here the customer just tops-up his prepaid mobile cards by logging in to Internet banking. By just selecting operator’s name, entering mobile number and the amount of recharge, the prepared phone of the customer is again back in action within few minutes.

(vii) Shopping at Fingertips:

Internet banking provides facility of shopping at fingertips. Leading banks have tied-up with various shopping websites. With a range of all kind of products. One can shop online and the payment is also made conveniently through his account. One can also buy railway and air tickets through Internet banking.

Essay # 5. Emerging Challenges of Internet Banking in India :

In India, a large sophisticated and highly competitive Internet Banking Market is gradually being developed with market pressure and is subjected to the following emerging challenges:

1. Demand side pressure due to increasing access to low cost electronic services.

2. Emergence of open standards for banking functionally.

3. Growing customer awareness and need for transparency.

4. Global players in the fray.

5. Close integration of bank services with web based E-commerce or even disintermediation of service through direct electronic payments (E-cash).

6. More convenient international transactions due to the fact that the Internet along the general deregulation trends, eliminate geographic boundaries.

7. Move from one stop shopping to ‘Banking Portfolio’, i.e., unbundled product purchases.

The Internet and its underlying technologies have been changing and transforming not just banking but all aspects of finance and commerce. It usually represents much more than a new distribution opportunity. Internet banking will also enable nimble players to leverage their traditional brick and mortar presence for improving customer satisfaction and gain share.  

Essay # 6. Main Concerns in Internet Banking :

Internet banking in India has its areas of concern. In the mean time, a number of cases related to fraud and cheating of banks and customers by unscrupulous persons have already been lodged in India with this type of banking facilities. Irrespective of that attempts have been made by the RBI and the banking authorities for promoting safety and soundness of online and e-banking facilities in the country by issuing necessary guidelines.

In a recent survey conducted by the Online Banking Association, member institutions rated security as the most important issue of online banking. Thus there is a dual requirement to protect customers privacy and product against fraud.

Banking Securely:

Online Banking provides an overview of Internet Commerce and how one company can handle secure banking practices for its financial institution clients and their customers. Moreover, some basic information on the transmission of confidential data is presented in Security and Encryption on the web. In this respect, PC Magazine Online also offers a primer as to how encryption works.

Besides, a multi-layered security architecture comprising firewalls, filtering routers, encryption and digital certification ensures that customers account information is protected fully from un-authorised access in the following manner:

(i) Firewalls and filtering routers ensure that only the legitimate Internet users are usually allowed to access the system.

(ii) Encryption techniques used by the bank (including the sophisticated public key encryption) would ensure that privacy of data flowing between the browser and the Infinity system is protected.

(iii) Digital certification procedures provide the assurance that the data a customer receive is from the infinity system.

Essay # 7. Strategies to be Adopted by Indian Banks for Introducing Internet Banking :

In present times, Internet banking has no alternatives. Indian banking is gradually getting more and more access of Internet banking. Thus, Internet banking would drive us into an age of creative destruction due to non-physical exchange; complete transparency is also giving rise to perfectly electronic market place and customer supremacy.

At this moment, the question may be asked “what the Indian Banks should do under the present circumstances?” Whatever is the strategy chosen and options adopted, certain key parameters would largely determine the success of banks on web.

In order to attain long term success, in respect of Internet banking, a bank may follow:

(i) Adopting a webs mindset.

(ii) Catching on the first mover’s advantage.

(iii) Recognising the core competencies.

(iv) Enabling handling multiplicity with simplicity.

(v) Initiating senior management to transform the organisation from inward to outward looking.

(vi) Aligning roles and value propositions with customers segments.

(vii) Redesigning optimal channel port-folio.

(viii) Acquiring new capabilities through strategic alliances.

However, the above mentioned steps can be implemented by following four steps mentioned below:

(i) In the first phase, the customer be familiarized to new environment by demo version of software on banks, website. This will enable users to give suggestions for improvements, which can be incorporated in its later versions wherever possible.

(ii) The second phase provides various services such as account information and balances, statement of account, transaction tracking, mail box, check book issue, stop payment, financial and customized information.

(iii) The third phase may include additional multi-utility services like fund transfers, DD issue, standing instructions, opening fixed deposits and intimation of loss of ATM cards.

(iv) The final phase should include advanced corporate banking services like third party payments, utility bill payments, establishment of L/Cs, Cash Management Services etc. Enhanced plan for the customers in future may include requests for demand drafts and pay orders and many more to bring in the ultimate in banking convenience.

Thus by following the above mentioned strategies, it will help banks to translate their traditional business model into a Internet banking one, falling into the following three main categories:

(i) One-stop shop.

(ii) Virtual one stop shop.

(iii) Best of Breed Supplier.

Thus by following the above steps, the Indian bankers can pave the way for the successful introduction and popularizing the new concept of Internet banking on a large scale.

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Is Digital Banking Safe to Use in 2023? Explore the Pros and Cons!

Demystify the safety of digital banking in 2023 as you explore its pros and cons. Embark on a journey into the realm of online financial services and uncover the robust security measures that safeguard your transactions and personal information.

Read more posts by this author.

As per Statista's recent predictions, engagement with online banking is expected to follow an upward trajectory from 2021 to 2024. 2020 witnessed a staggering 805 million active online banking users globally, projected to crest at approximately 1 billion by 2024.

Reflecting on the monetary aspect, the digital banking market, valued at roughly $47.4 billion in 2021, is forecasted to skyrocket to a colossal $2.05 trillion by 2030.

A pioneer of this transformation, the banking and financial sectors began adopting digital strategies as far back as the 1990s. Traditional brick-and-mortar banks, recognizing the convenience and efficiency digital technology offered, swiftly transitioned to online platforms, a move that proved to be a resounding success and catalyzed other banks to follow suit.

However, while offering many advantages, online banking also has its share of drawbacks.

In this blog post, we will focus on questions such as: what exactly are the advantages and disadvantages that consumers experience in digital banking? And how has the advent of digital banking revolutionized the financial landscape? Join us as we delve into this fascinating topic!

What Are the Pros and Cons of Digital Banking?

Digital banking demonstrates the most significant transformations in the banking industry. Conventionally, many established banks and FIs were not proactive in embracing a comprehensive online banking product suite as the digital transformation took time and labor with risks of data loss.

Because of the recent technological advancements in the financial sector, many financial establishments are adopting digital banking. Here are some of the significant benefits and risks of embracing digital banking in today's world:

Pros of Digital Banking

• Adaptability

Digital-only financial institutions and banks are more highly adaptable than conventional banks. These digital banks are startups letting them become more agile than major banks with thousands of employees. Consequently, these banks can incorporate features long before conventional banks start.

• 24/7 access to banking services

This is the most significant benefit of digital banking. You can get round-the-clock access to your bank account with a digital bank. You will never need to wait for long working hours to deposit your funds and obtain an account statement, transfer funds, and modify your account details. The best part is that you can access your bank anytime and anywhere.

• Digital banking solutions for business

While signing up for digital banking, you may conveniently regulate all your finances online. It's the right strategy for people who work for longer times and have to travel long distances to deposit cash in a bank branch.

Recent research by Statista shows that 73% of UK inhabitants actively use online banking. Most polled people said they prefer to regulate their cash using their smartphones.

Therefore, using digital banking to handle your money means you don't have to wait in long queues. You can access your accounts anytime and anywhere.

• Seamless online experience

Bain and Company has conducted a survey showing that digital banking providers are better than brick-and-mortar banks in areas that highly matter to customers. It includes the simplicity, speed of transactions, and quality of banking experience.

Some Limitations of Digital Banking

• Internal restrictions

A cultural revolution is necessary for both the financial industry and staff if banking needs to be entirely digitized. But it's great to know that banks have a distinct way of departmentalization, which significantly affects the technology level.

A computerized financial system will help certain divisions, forcing some departments to make workforce reductions. Training for staff members might also be necessary.

• Issues related to security breaches and identity theft

Smartphone apps and online banking platforms must be secure as banks install novel safety measures. Nevertheless, not every system is entirely safe, and hijacked accounts may result in security breaches and identity theft because of stolen login credentials.

Even though you use a smartphone or digital banking with utmost confidence, be wary of using insecure networks. Moreover, you must not change passwords too frequently and protect your login credentials.

• Depositing cash could be a challenge

Checks are simple to deposit from your phone with online banks, but money can be a little more challenging.

For instance, you might need to locate an ATM that accepts deposits. Alternatively, you might have to deposit into a regular bank account and then into your online account. You might alternatively use cash to purchase and instantly deposit a money order through the mobile app of your online bank.

• Lack of human interaction

Apart from the convenience of digital banking, the lack of human interaction is the biggest con. Despite giving consumers fast, round-the-clock access to their accounts, digital banking sometimes lacks the private touch of in-person contact with bank employees.

Customers sometimes require assistance to receive the help or guidance they need. Customers who are older and may not feel comfortable utilizing computers or mobile devices will notice this disadvantage more.

Impact of Digital Banking on Financial Inclusion

Wondering how digital banking has transformed the financial landscape? The banking or financial industries are facing technological modifications by introducing novel financial products provided digitally from both banking and non-banking sectors.

McKinsey reported that digital finance is "financial services provided via mobile phones, cards, and internet." Moreover, digital financial inclusion is the utilization of financial services by excluded and underserved members of the population.

The full impact and future possibilities of digital financial services are advances that won't be known until they've been put into practice. According to Hanning, the director of the Association for Financial Inclusion, "The widespread use of online finance will have an important effect not only on the accessibility of financial services but also comprehensive economic expansion."

Furthermore, online banking can give 1.6 billion people in emerging markets the opportunity to utilize financial services based on their research on seven nations: Brazil, The People's Republic of China, Ethiopia, Mexico, Nigeria, India, and Pakistan.

The widespread adoption of digital finance can potentially boost developing nations' GDPs by 6%, or $3.7 trillion, by 2025—a growth comparable to Germany's economic growth .

The interaction between people and their funds and institutions has radically changed due to the advancement of technology in banking. It provides a variety of advantages, including ease, 24/7 possession of your money, automated payments, reduced expenses, excellent interest rates, and improved banking service.

It's nevertheless necessary to be mindful of its disadvantages, such as security risks, the potential for technological difficulties to lock you out of your account, and the propensity for spending the funds on items you hadn't planned for.

Most individuals will discover that the advantages exceed the disadvantages. However, remember to take the necessary precautions to protect your money to make the most of digital banking.

Explore here Why Digital Banking is Growing at Lightning Speed: A Complete Guide on Financial Industry's Revolution

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What Is Online Banking?

How online banking works.

• Online Banks

Pros and Cons of Online Banking

What do you need for online banking, how can you safely use online banking, frequently asked questions (faqs), the bottom line.

• Personal Finance

What Is Online Banking? Definition and How It Works

Investopedia / Daniel Fishel

Online banking allows you to conduct financial transactions through the internet. Online banking offers customers almost every service traditionally available through a local branch including deposits, transfers, and online bill payments.

Virtually every banking institution has some form of online banking you can access through a computer or app. Online banking is also known as internet banking or web banking.

Key Takeaways

• Online banking allows you to conduct financial transactions through a computer or smartphone using the internet.
• With online banking, you don’t need to visit a branch to complete many transactions.
• Many online banks offer lower fees and better rates than their brick-and-mortar competitors.
• To take advantage of online banking, you’ll need an electronic device, an internet connection, and perhaps your debit card or account numbers.

Online banking is a popular way of doing business with a bank. With online banking, you aren't required to visit a bank branch to complete most of your basic banking transactions. You can do all of this at your convenience, wherever you want—at home, at work, or on the go. Online banking can be done using a browser or app. Mobile banking is online banking that is done on a phone or tablet.

Here are some of common ways you can use online banking.

Bank Anytime

With online banking, you don’t need to visit a physical bank branch but you can do it wherever you want—at home, work, or on the go. In addition, you can typically do online banking 24/7. However, customer support might not be available at all hours.

Access Accounts With Browsers and Apps

You can do online banking through a financial institution’s web portal using a web browser (such as Chrome or Safari) through a mobile app. This allows you to access services from many locations.

Deposit Checks

You can usually deposit a check through a mobile app using a process known as remote deposit capture . Enter the check amount, then use the app to take a photo of the front and back of the check to complete the deposit.

Manage Finances

Many banks and credit unions offer tools to help you review and balance your budget built into apps or websites. You may also be able to track spending trends, or track savings toward a goal. 

Perform Other Financial Services

Online banking transactions vary from one financial institution to another. Most banks generally provide essential services such as electronic transfers and bill payments. Some banks even let you set up new checking or CD accounts or apply for credit cards through web portals. Other online functions include ordering checks, stopping payments on checks, or reporting a change of address.

Online banking may provide fewer services than traditional banking does. For instance, you can’t exchange foreign currency.

You may be unable to complete a credit application online, such as a mortgage application. Instead, some banking business must be carried out at a bank or credit union branch.

Online Banks 

Online banks operate exclusively online, meaning they don’t operate branches where you can conduct business in person. The best online banks offer low-cost or free banking, plus above-average interest rates on savings accounts , certificates of deposit (CDs) , and money market accounts .

These banks handle customer service by phone, email, or online chat rather than in person. Prominent online banks in the U.S. include Ally Bank , Discover Bank , and Synchrony Bank .

Online-only banks might not provide direct automatic teller machine (ATM) access but usually enable customers to use ATMs at other banks and retail stores. They might even reimburse some or all of the ATM fees other financial institutions charge. The savings gained by not maintaining physical branches typically allows online banks to deliver significant savings on banking fees.

While you can deposit or take out a certain amount of cash at an ATM or store, most online banks impose a dollar limit.

As of October 2023, just 6% of U.S. adults with bank accounts reported their primary bank was an online-only bank.

Fast and efficient

Easy to monitor accounts

Customer service challenges

Tech and connectivity required

Hacking risk

Pros explained: 

• Convenience : Basic banking transactions can be done at any time of day or night, seven days a week. If your bank offers a payment network such as Zelle , you can use your online bank account to send money to a person or business. You can also open and close various accounts online, such as checking and savings accounts.
• Fast and efficient : Funds can be transferred between accounts almost instantly, especially if the two accounts are held at the same institution. Plus, mobile check deposits can be made in just a few minutes.
• Ease of monitoring accounts : You can closely monitor your accounts to spot suspicious activity. Around-the-clock access to banking information provides early fraud detection, serving as a guardrail against financial losses.

Cons of Online Banking 

• Customer service challenges : Sometimes, you might need to visit a branch to handle certain transactions, such as buying a cashier’s check. In other cases, you might not even have access to a branch. Furthermore, you may prefer depositing checks, withdrawing money or discussing your financial needs face-to-face.
• Tech and connectivity required : Some customers may need to be more comfortable with the tech-heavy aspects of online banking. For example, they may need help with some online tasks, such as setting up automatic payments . In addition, online banking depends on a reliable internet connection. Connectivity issues make it difficult to process transactions when you want to.
• Hacking risk : Although security continually improves, online accounts remain vulnerable. Customers should use their wireless plans rather than public Wi-Fi networks when logging into an online bank account. This can help prevent unauthorized account access.

To take advantage of online banking you’ll need an internet connection and an electronic device like a computer or mobile phone. After setting up your account, you’ll keep handy a debit or other bank card, and access to your account numbers.

Setting up your online banking account can also be reasonably straightforward. But you’ll need a few things to set up an online checking account or savings account, just like a brick-and-mortar bank account. The bank will spell out exactly what you need on its website, but it typically requires: 

• Your name, date of birth, address, and other information
• Social Security number
• Government-issued ID with a photo, such as a driver’s license or passport
• A way to fund your account

To shield your money and your personal information from cyber crooks, you should take these safety precautions:

• Set a strong, unique password, and change it regularly. The federal Cybersecurity & Infrastructure Security Agency recommends a password with at least 16 characters. The password should contain a random string of uppercase letters, lowercase letters, numbers, and symbols.
• Rely on a password manager to help discreetly set and remember passwords.
• Enable two-factor authentication or multi-factor authentication if it’s available. This involves using at least two forms of identification, such as a password and a fingerprint, to access an online account.
• Never provide your online banking details to other people.
• Avoid online banking when using public Wi-Fi, such as at a coffee shop or restaurant.
• Check your accounts regularly for suspicious activity and report suspected fraud immediately.

Can You Use Online Banking to Pay Bills?

You can use online banking to pay bills by logging into your online banking account to arrange bill payments electronically or by check. Online bill pay is a simple way to take care of your bills and help ensure you're always on time with payment by setting up automatic payments. It works especially well for bills with regular, set amounts, such as a mortgage payment, insurance premium, or car payment. 

What Is the Best Online Bank?

The best online bank for you will depend on your banking service needs and priorities. Investopedia's choice for the best online bank overall is Ally Bank. Our top choice for savings is Synchrony Bank and our top choice for checking is Discover.

Online banking is a fast, inexpensive, and convenient way to handle many of your everyday financial needs. You can probably access online banking if you already do business with a bank or credit union. All you need to do is sign up for online banking services. And while you can use online banking features from a traditional bank, picking an online-only bank for your banking needs might boost the interest you earn on savings and help reduce fees.

Consumer Financial Protection Bureau. " Online and Mobile Banking Tips for Beginners. "

Civic Science. " Online-Only Banks Are Gaining Ground With Gen Z ."

Cybersecurity & Infrastructure Security Agency. " Use Strong Passwords ."

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Online Banks Vs. Traditional Banks: Which Are Better?

Fact Checked

Published: Aug 24, 2023, 9:10am

Online banking lets you manage your money from anywhere at any time, and it’s outpacing in-person banking. More than three in four Americans say they’d rather bank via a mobile app or website than go into a local branch.

While most financial institutions offer digital banking, online banks operate fully online and often have more robust, user-friendly websites and mobile apps than traditional banks. Often, these digital banks also tout lower fees and more competitive interest rates. But for some people, traditional banks may win out.

What Is Online Banking?

Online banking is banking that takes place digitally through a computer or smartphone. Most financial institutions now allow customers to access their accounts online through a website or mobile app and complete basic actions like balance inquiries, electronic transfers and bill payments.

There are also online banks , which are financial institutions that operate mostly or fully online—like Ally Bank , Vio Bank and Axos Bank . Online banks don’t typically have physical branches, although some hybrid banks like Capital One 360 operate a handful of brick-and-mortar locations. Like traditional banks, online banks are usually chartered and insured by the FDIC to keep your deposits safe.

With online banks, you can take care of all your banking needs electronically, including:

• Opening a new account
• Depositing checks
• Transferring funds
• Paying your bills
• Tracking expenses
• Saving money

Many online banks operate ATM networks where you can deposit and withdraw cash, often without fees. Others may offer ATM fee reimbursements for using out-of-network ATMs.

What Are the Advantages of Using Online Banks?

Because online banks are completely digital, they tend to have lower overhead costs and focus more on building user-friendly, feature-rich mobile apps and websites. This allows them to offer the following perks:

• No or low fees. Most online banks don’t charge monthly maintenance fees. And others, like Discover Bank , go even further by eliminating all common banking fees , including overdraft fees or out-of-network ATM fees. Almost all of the best no-fee checking accounts and best no-fee savings accounts are available with online banks.
• Competitive interest rates. Online banks tend to offer the highest annual percentage yields (APYs) on deposit accounts. Online banks also have many of the best high-yield savings accounts and high-yield checking accounts . If you’re looking for the best CD rates , credit unions and online banks usually come out on top.
• Low or no minimum deposit requirements. Unlike some traditional banks, most online banks don’t require you to maintain a minimum balance. They also tend to have low or no minimum deposit requirements to open an account.
• Early paychecks. If you get direct deposits from an employer, some online banks, like Capital One and SoFi , will let you get paid up to two days early.
• Automated bill payments. Online banks make it easy to schedule automatic bill payments electronically so you can avoid missing payments and track when money will be withdrawn from your account.
• Mobile check deposits. Most online banks let you deposit checks electronically by snapping a photo of your check and uploading it to the mobile app.
• Free ATM withdrawals. Some online banks operate fee-free ATM networks that are just as, if not more, expansive than those offered by traditional banks. Others, like Charles Schwab Bank , don’t have ATM networks but offer ATM fee reimbursements.
• Additional perks. Many online banks entice customers with benefits like cash-back debit cards , generous bank account sign-up bonuses and in-app saving and budgeting tools.

What Are the Drawbacks of Online Banks?

While online banks excel in many areas, there are some drawbacks to keep in mind:

• Cash deposits and withdrawals may be limited. While some online banks let you use an ATM to deposit cash, others don’t accept cash deposits at all. Some online banks that only offer savings products might not offer ATMs or allow you to withdraw cash. Instead, you’ll have to withdraw funds by transferring them to an external account.
• Most don’t have physical branches. Unless it’s a hybrid bank like Capital One, online banks don’t have branches you can visit, so you won’t be able to access in-person financial services.
• The range of account offerings may be limited. Most online banks offer fewer financial services than you’d find at a full-service traditional bank. An online bank may only offer a checking account, a savings account and a CD account, while big national banks like Chase and Bank of America offer a full range of lending and investment products in addition to bank accounts.

Are Online Banks Better Than Traditional Banks?

Online banks are better than traditional banks when it comes to minimizing fees and securing the most competitive rates. These banks also tend to offer superior websites and mobile apps with more features.

When it comes to finding a full range of financial services all in one place, traditional banks tend to win out. Plus, if you like banking in person or need to deposit cash, traditional banks may be better for you.

To reap the best of both worlds, consider having traditional bank accounts for in-person service and online accounts for low fees, high APYs and other perks.

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Is online banking safe?

Yes. Online banking is safe with proper precautions. The following sections detail safety steps for online banking and ways your information may be compromised.

Visit bank by typing the address

Many attackers get into someone's bank account by tricking a user into thinking they're logging into their account when they're really not. This technique, known as phishing , is often done through e-mail. For example, a phishing e-mail may indicate you must verify a purchase or something else that requires you to log in to your bank account via a link in the e-mail. In reality, the e-mail link points to a fake page that logs your account information when entered.

Phishing can be avoided by never clicking a link to visit your online bank. Instead, to log in to your bank, visit it through a bookmark you created in your browser or by typing your bank's URL (Uniform Resource Locator).

Make sure the page is secure when entering data

All Computer Hope pages, including this one, are secure and show all the above.

New versions of Google Chrome may hide the start of the URL. You should still see a lock, but to see the front portion of a URL in the address bar, you must click in the address bar twice.

When you visit your online bank login page, verify you see this lock before entering your username and password. If you do not see this, do not log in to the page.

Click the lock icon in most browsers to view the website's security information, including their certificate details.

Never send usernames, passwords, etc. through e-mail

No bank ever requests you to send personal information over e-mail . Never send your username, password, PIN (Personal Identification Number), account information, credit card, etc. over e-mail. E-mail is unencrypted and, if intercepted by a third-party, could be read. It's also often stored on a server; if that server is compromised, the attacker could read that e-mail with your information.

Be cautious where you log into your bank

For most users, we suggest only logging into your online bank page while at home. Your place of work can install key loggers or use other methods of monitoring you while online. Someone who has access to this information could access the keystroke logs, which would contain everything you've typed, including your usernames and passwords.

Wireless network

On a wireless network , all information sent to and from your computer to the wireless router may be intercepted by someone nearby. Therefore, when you log in to your online bank page while on a wireless network, make sure the network you're connecting to is secure using WPA (Wi-Fi Protected Access).

Friend's house

Be concerned when logging in to an account from a friend's computer. A computer you're not familiar with could intentionally or unintentionally log usernames and passwords that could be used to access your account.

Use a strong password

The password you're using to log in to your online bank should be a strong password. What this means is that it shouldn't be something easily guessed, such as your pet's name. Your banking password should have a number, special character, and different capitalization. See the password definition for additional information, links, and examples.

Enable two factor authentication

Most banks today have some form of two factor authentication . Enabling this service on your bank and your e-mail account helps protect your account even if someone were to have your username and password.

Don't save your bank password

Browsers can save your username and passwords and enter them automatically to make it easier to log in to an account. We recommend not using this feature for your online bank account. It may be more difficult to enter this information each time you visit your bank, but it helps keep your account safer.

Make sure your computer is protected

Finally, it's always a good idea to protect your computer. When an attacker attacks or infects a computer, they could install a keylogger that logs each keystroke you enter on a computer. These can capture your username, password, and confidential data.

Related information

• How to prevent unauthorized computer access.
• How to protect yourself while on the Internet.
• Computer security help and support.

Sniff Out Scams: How to Protect Your Bank Account from Fraud

In an increasingly digital world, protecting your bank account from fraud is more important than ever. Cybercriminals constantly find new ways to access personal and financial information, making it essential to stay vigilant and informed. 

Landmark National Bank wants to help you keep your finances safe. This bank account protection and fraud prevention guide provides practical advice to help you shield your bank account from fraud and ensure peace of mind.

Fraud Prevention Basics for Bank Account Protection

Understanding how to prevent bank fraud requires understanding what criminals look for. One of the most effective ways to prevent bank fraud is to be cautious about sharing personal information over the phone, email, or social media, as scammers often impersonate legitimate institutions to access your sensitive information. This can include:

• Your Social Security Number (SSN)
• Bank routing and account number
• Credit card number
• Online banking login
• Any passwords

Creating strong, unique passwords for your online accounts is also crucial. A robust password combines uppercase and lowercase letters, numbers, and special characters while avoiding easily guessable information like birthdays or pet names. We recommend using a password manager to generate and store complex passwords securely.

Another important security measure is enabling two-factor authentication (2FA) . This additional step requires a second form of verification, such as a text message code or face scan, before accessing your account. Even if your password is compromised, 2FA significantly reduces the risk of a thief gaining unauthorized access.

How To Secure Your Online Banking Credentials

While online banking offers convenience, it also comes with a small (but not insignificant) risk of cyberattacks. To make safe online transactions and prevent bank fraud, avoid using public Wi-Fi when accessing your bank account online. Public networks are less secure, making it easier for hackers to intercept your data. Always use a secure, private connection.

Regular software updates are another one of our most important secure banking tips. Keep your operating system, browser, and banking apps up to date to ensure you have the latest security patches to protect yourself against known vulnerabilities.

Be cautious of fake banking apps as well. Only download banking apps from the official app store, and verify that the app is from your bank. Cybercriminals sometimes create fake apps or ads that look identical to legitimate ones, tricking users into entering their login details. 

Additionally, always log out of your online banking session when you’re finished to prevent unauthorized access—especially if you’re using a shared device.

What Is Phishing?

Phishing is an increasingly prevalent cybercrime tactic where scammers impersonate legitimate organizations to steal personal information like your passwords and credit card numbers. These fraudulent messages often appear to come from trusted sources like your bank or a popular retailer.

They may include links to fake websites that capture your information or push you toward downloading malicious attachments. Phishing scams can be delivered through email , text messages, social media, and phone calls, and are designed to blend in with normal alerts.

Raise Your Phishing Scam Awareness

If you’re wondering how to avoid phishing scams, it starts with recognizing the common tactics scammers use. 

One of the most obvious signs of a phishing attemp t is a suspicious email address. These emails often come from addresses that seem legitimate but contain subtle misspellings or extra characters. Always verify the sender’s email address before clicking on any links or downloading attachments.

Another red flag is the use of generic greetings. Scammers frequently use phrases like “Dear friend…” or “Hello you…” instead of your name since they reuse the same message each time. If an email or message doesn’t address you personally, it’s wise to exercise caution.

Phishing scams often create a sense of urgency, pushing you to act quickly to avoid negative consequences, such as account deletion or fraud detection. You may even be falsely threatened by someone claiming to represent a government agency like your local police department or the Federal Bureau of Investigation. Before you take action, take a moment to verify the message’s legitimacy by contacting the organization directly.

When it comes to links within emails, hover your mouse over them before clicking to reveal the actual URL. This practice allows you to determine whether the link matches the official website. If the URL looks suspicious, it’s best not to click it.

How To Make Safe Online Transactions

Making safe online transactions is a vital part of bank account protection and fraud prevention. To ensure your safety, use secure websites that display HTTPS encryption in the address bar, indicated by a padlock icon. This encryption ensures that your payment details are transmitted securely, reducing the risk of interception by hackers. 

Many banks offer transaction alerts that notify you of any activity on your account. When you’re making online payments, be cautious with the payment methods you utilize. Wire transfers, prepaid cards, and cryptocurrency transactions are difficult to trace and recover if something goes wrong. Only use these methods with trusted recipients if necessary.

Benefits of Regular Account Monitoring

Regularly monitoring your bank account is one of the most effective methods of fraud prevention. By frequently reviewing your account activity, you can spot unauthorized transactions early and take immediate action. The sooner you notice an issue, the faster you can report it to your bank, minimizing potential losses.

Monitoring your account also helps identify suspicious patterns, such as small, frequent transactions or purchases in unfamiliar locations. Staying on top of your account activity ensures that you’re aware of your spending habits and can maintain control over your finances.

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St@_y $@FE b-@nK $aFe

When someone asks for CVV, OTP, ATM PIN, Passwords 2. Use a mix of characters (Capital letter, Upper/Lower cases, etc.) 3. Don't use people's names of special dates. 4. Change your password regularly.--> Chup ho jao Jao Jao!

Axis Bank is steadfast about protecting your finances and privacy and preserving your trust. We also request you to do your part in safeguarding your information. Whenever you’re using internet banking services, keep certain precautions for online banking in mind for a secure banking experience. For safe banking, install firewall and antivirus services on your PC, log-off your account after use, change your passwords regularly, and never write down your passwords or provide your information to telemarketers.

• Bank Online Safely
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• Avoid Online Frauds

Keep these tips in mind while banking online:

• Avoid using internet banking on shared computers and public places like cafés and libraries.
• Always remember to log-off on internet banking and close your browser when you have finished your online banking.
• Disable the 'AutoComplete' function within your browser.
• Install firewall and anti-virus software and keep it up to date to help detect and disable malicious software.

Guidelines to create a strong password

A strong password is the key to secure your bank account and protect your personal details from hackers, and a good password is the one that is extremely difficult to guess by any human or machine. This password strength can only be achieved by making it complicated by incorporating the following characteristics:

Characteristics of strong passwords

• Make your passwords long. Have at least 8 characters.
• Use a mixture of characters including both uppercase and lowercase letters.
• A mixture of letters and numbers will make the password even more strong
• Add at least one special character, like.,! @ # ? ]

While everyone tries their best to create strong password, there are always some loopholes that can make such passwords weak and susceptible to risk.Following are some of those examples:

Examples of weak passwords

• If the password is a word that can be found in any dictionary, in any language (e.g., cylinder or cilindro).
• A series of characters on a keyboard (e.g., qwerty or poiuy).
• A series of characters or in a repeated manner (e.g., CCCC or 12345).
• Personal information like birthdays, Aadhaar number, names of pets, friends, addresses).

Creating a strong password is not the only thing to keep your bank account secure forever, the next step is to maintain a strong password for a long period of time. Here are some important tips to do that:

Tips for keeping your password secure

• Keep changing your password once every three to six months.
• Immediately change your password if you have the slightest suspicion that the password is being accessed by someone else.
• Never save passwords or use it on unofficial websites.
• Avoid typing it on computers that you do not trust; for example, in an Internet café.
• Never save it for a web form on a computer that you do not control or that is used by more than one person.
• Never tell it to anyone.
• Never write it down.

Make sure your account information is safe

• Change your internet banking password regularly and never disclose it to anyone.
• Always use strong password with alphanumeric passwords which cannot be guessed easily and for multiple accounts, use different passwords.
• Do not write them down.
• Do not give your account information to telemarketers or to callers claiming to confirm or verify your account information.

A safe banking which is easy on your pocket

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This is to inform you that by clicking on the "Accept" button, you will be accessing a website operated by a third party namely . Such links are provided only for the convenience of the client and Axis Bank does not control or endorse such websites, and is not responsible for their contents. The use of such websites would be subject to the terms and conditions of usage as stipulated in such websites and would take precedence over the terms and conditions of usage of www.axisbank.com in case of conflict between them. Any actions taken or obligations created voluntarily by the person(s) accessing such web sites shall be directly between such person and the owner of such websites and Axis Bank shall not be responsible directly or indirectly for such action so taken. Thank you for visiting www.axisbank.com

This is to inform you that by clicking on the hyper-link/ok, you will be accessing a website operated by a third party namely Such links are provided only for the convenience of the Client and Axis Bank does not control or endorse such websites, and is not responsible for their contents. The use of such websites would be subject to the terms and conditions of usage as stipulated in such websites and would take precedence over the terms and conditions of usage of www.axisbank.com in case of conflict between them. Any actions taken or obligations created voluntarily by the person(s) accessing such web sites shall be directly between such person and the owner of such websites and Axis Bank shall not be responsible directly or indirectly for such action so taken. Thank you for visiting www.axisbank.com

Cover arranged by Axis Bank for its customers under Digit Illness Group Insurance Policy (UIN GODHLGP20142V011920). Participation to group insurance is voluntary.

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