Online banking has changed the way we manage our money. With the click of a finger, you can transfer funds, access investments, or put some money away.
Sadly, this makes hacking easier for malicious actors. Bank scams are a common way for cyber criminals to access people’s personal and financial information. It’s no wonder people feel unsafe when it comes to online banking.
Common Online Banking Scams
Digital scammers have gotten a lot more sophisticated with their tricks to keep up with the development of online banking. They’ve created smart tactics to exploit users by gathering their confidential data. From passwords for security questions to account numbers.
Being aware of the common scams these criminals use is important, so you’re always one foot in front of them. Here are some of the scams they use:
Phishing Scams
Phishing scams are one of the most common tactics scammers adopt because of the number of people they can target. Bad operators design emails from big-name banks that look like they’ve come from them directly. They’ll usually ask the user to confirm their identity with personal information and steal it to access their accounts.
According to a study by StationX, around 3.2 billion phishing emails are delivered daily worldwide. So, the chances are you’ve received one before. If you get an email from your online bank asking you to provide your data, contact them before doing anything.
Virus Downloads
Another well-known online banking scam involves emails containing viruses. The email will look like a phishing email, but it will also include a downloadable file containing a virus. After the virus is on your device, the hackers will try to blackmail you. Often, they’ll offer to remove the virus in exchange for your online banking details.
Remote Access Scams
In this case, the scammer will call you directly, acting like they are a staff member from your bank. They’ll pretend there’s an issue with your account and ask you to download remote access software on your device. Then, they’ll attempt to pay themselves and get you to grant permission for it to go through.
Automatic Debit Scams
Scammers don’t need to go to you directly to get your information. Sometimes, they go to other sources you’ve provided your details to and hack them instead. With this information, they can debit the account whenever they want.
Luckily, most online banks are aware of this method. They’ve started to notify their users every time there’s a transaction for confirmation before approval. However, it depends on the banks.
Online Banking Safety Tips
You can’t rely solely on your bank to safeguard your funds. It’s important to take some extra measures yourself for an extra layer of protection.
Here are some online banking safety tips you can take:
Use a Dedicated IP VPN
A dedicated IP VPN is a great way to use your online bank without worrying about getting hacked. They’re IP addresses layered with encryption, allocated to one device rather than sharing it among others.
It’s beneficial to use a dedicated IP VPN because online banks sometimes drop your connection. They often do this when you try to enter from a random location. Using this tool will help you avoid having to keep going through the verification process.
Don’t Use Public WiFi When Banking
Accessing your online banking app on public WiFi should be a big no-no. These networks are often unsecured and can be hacked easily, opening yourself up to unnecessary risk.
According to gathered data, 28% of all WiFi networks around the world are unprotected. They can be accessed by anyone to view the user’s information with little to no effort.
Turn On Banking Notifications
Yes, constant ads flood your notifications, but they can save you money and headaches if someone tries to hack you.
If you enable notifications for specific actions with your bank, they’ll notify you whenever something suspicious happens to your account—whether it’s a failed login attempt or a withdrawal.
Set Up Two-Factor Authentication
Strengthening your security with one extra measure is a good way of deterring cyber intruders. Two-factor authentication adds an additional step in the login process for your online bank.
This could be asking you to confirm a code sent to you via message on your phone. Sometimes, a staff member from the bank will contact you with a code. You’ll have to type in the app when prompted to do so.
Make Up a Security Question
Security questions have been around for years with all types of online accounts. They’re specific questions only you know the answers to, so the chances of guessing them are nearly impossible.
You can choose to have your security question asked every time you log in to your online banking. Or if there’s a login from a random location.
Create a Difficult Password
The harder you make your banking password, the harder it will be for intruders to get into your account. Using a password you haven’t used for any other account is important. You never want to be in a situation where two accounts get compromised at the same time.
Adding numbers, capital letters, and unique characters can make your password more difficult to guess.
A Few Final Thoughts
It’s normal to feel unsafe with online banking. After all, your savings are at the mercy of money management services, which are strictly digitalized. However, following the tips above will help you stay safe and gain an edge over potential trespassers.
