Expert Tips for Safe Online Banking
February 16, 2023
Online banking allows us to pay bills, check our balances, and transfer money at our fingertips. It has become increasingly popular for our financial transactions to take place online. As we become more reliant on online banking, it is essential to remember that with convenience comes a heightened risk of fraud. Consumers reported 2,878,566 incidents of non-identity1 theft fraud in 2021, which resulted in more than $6.1 billion in financial losses.
More than 78% of Americans prefer to do their banking digitally2. Fraudsters are constantly trying to get access to your financial information and money. Fraud losses can take place across all stages of your online journey, including opening a new account, an account login, or the distribution of funds from a bank, investment account, or a loan. In a recent study of banking institutions, the distribution of funds was identified by 43% of respondents as the phase of the customer journey most susceptible to fraud3, followed by the account login. Protecting yourself during these activities is essential to safe online banking. Affinity’s team of experts suggests watching out for these warning signs and implementing the below safe practices:
4 Warning Signs of a Scam
- Contact you out of the blue - Unknown communications could come from anywhere, either a knock on the door, a phone call, or a piece of mail you weren’t expecting.
- Request you to wire money - Being asked to wire money or purchase prepaid debit cards is one of the easiest ways for fraudsters to get their hands on your money.
- Claim there is an “emergency” - Fraudsters might warn you that if you don’t respond immediately, your prize winnings will be lost, or a friend or family member is in trouble in a foreign country and ask you to take immediate action.
- Asking for personal information - Those with ill intent can pose as banks, health care providers, or government officials asking for identifying personal or financial information. Anytime someone asks you for this information, it is a reason to be suspicious.
5 Online Banking Safety Tips
- Changing your passwords - Every three months, you should change your password to create a robust and unique password in case your phone gets lost or stolen.
- Don’t keep your accounts logged in - When you are done online banking, make sure to log out of the browser or app.
- Avoid banking on public WIFI - Public WIFI is only sometimes secure when accessing your bank account from a shared computer or in a public space.
- Don’t provide your bank account or personal information via email - You should never be asked for your social security number, bank account information, or credit card information through email for any reason.
- Checking your account regularly - It’s important to review it regularly to ensure there are no unauthorized charges or withdrawals.
By remaining vigilant, you can avoid common scams. Affinity is dedicated to helping its members get out of unfortunate situations. At Affinity Federal Credit Union, we offer automated fraud alerts and can report any suspicious activity at Member Solutions Hub4 at 800-325-0808.
This information is for informational purposes only, is intended to provide general guidance, and does not constitute legal, tax, or financial advice. Each person’s circumstances are different and may not apply to the specific information provided. You should seek the advice of a financial professional, tax consultant, and/or legal counsel to discuss your specific needs before making any financial or other commitments regarding the matters related to your condition.
2Retrieved from: https://www.forbes.com/advisor/banking/digital-banking-survey-2022/
3Retrieved from: https://bankingjournal.aba.com/2022/01/study-banks-see-rise-in-fraud-attempts-associated-costs-in-2021/
4Retrieved from: https://www.affinityfcu.com/personal-banking/banking/credit-card/fraud-alerts