Can You Really Trust Online Banking? The Honest Answer for Seniors

Remember what a pain in the keister it was to drive to the bank every time you had to deposit a check?

Hey, don’t get me wrong. I quite enjoy it when people want to send me money! 😉

But it’s so much easier to make bank deposits now. Just fire up your bank’s online appAn app, short for application, is a type of software designed to help users perform specific tasks o... More, snap a few pictures, and you’re rolling in dough!

That said, with cyber threats frequently making headlines, you may wonder if online banking is really safe to use.

And when you’re dealing with your financial info, that’s a very valid concern.

So let’s take a closer look at the safety of online banking.

We’ll cover if it’s safe to use, how banks protect your financial information, and things you can do to bank safely online.

The Basics: Is Online Banking Safe?

Short answer: Yes, online banking is safe.

Longer answer: It’s safe if you take a few precautions—kind of like how your house is safe when you remember to lock the door, shut the windowsWindows is a widely used operating system developed by Microsoft Corporation, designed to provide a ... More, and maybe put that fake “Beware of Dog” sign in your front yard (even if you only have a cat).

Banks use fancy things like encryptionEncryption is a way to protect sensitive data by turning it into unreadable code using complex math.... More (don’t worry, no test on that later) to keep hackers from sneaking in.

They’ve also got people and algorithms watching for suspicious activity, so if someone tries to buy a diamond-encrusted hammock from Brazil using your account, your bank will probably notice before you do.

Key Takeaways for Safer Online Banking

Now, let’s get to the important part: what you can do to stay safe while banking from the comfort of your couch (or your favorite recliner with a cup of tea).

Passwords and Two-Factor Authentication (2FA2FA, or Two-Factor Authentication, is a security measure that uses two different types of proof to v... More)

Remember the good ol’ days when your ATM passwordA password is a string of characters used to verify the identity of a user during the authentication... More was your birthday, your pet’s name, or your grandchild’s nickname?

Yeah, don’t do that.

These days, your password should be something even you have trouble remembering. Throw in a mix of numbers, symbols, and letters, and you’re off to a great start.

Then, take it one step further with Two-Factor Authentication (2FA). It’s like adding a second lock to your front door—sure, it takes an extra step, but it keeps the bad guys out. With 2FA, even if someone guesses your password (probably by hacking your brainwaves), they still need a second code to get in.

Avoiding Public Wi-FiWi-Fi, short for Wireless Fidelity, revolutionizes connectivity by enabling devices to access the in... More

Using public Wi-Fi to check your bank account? That’s like whispering your bank info through a megaphone at the mall. Sure, it’s convenient, but it’s also a hacker’s dream.

Stick to your home Wi-Fi or, if you’re out and about, use your phone’s mobile data instead. You wouldn’t give out your house keys to random strangers, so don’t share your banking info with them, either.

Recognizing PhishingPhishing involves cyber thieves creating fake communications, often appearing as emails from trusted... More Scams

Phishing: it sounds like a relaxing hobby, right? Wrong. Phishing is what happens when some sneaky scammer sends you an email pretending to be your bank (or your long-lost cousin) to trick you into handing over your login info.

Here’s a tip: If an emailEmail, or electronic mail, is a digital communication tool that allows users to send and receive mes... More says, “Act fast, or your account will be closed!”—ignore it.

Banks don’t do that. They’ll politely notify you about issues, not make you feel like you’re in a game show with a ticking clock.

Keeping Software Up to Date

Remember when your car would make that clunking noise, and you’d keep putting off getting it fixed until, suddenly, your brakes stopped working?

That’s what happens when you ignore those pesky software updates on your devices. Updates patch up security holes, so don’t delay. Keep things up-to-date, and you’ll be cruising along safely.

Tools to Make Online Banking Safer

Password Managers

Trying to remember a dozen complicated passwords is like trying to juggle flaming swords—it’s just not going to end well.

Enter password managers. These nifty tools store all your passwords in one safe place, so you only have to remember one password. It’s like having a personal assistant for your digital life, but without the gossip.

Bank Alerts

Set up bank alerts for things like suspicious activity or large withdrawals. This way, you’ll know right away if something fishy happens (no, not that kind of phishing).

You’ll get a text or an email saying, “Hey, did you really just spend $500 at the Fancy Yacht Store?” And you can respond with a quick, “Nope!”

VPNs (Optional but Cool)

If you really want to go the extra mile, you can use a VPN (Virtual Private Network).

Think of it as a private tunnel for your internetThe Internet is a vast network of computers and other electronic devices connected globally, allowin... More connection—hackers can’t see you while you’re in there. It’s like being a ninja on the internet, but you don’t have to wear a mask (unless you want to).

Common Myths and Misconceptions

Myth #1: “Online banking is riskier than going to the bank.”

In many ways, online banking can actually be safer than visiting your local branch.

Why? Because no one can “shoulder-surf” while you’re entering your PIN at home (unless you’ve got a very nosy pet).

Myth #2: “Hackers can steal my money easily if I bank online.”

Hackers aren’t magicians—they can’t just wave a wand and take your money.

Banks have security systems that are like a fortress for your finances. It’s actually harder for hackers to steal from an online account than from a wallet you leave in the back of a taxi.

Simple Checklist: How to Keep Your Online Banking Safe

Here’s your easy-to-follow checklist for banking safely online:

Use a strong, unique password.
Turn on Two-Factor Authentication (2FA).
Avoid using public Wi-Fi for banking.
Be suspicious of any emails asking for your login info.
Keep your software and apps up to date.
Set up bank alerts for unusual activity.
Use a password manager to keep track of your logins.

Print this list out, stick it on your fridge, and you’ll be all set!

Regulations and Industry Standards

When you bank online, it’s vital to know that there are multiple layers of regulations and industry standards designed to protect your financial information.

Government Legislation

The government plays a crucial role in ensuring your financial safety online. For instance, the FTC’s updated Safeguards Rule mandates that various financial institutions must develop and maintain comprehensive security systems.

This includes a range of non-banking financial companies, which are now held to higher standards to safeguard customer information. Legislation like this sets the baseline for financial security online.

Financial Industry Protocols

In addition to government regulations, the financial industry upholds its own protocols to enhance security.

A prime example is the implementation of mandatory notification requirements by federal banking agencies, as seen in the regulations put forth by the Federal Reserve System, OCC, and FDIC.

These protocols ensure that banks are proactive in communicating any security incidents, thereby improving response times and minimizing potential damages to consumers like you.

Conclusion: It’s Not As Scary As It Seems

Online banking might feel like stepping into the unknown, but with these simple steps, you’re just as safe (if not safer!) as if you were handing your money to the friendly teller at your local branch.

So go ahead, log in, pay those bills, and maybe even splurge on something fun. You’ve earned it!