Is Online Banking Safe? Pros and Cons of Internet Banking

One of the biggest advantages of Internet is that it considerably simplifies many routine operations, making it possible to access a variety of banking services online.
Rather than touring around the bank from one counter to another and filling in various forms, with online banking, you can do all that within minutes simply by sitting in front of your PC and in the comfort of your home.

In our strenuous daily ground, online banking has irrefutable advantages such as:

• Convenience: Unlike traditional banking, online banking websites never close, they are available 24/7 and are just one-click away.
• Ubiquity: If you are outside the country and you happen to have financial problem, you can log into your online bank and take care of your finances.
• Speed of transaction: Transactions are processed as fast as or even faster than transactions through ATM devices.
• Effectiveness: You can manage all your accounts online and access a wide range of services including some services that are not provided by traditional banking. 

However, there are some serious issues that have to be taken into consideration in order to avoid potential frauds and scams. Banks employ special software and encryption systems or use a direct-modem connection to avoid transmitting transactions over the Internet. Banks have actually increased the level of security to a considerable extent. However, there are good reasons why customers are still concerned about online security: criminal use advanced technologies to steal personal data and get access to online accounts. 

Cons tend to target personal computers rather than banking systems and by means of sophisticated methods, they can access all the financial information stored on personal computers.

To access one’s account, a customer needs a username and a password. And if the computer is not well protected, the password can be easily obtained by third parties, and the customer won’t be able to retain control of the online account. Bankers, therefore, recommend to often change the password as well as to choose a password which is case sensitive, consists of symbols and numbers, and is at least 8 characters long.

Phishing, malicious software, and weak wireless network security are some of the most popular ways hackers use to obtain confidential banking details. Phishing aims to trick users and acquire private information through emails, counterfeit websites, social networking websites, etc.

Using malicious software, hackers re-direct unsuspecting customers to a copycat website which appears like the original website. The malicious program will then capture any keyboard strokes revealing one’s banking details. The cons will drain the account or/ and use it for illegal purposes. If you don’t notice the fraudulent transactions immediately, they may have already impersonated you, taking advantage of your finances and identity.

The majority of people who use online banking are not computer specialists, and they may unintentionally let others access their wireless network and hence, their confidential information.  Ask your internet provider about software and other means to protect your personal computer. Nothing is perfectly safe in the world but following specialists’ advice, we can make the most of the Internet banking services.

Disclaimer: This article is provided for educational and informational purposes only and should not be considered a substitute for professional and/or financial advice. The information found in this article is provided "AS IS", and all warranties, express or implied, are disclaimed by the author.