Senior Living News

About Online Banking

Online banking refers to the use of technology to complete common financial transactions, such as transferring money from a checking account to a savings account or viewing your account balance. Financial institutions have secure websites and mobile applications, making it easy for customers to transmit data from their computers, cell phones and tablets.

Every institution is a little different, but you generally have to follow these steps to access online banking services:

1. Enroll in online banking.
2. Create a username and password.
3. Set up two-factor authentication or another verification method.

Two-factor authentication requires you to provide two pieces of identity data instead of one. For example, once you log in, your bank may send you a one-time code via text message. If you enter that code, you can access your account. If you mistype the code, you won't be able to use online banking services. Two-factor authentication is helpful because it prevents digital thieves from accessing your accounts even if they somehow find your username and password.

Common Security Threats

Although online banking is relatively safe, thieves and scammers are always looking for ways to separate people from their funds. Here are some of the most common security threats:

• Ransomware: Ransomware is the use of software to access a computer system without authorization. Bad actors use ransomware to encrypt data, rendering it unusable. Then they offer to remove the malware in exchange for a ransom. Cybercriminals often use phishing attacks to gain access to your information. Phishing involves sending malicious links or files.
  
  
• Social engineering: Social engineering is an attempt to access your private information. The "engineer" gathers information about you, attempts to gain your trust and then uses that trust to convince you to share passwords, account numbers and other confidential data. If you give up your data, a social engineer can use it to access your bank accounts or open credit cards in your name.
• Spoofing attacks: Spoofing is when a criminal pretends to be someone else. For example, a thief may contact you via telephone and pretend to be an employee with your bank's security department. They may ask you to verify your Social Security number, account number or debit card PIN. Instead of using the information to make your accounts safer, they use it to steal your money.

Online Banking Safety Tips

Although online banking isn't completely without risk, there are many steps you can take to protect your assets. Follow these tips to prevent thieves from stealing your identity or accessing your bank accounts without authorization.

1. Never Share Your Password

Once you create a password, keep it to yourself. If you give someone your password, your bank may hold you liable if a bad actor uses it to clean out your accounts.

2. Change Your Password Regularly

There's always a chance that online thieves will gain access to your username and password somehow. Changing your password regularly makes it more difficult for them to access your accounts. If you have trouble remembering your passwords, use a digital password manager. Don't write them down, or else anyone who has access to your belongings might see them.

3. Use Different Passwords for Each Website

Using the same password for every website makes it easier for thieves to access your online accounts. For example, if a scammer manages to guess your email password, they can use the same password to log in to your bank account.

4. Avoid Sharing Devices

If one of your fellow assisted living residents offers to let you use their computer, cell phone or tablet, don't use the device to access online banking services. They may be the most honest person in the world, but there's no guarantee a scammer hasn't already compromised their device. For example, your friend's computer may have a keystroke logger on it, allowing scammers to see every character you type. Keystroke loggers make it easy for thieves to access your online banking credentials.

5. Sign Up for Security Alerts

Once a thief has access to your bank account, they can do a lot of damage in a short amount of time. One way to limit your losses is to sign up for security alerts. Banks and credit unions send these alerts when a transaction meets certain criteria. For example, you can ask your bank to alert you any time someone spends more than $50 on your debit card. Alerts don't prevent fraud, but they make it easier to identify.

6. Avoid Public Wi-Fi

Many cities have public Wi-Fi networks, making it easier to get online. It's also common to use the Wi-Fi at coffee shops, restaurants and other businesses. Public Wi-Fi is fine for checking the weather or looking up the local news, but you should avoid logging into your bank accounts when you're connected to a public network. If you use public Wi-Fi for online banking, thieves may steal your credentials, allowing them to access your accounts without permission.

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