No one can blame you for being cautious and distrustful. After all, it’s your money we’re talking about. We’ve heard rumors and stories on TV about electronic thieves stealing important information like credit card numbers. The truth is that online banking is just as secure as your average person-to-person banking and is safer than the media often portrays. In fact, online banking can be more secure than traditional banking.
Traditional banking vs. on line bank
You may not have realized it, but in traditional banking you are exposed to various security threats. Your mail containing your bills and bank statements can be intercepted. When you use the ATM, you may be exposed to physical theft or information theft. Bank employees can also access your information. Most importantly, when you pay your bills with a check, your account number, social security number, and even your phone number are often printed on the paper check.
These threats can be avoided, if not completely eliminated, with online banking. Financial transactions take place in the comfort and security of your home or office. Also, because they know online customers are concerned, security is their number one concern. The bank’s computers are also protected by a firewall.
Online banking security measures
Although single password protection is the most common security method in the United States, password authentication alone is not secure enough for the type of information and business with Internet banking. That’s why online banks use a much more complicated system to protect their customers and ultimately themselves. They employ many layers of strategies and measures to ensure their clients the security of their transactions. These strategies vary depending on the bank’s choice. However, there are measures that are commonly used by many online banks. Here are some of them.
The https: Https Protocol is a URI (Uniform Resource Identifier) scheme used to identify a secure HTTP connection. Online banking ports are secure sites, often using this recipe, which is encrypted. If something is encrypted, it means that the data, usually in plain text, is converted into code. Encryption is an excellent process for preventing hackers from accessing personal information on a home or office computer by intercepting “keylogging” or “keystroke logging,” the process of entering passwords into a website.
TAN – Most online banks take customer security to another level with transaction numbers or TANS. This method is the most popular among online banks. These TANs are passwords intended for a single session. Notable banks using this strategy include Deutsche Bank, the National Bank of the Philippines, and the Asian Development Bank (ADB).
Security Tokens: Some banks issue security tokens to customers. These tokens dynamically change the numbers that customers must enter for each transaction. Online banks that use this method include the Bank of Ireland, the Commonwealth Bank of Australia, the National Bank of Dubai, the Bank of Queensland and the Montgomery Bank.
IC Cards (Integrated Circuit Cards): Also known as chip cards or smart cards, IC cards are another method popular with online banks around the world. Chip cards are unique to each customer. They provide a simple means of conducting business transactions in a standard and secure manner with minimal human intervention. Chip cards typically contain encrypted digital certificates along with other important information about the cardholder. In combination with biometrics, chip cards provide a two- or three-factor authentication system. The Industrial and Commercial Bank of China (ICBC), the Hong Kong and Shanghai Banking Corporation (HSBC), the National Bank of Qatar, the Royal Bank of Canada (RBC), the Standard Bank and the Barclays Bank use the card system chipped.
· Digital Certificates: Another method to guarantee the security of online banking is with digital certificates. These virtual certificates allow you to digitally authenticate your transactions by connecting them to a physical device such as a personal computer and mobile phone. Digital certificates are used by many giant banking corporations, such as Barclays, HSBC, China Merchants Bank, Bank of Montreal, Bank of the West, and many others.
Online banks or Internet banks have their security policies and procedures prominently posted on their sites. You can browse through them before choosing which bank to trust. If you have more questions about their methods, send them a message and they will answer you appropriately.
