More than ever, consumers are ditching traditional brick-and-mortar banks for online banks. With an abundance of noteworthy benefits, including high interest rate CDs, low or no banking fees and ultra-convenient features, online banks like Live Oak strive to create a seamless and secure consumer experience.
While it’s not unreasonable to be dubious about the safety of banking online, digital banks utilize robust security measures to ensure that your personal and financial information remains unthreatened. As you search for an online bank that best suits your needs, confirm that the bank employs industry standard safety technology. Online banking is as secure as any traditional bank, assuming these technological protections are in place.
Network and browser encryption, firewalls, anti-virus and anti-malware protection
These sophisticated defenses help mitigate any potential threats and breaches to the system. The goal is to prevent or detect any unauthorized access or malicious software. Currently, the standard level of encryption for banks has been identified as 256-bit and an online bank’s website should deny access to a browser that doesn’t adhere to its security standards. Banks are constantly updating this technology to stay ahead of evolving viruses and threats.
This safety protocol goes beyond a simple username and password with an additional factor to verify our identity when banking online. When logging in to your account, you’ll have to provide several pieces of information, like the answer to an obscure question (“What is your maternal grandmother’s maiden name?”) or entering a security code that was sent to your phone. Multi-factor authentication can also use biometric information like fingerprints or face authentication to verify your identity.
Like any traditional bank, online banks should have FDIC insurance. The Federal Deposit Insurance Corporation is federal insurance that pays up to $250,000 on deposits in the event that your bank should fail. When you’re considering opening up an account with a bank online, do your research and make sure that they are an FDIC member.
Much of the security burden falls on the shoulders of the online bank itself, but the protection plan proves most effective when the consumer plays an active role in staying alert of fraudulent activity. Maximize your safety by adhering to these steps.
- Monitor your bank account and credit on a regular basis to spot any unfamiliar charges
- Routinely update your operating system and applications on your computer, tablet and phone
- Install anti-virus and anti-malware software to detect any threats
- Create strong passwords, change them often and store them in a secure password manager tool
- Be wary of any suspicious emails, social media posts, texts or phone calls – this is often how scammers infiltrate your personal and financial information
- Avoid public wi-fi when accessing your banking information
- Never send sensitive personal or financial data via email, as it is not a secure method of communication
- Install a password or biometric barrier on your mobile device in case it’s ever misplaced
- Always immediately report any signs of fraud to your bank. The sooner they know, the faster the issue can be resolved.
If you want access to streamlined technology, high-interest rate CDs, minimal banking fees and around-the-clock convenience, online banking is a fantastic choice. Before you open an online account, we urge you to do your homework and ensure that the bank aligns with your financial needs and adheres to the most sophisticated security standards. Live Oak cares deeply about the preservation of your personal and financial information and we’ll always ensure the highest level of protection when you choose to bank with us.