Online Banking Security: Tips to Protect Your Finances

Posted on: Oct 29, 2024 | 3 mins | Written by: HDFC ERGO Team

Online Banking Security: Tips to Protect Your Finances

Do you remember the last time that you had to visit a bank branch office? The chances are high that most of us carry out almost all of our banking transactions online these days. Unless you want to access some banking functions that aren’t available online or require you to visit the bank for a physical verification. The shift to online banking saves a lot of time for individuals helps banks streamline the process and requires fewer people to visit branches. Despite being used widely, online banking security still remains a grey area and it is always advisable to have cyber insurance to stay protected.

What is online banking?

Online banking or Internet banking in its simplest form allows customers to access their banks and manage various banking needs via a website or app, rather than visiting any branch offices. Customers can carry out a large number of financial transactions right from the comfort of their homes. Banking functions such as transferring funds domestically and internationally, paying utility bills, paying credit card bills, managing different cards, viewing account details, viewing loan details, etc.

The list is quite long and exhaustive. There is a good possibility that you might feel the need to visit your bank’s branch for some banking needs, but the feature might already be available on Internet banking.

Perks of online banking

As most businesses turn digital in some form or the other, it was only a matter of time before banking services also achieved the same. Whether you are a personal customer or a corporate customer, online banking offers a myriad of benefits. The following are some of the most prominent ones.

1. Faster fund transfers

Online banking allows you to transfer funds to any individual with ease. And the best part is that you don’t have to visit the branch or even stick to the bank’s operational hours. You can transfer funds to any beneficiary and they will receive the funds either instantly or within a couple of hours, depending on the mode of payment that you have chosen.

2. Better availability

The biggest perk of online banking is that you can carry out your banking needs at any hour. Online banking allows you to quickly check your bank balance, mini statement, card details, etc. at any time of the day. Most of the banking systems do undergo regular maintenance, but it is usually scheduled during the middle of the night, to reduce its impact.

3. Utility bills

Online banking allows you to quickly pay your internet bills such as phone bills, electricity bills, phone recharge, DTH recharge, etc.

4. Enhanced features

Since banks have access to your financial transactions and data, some of them offer novelty features such as budgeting tools or spending analysers. These can not only help you track your highest spending but also curb them to save money. You can request bank statements for any time period right from your laptop or desktop. You can even request duplicate copies of certain documents that have limited validity, such as NOC.

Disadvantages of online banking

Regardless of the massive number of perks and benefits that online banking brings to the table, there are a few disadvantages as well. Here are a few of them.

1. Online banking can be a bit difficult to get a hang of if they are not tech-savvy.

2. You might still have to visit a bank branch for more complex banking needs or larger transactions.

3. Untimely maintenance can prevent you from accessing the website.

4. The chances of financial fraud and cyber crime are still quite high when you access online banking.

Online banking security

The possibility of cybercrime or financial fraud can be quite daunting if you are someone who is new to online banking. However, banks do take online banking security quite seriously. With the help of tools available and a few vigilant steps from your end, you can ensure that you steer away from such occurrences. Here are a few things that you can do to stay vigilant and enhance online banking security.

Password maintenance

It is crucial that you do not share your internet banking credentials with anyone. None of the banks require you to do so even during calls with their customer support. Ensure to use a complex password that cannot be easily uncovered by a cyber-criminal. At the same time, make it a habit to change your passwords at regular intervals.

Public domain computers

It is highly recommended that you do not use any public domain computers such as the ones in Internet cafes or public libraries to access online banking. Your password is more prone to being stolen on such computers. If you must, ensure that you don’t save any password on the computer and clear cache and browser history on leaving.

Regular account vigilance

Another simple way of improving online banking security is to keep checking your bank account balance at regular periods or after transactions. You can easily identify any unauthorised transactions in such cases.

Authentic bank website

If you use a specific computer, ensure that you bookmark the official bank website. This will ensure that you do not always search for the bank’s website or accidentally click a malicious link. Similarly, avoid clicking on any links provided in emails. Scamsters these days can mask bank emails quite efficiently.

Multifactor authentication

Quite a few banks these days offer multifactor authentication or MFA. MFA adds an additional layer of online banking security, which can lower the chances of online fraud to a large extent. If your bank offers MFA or two-factor authentication, ensure that you enable the same for your account.

Importance of cyber insurance policies

Despite following all precautions, there is still a chance of being a victim of cybercrime or fraudulent activities. For utmost safety, opting for cyber insurance is highly recommended. Cyber insurance policies can safeguard you against unauthorised financial transactions from your account and offer a lot more as well.

The plan can protect you against identity theft, social media liability, network security liability, financial losses during online shopping, and more. By paying a small premium, you can protect all of your online presence and stop worrying about cyber crimes impacting you financially. The plan also offers protection to individuals who sell online. And most importantly, you receive protection against cyber extortion.

Conclusion

Banks and customers rely heavily on online banking activity these days. Understanding what online banking offers combined with its few disadvantages will help you stay on top of things. Taking adequate precautions is one of the ways to safeguard your interests and finances. Apart from staying vigilant, opting for a cyber insurance policy can be sensible and smart in the long run. It will help you make the most of online banking, without having to worry about online banking security.

Disclaimer: The above information is for illustrative purposes only. For more details, please refer to the policy wordings and prospectus before concluding the sales.

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