Tips for Safe Online Banking

Many American consumers are now using the Internet for their everyday banking needs. It’s convenient and fast and with the advent of “paperless” statements, it’s also environmentally friendly.

To keep your financial information secure, it’s important to use common sense and to make good decisions regarding your accounts. This can help you avoid the many scams lurking on the Internet and also costly surprises.

Whether your bank is a traditional bank with numerous physical locations or strictly an online banking institution, it’s important to make sure that the bank is legitimate and that your deposits are federally insured (guaranteed by the U.S. government). Here are some tips to help you keep your personal information and financial accounts safe while using Internet banking.

• Read the “about us” link on the bank’s website. This often includes a short history of the bank as well as its official name and address (headquarters). It should also indicate that all deposits are insured by the FDIC.
• Be alert to fraudulent websites which copy the name and address of a legitimate bank. This is an attempt by scam artists to get the customers to enter their personal information, such as an account number or password, so that they can hack into the account illegally.
• Many banks now have their customers choose a specific sitekey which further protects their accounts. If you don’t see the sitekey or other detailed information which should be there, don’t access your account. Notify your bank of any irregularities.
• Look for the FDIC logo to make sure your funds are insured. If you have a question concerning this, go to the FDIC website and search “Bank Find”. This will provide you with a complete listing of all banks insured by the FDIC.
• Many banks that are not FDIC-insured are chartered overseas. Remember that any funds deposited in an overseas bank may not be insured for loss by the FDIC. Check with your specific bank for more information.
• Some banks use a different name for their traditional and online banking services. This does not mean that they are two separate banks. Your accounts will be covered for the maximum amount allowed for one bank.
• If you have less than $250,000 in all of your accounts combined at an FDIC insured bank, you have no worries. If you have more than this amount, you should contact your bank for more detailed information.

Remember that the Internet is a public network. Not only should you be vigilant in protecting your financial information, but also exercise caution when entering credit card numbers, a Social Security number, or other personal data.

Take advantage of the security features offered by online banks. Encryption is a method of scrambling your private information to prevent unauthorized access to your account. Most browsers will display a small icon on your screen which resembles a “lock” or “key”.

Choose passwords that are personally unique and change them frequently. Never use a birthdate or address as a password. Tightly control to whom you give your password.

Make sure that your Internet virus protection is active and update it regularly.

By following these simple procedures, you can enjoy the convenience of Internet banking while protecting yourself from scam artists and other illegal activity.