|Ricky Willis - Online banking|
Online has become a household word in only the last 20 years.
This is a genuine but misguided concern. With every step hackers take to break down security, companies move two steps closer to protecting your security.
Of all bank fraud less than 5% is committed using information obtained through electronic means.
Most people who are smart enough to use computers to hack in and obtain information without getting traced or caught would not waste time on getting into one persons' $300,000.00 account.
For that matter someone who had the sophistication to hack past electronic security would just as easily hit the banks main databases to get multiple sets of people’s information, not one person’s online account.
You don’t have to do any online banking yourself to have your information taken from a bank computer database, which is the real target of most hackers.
Banking online can add to your security much more than take away from it. Many banks have a 100% guarantee against fraudulent activity on your accounts accessed through any means anyway.
If yours doesn't, I suggest moving banks.
- Only deal with known reputable companies.
- Make sure that the page you are inputting your card information on has an S after the HTTP, like this: HTTPS://
You can also do a search through a major search engine such as Google, Yahoo, or Bing. See if you find complaints or articles about them.
For the curious: What does HTTPS stand for?
Hypertext Transfer Protocol over a Secure Socket Layer
It doesn’t mean EVERY page on the website has to have the “S” but at least the page that you enter your information on does.
Some of these services are:
- Spending reports that categorize spending;
- Budget tools;
- Bill Pay Services;
- Savings Plans;
- Electronic Statement Delivery;
- Photocopies of Statements,
- Deposits, Checks;
- Personalized ATM/Debit and Credit Cards;
- Access to loans and other bank products.
The main thing to take away from this is that:
Not using online banking does not prevent fraud and using online banking does not increase risk, it reduces it.
When available the bank will pay bills electronically.
When the company accepting the payment doesn’t accept electronic payment most banks will send a cashier check on your behalf.
Your party receiving their money is guaranteed funds and you stay safe by not having your account number on it and pay no postage.
Some banks even take care of third party late fees if it’s not received and many banks waive the stop payment fee if you use Bill Payment service and the item is not received. The main idea here is that you are sending the money to them without releasing your account number instead of having them take the money which opens the possibility for them to take the wrong amount on the wrong date, or take a payment that you didn’t ask them to, or continue to draw payments you keep asking them to cancel.
If they don’t get your account number or card number they have no ability to hit your account at their will. Using Bill Pay keeps your account information out of their hands.
This prevents the statements from being lost in the mail or miss-delivered to your neighbor’s house, or stolen from your mail.
You can access statements, usually, for up to seven years online at most banks. You can even send copies at request to those requesting them when trying to get a house or apartment without touching paper. It makes record keeping safer with quicker access.
~Online Fraud DE-Mystified~
- Someone tricks you into giving up your information.
- Someone steals your information physically and then uses it online.
Do nothing by paper.
- Do not write checks, use the mail, have statements mailed to you, or otherwise conduct your affairs in paper.
The same copy will be yours in less than half of the time and if you need paper records you may print it out yourself so you need no mail person to miss-deliver it. If you intend on keeping paper copies around the house after you printed your statements from online, keep them in a locked secure place. Criminals, during home and office break-ins now search for information even more than for cash, gold or jewelry.
Checks account for most fraud loss and of complaints reporting a dollar loss the highest median losses were found among checks. 75% of companies cited employees as a likely source of hacking attacks (which means that not signing up for online has no preventative effect because the employees already have your information.) Banks in Great Britain have agreed to stop accepting checks as a payment method by 2018 citing security and cost as reasons .
The Insider is a BIG fan of Dave Ramsey:
- Go read/listen/watch Dave Ramsey and he'll teach you how to do it right!
- Listen to The Dave Ramsey Show (HERE)
- Or by his most popular book: (HERE) The Total Money Makeover: Classic Edition: A Proven Plan for Financial Fitness