Are online banks safe? 6 security tips for banking online

With cyberattacks on the rise, concerns about the safety of online banking are top of mind. In fact, millennials now list data security as a top reason for switching banks.

Are online banks safe? As the executive director of enterprise fraud, security and investigations here at Ally, I can shed some light on the topic. Online banks take numerous precautions every day to help you stay safe. Plus, there are steps you can take to help bolster your online safety. Read on to learn more about how we work to keep our customers safe, as well as tips on how to keep your financial identity secure.

We’ve all read about hackers and data breaches in the news. These highly publicized cyberattacks may have you concerned about the safety and security of online banking. It’s true that hackers attack banks, but it’s a myth that online banking isn’t as safe as traditional methods of banking.

How could both things be true? This new reality of cybercrime has required many banks to implement the latest in advanced technology to combat fraud and scammers on a whole new level — meaning banking online doesn’t necessarily increase your financial risk.

Since online banks are primarily virtually based, they offer cutting-edge technologies like automatic fraud detection, AI-driven security and digital encryption that enhance their safety.
Your participation is also key in avoiding financial fraud. Being vigilant and street-smart about how you communicate with your bank and protect your personal information can have a great impact on reducing risk during your digital banking experience.

Online banking is generally very safe, but you can further protect yourself — and your finances — with these cybersecurity best practices:

Hackers exploit the vulnerabilities of public Wi-Fi. If you’re on a shared network (like at a coffee shop, library or gym), your information is in more jeopardy than using your home network. That’s because most of these Wi-Fi networks lack necessary security measures, have poor router configurations and typically have weak passwords.

It’s best to avoid online banking or conducting any other activity that involves sensitive data over public Wi-Fi. If you’re out and about, use your cellular network instead to access your online banking account. It’s not fail-safe, but it’s much more secure.

In addition to checking your network, make sure you’re accessing your banking accounts through a secure browser. If it feels off, trust your gut and wait to log in to your financial accounts.
 
Cybersecurity is an essential element of any modern financial institution. Governmental agencies like the Federal Deposit Insurance Corporation (FDIC)  have available resources to help you research your potential bank so you can better understand its security measures.

The temptation to repeat passwords or keep them simple is there, but don’t get complacent when the security of your financial information is on the line. Create complex, unique passwords to provide another layer of protection for your funds. And always secure your device and applications with a complex key code.

Read more: How to create strong and secure passwords 

If it’s not already there by default, elect for additional authentication. Most online banks like Ally Bank have two-step or two-factor authentication built into their security solutions, but it’s still smart to enable multi-factor verification in other apps where this feature is optional. 

And be sure to keep your authentication codes secure. Consider opting for push notifications in your apps when you can, as this is the most secure option. Otherwise, SMS (text) provides better security than email for most people. 

Learn more about multi-factor authentication

Bank accounts are a common target for cybercriminals. Whether it’s via email or phone, many customers across the industry are victimized every day by fraudsters pretending to be associated with a bank. Some can even spoof the bank’s phone number, so it looks like you’re getting a legitimate call. It’s a scary thought, but don’t panic, there are ways to protect yourself. And remember, if you see something, say something. 

Read more: Suspect a cyber crime? Check out these resources

Most banks, including Ally Bank , allow you to set up suspicious activity alerts online or through their mobile app. In the unlikely event a fraudster gains access to your online accounts, you will receive an alert via email or text informing you about any questionable transactions, including large withdrawals, account closures and fishy login attempts.

Keeping your accounts and personal information secure is a top priority for Ally Bank — especially for those of us on the fraud and security teams. Our approach protects you with a layered strategy that is constantly updated to protect customers from the latest threats.

At Ally Bank, we guarantee that you will not be liable for any unauthorized online or mobile banking transaction as long as you report it to us within 60 days from when your statement is made available. Check out our online bank account options .