Whether you choose mobile banking or online banking, you can be confident that your bank has invested in the security of these services.
The digital era is well and truly an integral part of our lives, and it seems everything we do is connected to our smartphones or computers. Unfortunately, this technology is all about convenience, and when it comes to banking, almost everyone under the age of 50 is accessing their bank accounts digitally nowadays. But how safe are they both? And is mobile banking safer to use than online banking?
Safety and security are always a concern as it seems hackers are always lurking, just waiting for the opportunity to catch the unwary person off guard so they can get into their online accounts and gain access to the funds. This is a severe crime, and it is estimated that banks and their banking customers in the UK lost £159.7 million in 2020, with over 25,000 cases of fraud recorded.
The good news is that banking providers dedicate a considerable amount of time and money to protecting the integrity of their online security. As a result, even though fraud cases are on the rise, it is still quite safe to use mobile banking and online banking services. Here’s why.
We use our smartphones for communication, entertainment, business, and, yes, banking. By having a mobile banking app on your phone, you are essentially taking your bank account with you anywhere you go. Anywhere in the world, as long as you can connect to Wi-Fi or have an internet connection on your phone, you can access your funds, check your balance, or transfer funds from one account to another. Best of all, you can do this any time of the day or night.
Mobile banking apps are considered safe as these devices tend not to store information, and that includes your banking habits.
Online Banking has High-Security Features
The days of waiting in long queues to pay your bills are gone, thanks to online banking. This service means you can sit in the comfort of your home or office and transfer funds and pay your bills during your coffee break. Most online banking services use high-security features such as firewalls but also make use of other security features.
Security Features for Digital Banking
Connecting to your bank accounts, banking apps, or visiting online stores can now include security features such as:
Two-Factor Authentication
Every time you connect to your mobile banking app or make an online purchase, you may be sent a unique code via SMS. The transaction will not be completed until this code is entered. You can also register with your accounts, and these apps issue a unique code that will unlock your accounts. These codes constantly change, so there is no fear of anyone memorizing your codes and passwords.
Biometrics
Most newer phones are capable of reading things like a finger or thumbprint. This technology can then be incorporated into your mobile banking app, not to be opened without that print. Many online shopping apps will also ask for this finger or thumbprint to confirm a purchase to ensure that no one else goes on an unauthorized shopping spree.
So, is Mobile Banking Safer than Online Banking?
Whether you choose mobile banking or online banking, you can be confident that your bank has invested in the security of these services. However, mobile banking is a little safer when it comes to security, mainly because this type of banking does not store any data. It’s also more convenient as we take our smartphones with us everywhere we go.
Follow your bank’s guidelines regarding mobile and online banking, and your funds should always be safe.
Banking apps can be safer than using an online banking portal due to biometric-enabled login options for your phone and the app itself. Your face, your fingerprint and your phone are a lot harder to hack than your username and password.
Hackers exploit weak passwords and vulnerabilities of public Wi-Fi to infect devices with malware. However, most mobile banking attacks happen through social engineering – when users are manipulated to give up their usernames and passwords to hackers, scammers, and other cybercriminals.
Most banking apps offer a bevy of features meant to protect your sensitive information and identity that traditional banking websites might not. Some of these cybersecurity measures include: Encryption: Most mobile banking apps encrypt, aka disguise, sensitive data like login information and bank statements.
Just like being able to make bigger payments, online banking tends to offer more facilities to manage your finances. From checking your statements to managing your direct debits, online banking allows you to conduct more activities.
Once they gain control of the phone number, they can intercept SMS messages containing one-time passwords (OTPs) used for bank account verification. This can potentially enable unauthorized access to accounts if the bank relies solely on SMS-based 2FA (two-factor authentication).
You don't know who has access to the network traffic and whether they can view the data you send. For better online banking security, Marchini advises using your cellular network. A pro tip: Skip the mobile browser and use your financial institution's official app instead.
Are there disadvantages of online banking? Online banking does have some potential disadvantages. These include a lack of face-to-face customer support, cash deposit services and a risk of technology failures or security breaches.
Mobile banking is considered riskier than online banking because of the following facts: Mobile devices are more likely to have malware loaded on them. (Malware specifically targeting mobile devices has become a very real and prominent threat). Mobile devices are more likely to be lost or stolen.
However, online banks can be just as safe as traditional ones. Before opening an account with any bank, ensure the bank is FDIC insured, check what security measures they use, and enact security measures to keep your information safe. FDIC.
Key takeaways. Mobile banking apps* are an easy way to manage your money while on the go. Because of so many tech advances, mobile banking is completely safe and secure. You can skip the trip to the branch and perform easy transactions yourself like depositing checks, monitoring your balances or transferring money.
Lack of trust is the main reason why many consumers do not make online transactions (Maduku, 2014) . According to Meyer (1995) trust, an important element in business transactions is actually built on the basis of ability, benevolence, and integrity. ... ...
The survey found that three-quarters of mobile banking app users (74%) have concerns about mobile banking. The two most pressing concerns are accounts getting hacked (46%) and someone accessing their bank account if their phone is lost or stolen (38%).
According to the 2021 State of Mobile Finance App Security report, 77% of mobile banking apps have at least one security vulnerability that could lead to your personal data being leaked [*]. If hackers gain access to your banking information, this puts you at risk of not only financial fraud — but also identity theft.
Change in login credentials: If you are suddenly unable to log in to your bank account using your usual username and password, or if you receive notifications that your login credentials have been changed without your knowledge, this could be a sign that your account has been hacked.
Take a close look at your statement, any new payees created and review your direct debits. Review security settings and information - many online bank accounts provide a list of latest activity on the account as well as a list of recent logins and connected devices.
Introduction: My name is Gregorio Kreiger, I am a tender, brainy, enthusiastic, combative, agreeable, gentle, gentle person who loves writing and wants to share my knowledge and understanding with you.
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