YOUR COMPLETE GUIDE TO SECURE MOBILE BANKING
With more people using electronic banking as a holdover from pandemic times, it's important for consumers to be aware of its vulnerabilities and how to protect themselves from scams. Here's what you need to know about the possible risks of mobile banking and how to stay safe.
What are the risks of mobile banking?
Banking through your mobile device is quick, convenient and efficient. There's no longer a need to stop by the credit union on your way home from work to deposit checks, make a transfer or review your recent account history. Most banks and credit unions now allow you to do all that and more at any time, and from anywhere, using your phone and a mobile banking app.
Unfortunately, though, like all transactions that take place over the internet, mobile banking has some inherent risks. First, hackers can break into a phone and an account to steal money and information. Also, phishing scams that target people over the phone can trick them into sharing login information with scammers who may then hack into the account. Finally, bogus emails and messages appearing to be from your credit union can lead you to unknowingly install malware on your device.
Mobile banking scams can be difficult to spot and are frighteningly prevalent. In fact, according to a report by data science company Feedzai, the first quarter of 2021 saw a 159% increase in banking scams over the last quarter of 2020. This is likely due to the fact that the volume of banking transactions are returning to their pre-pandemic norm and many of them are happening online.
How to bank safely online:
Instances of online fraud may be mounting, but that doesn't mean you need to give up the convenience of mobile banking. Follow these protocols for online safety and bank with high confidence:
- Always choose multi-factor authentication. Most money apps will require this, but if your chosen app allows you to make this choice, be sure to say yes to multi-factor authentication.
- Never share your password or save it to your device. All your passwords should be confidential, but the password you choose for an online banking app must be top secret. Don't share your password with anyone. Follow suggested guidelines for choosing a strong password, including alternating between uppercase letters, lowercase letters, numbers and symbols; and choosing a unique password you don't use elsewhere. Also, choose a security question that cannot be answered by searching through the personal information you post on your social media platforms.
- Brush up on your knowledge of scams. It's important to keep yourself updated on the latest banking scams and to know how to recognize a scam if you're targeted. Never answer a text or email that asks for your account details, even if it appears to be from your credit union. Finally, always be wary of unsolicited phone calls and banking alerts.
- Protect your phone. With the wealth of sensitive information it holds, a smartphone should be protected just like a desktop and laptop computer. Consider installing an antivirus app on your phone as well as a location-tracking app so you can find your phone if it gets lost. Be sure to lock your phone after using it, log out of the mobile banking app when you are done and always keep your phone in a safe place.
Mobile banking scams are on the rise, but by simply following the tips shared above, you can use your phone to bank with confidence, knowing your money and your information are safe.
In several weeks, NorState FCU will be transitioning to a new digital banking platform that will allow for more personalized and modern features that will help keep your finances on track. This new platform will be more user-friendly and will give you more control over your own accounts. Look out for more information on this coming in the following weeks!
