During one of the major cyberattacks of early 2023, a group of hackers leaked bank data belonging to more than 4 million consumers. When reading these headlines, our hearts sink, and we ask ourselves — was my bank the one affected?
Stories like this are one of the many reasons why millions of people worldwide have second thoughts about online banking.
Is it safe to access your bank account online today? Let’s take a deep dive and find out.
Is Online Banking Safe in 2023?
The answer is yes, as long as you take the right precautions. That said, keeping up with new threats is already challenging, let alone knowing exactly how to avoid them.
In this context, it’s important to understand the difference between online banking and mobile banking:
- Online banking refers to using your bank’s website and desktop application to manage your account.
- Mobile banking is the act of using your bank’s app or mobile website to access your account and perform financial transactions.
So, when we discuss “online banking,” it’s strictly on desktop devices, while “mobile banking” encompasses smartphone and tablet apps and websites.
What Are Some of the Risks of Online Banking?
Online banking is extremely popular, but it’s not inherently safe. After all, it was created to act as a network that allows for easy sharing of information.
This is the reason why banks and financial institutions invest a huge amount of money into multiple layers of security.
Here are some of the risks of online banking:
- Unverified transactions: you don’t have a bank teller verifying your transactions;
- Human error: it’s possible to send funds to the wrong person or business;
- Unauthorized access: cybercriminals may gain access to your account;
- Phishing attack risk: your account can get hacked, or you may fall for a phishing attack;
- Identity theft: identity thieves may use social engineering to gain access to your account.
What Are Two Reasons to Not Use Online Banking?
Online banking is practical and widely available through most banks. That said, this may not always be the best alternative.
Here are two big reasons you may choose to avoid online banks.
#1. The Web Browser is an Access Point
When most people access their bank through a laptop, they use a web browser. It’s not common for banks to have desktop programs or applications.
The problem with this is that web browsers can represent access points for advanced hackers. Therefore, it’s best to stick to mobile apps where the bank’s system links directly to your device, rather than a browser.
#2. It’s Easier to Download Malware on Desktops
Have you ever downloaded malware accidentally? Even if you’ve never realized it, the answer is probably yes.
The reason for this is that it’s easier to download content and programs that have malware on computers. Not only this, but you always have your phone with you, so there’s less of a chance someone will gain physical access to your device.
Can Hackers Get Into Your Online Banking?
Hackers use a wide range of techniques to gain access to protected systems, like your bank’s security network.
Unfortunately, techniques like social engineering allow these criminals to gain access to countless accounts every year. So, you should keep safety in mind at all times and avoid suspicious interactions at all times.
You can increase security levels across the board by connecting through an encrypted connection. Simply find a reliable virtual private network, pay for the VPN download, and connect using the closest available node.
Is Online Banking Safer Than Mobile Banking?
While they usually feature similar safety technology, mobile banking is often regarded as safer than online transactions.
The reason for this is that mobile devices connect directly through the bank’s app, which eliminates third-party access points.
Newer mobile devices bring default antivirus protection, and some wireless network providers even offer additional security layers for smartphones, making them safer than desktop devices.
Notable Attacks in the Recent Years
There are countless cyberattacks on financial institutions every year. Only a handful ever make the public eye, and fewer yet reach the global stage.
Nevertheless, these threats continue to materialize. At the start of 2023, US authorities brought charges against a man that hacked the account of and stole more than $950,000 from customers in New Jersey, USA.
A pensioner in New Zealand was hacked by cybercriminals and lost his savings which added up to more than $130,000. The worst part is that these attacks can also happen at a mass level, like one of London’s latest crimes, which resulted in the hacking of more than 2 million bank accounts.
To Wrap Up
It’s common to access your funds digitally in this day and age. Yet, you need to be careful and put yourself in a safe situation and minimize the chances of being hacked.
As long as you opt for safer methods like mobile devices and encrypt your connection, you’ll be able to access your account safely over the internet.