Digital banking security: what most banks are doing wrong

Managing funds is simple with digital banking (online and mobile). Customers may now transfer money, deposit checks, and pay bills online thanks to digital banking technologies. While trustworthy financial companies adopt a variety of security measures, most banks are operating improperly.

In this article, SMARTOSC Fintech will show you some mistakes and how to improve digital banking security. 

Disable Two-Factor Authentication

When connecting the online or mobile banking account, two-factor, or multifactor authentication, can offer an extra degree of security verification. Customers must first input the login information and then successfully complete a second digital banking security check.

For instance, banks could be asked to input a unique number, utilize biometric verification, identify an image, or have an automated phone call to confirm their this account. Even if a hacker or identity thief knows their online or mobile banking password,  makes it impossible for them to open their account.

Use Public Wi-Fi

When they need to stay connected while traveling, public Wi-Fi is practical, but they can’t rely on it to be safe. In the opinion of consumer cybersecurity firm NortonLifeLock Inc., some of the most important security concerns provided by public Wi-Fi are listed below: 

• Man-in-the-middle attacks, wherein cybercriminals can “eavesdrop” on online banking and other activity
• Transmission of data through open networks
• Malicious hotspots
• Malware and spyware

On a public Wi-Fi network, it’s advisable to avoid utilizing online or digital banking security. Here are some guidelines to help banks stay safe if they must use a public Wi-Fi network to access online or mobile banking.

• Disable sharing of public files: Search online for instructions for the operating system.
• Choose only secure websites: Look for “https” in the site’s URL, which causes the browser’s lock icon to appear. Websites that are judged hazardous may be automatically flagged by the firewall on the laptop or mobile device.
• Use a virtual private network(VPN): This develops a personal network that is only accessible to banks. Using a VPN service, banks may set up a VPN on a laptop or mobile device.

Not announced to sign up for banking Alerts

Digital banking security lets you know when certain events happen. Banks are immediately alerted to any activity that may be fraudulent or questionable. For the following, email or text notifications are frequently available:

• High or low balances
• Brand-new debit and credit transactions
• New external accounts that are tied
• Login attempts that failed
• New passwords
• Updates to personal information

Not warning about be Wary of Phishing Scams

One of the most popular ways identity thieves get personal and financial information is through phishing. Banks will typically be tricked into providing digital banking security in this type of fraud.

Phishing scams can take many different forms, but email or SMS fraud are the most common kinds. For instance, banks could receive an email claiming to be from the bank informing customers that they need to check in and update their information.

Convenience and control over the financial life are provided through online banking. By taking preventative measures and safeguarding digital banking security, banks may reduce the dangers. By doing this, the likelihood that the information may get into the wrong hands is reduced.

Consider SmartOSC Fintech as a partner in software development. To obtain a thorough consultation, get in touch with us. You will learn about new developments from SmartOSC Fintech!