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.
Mobile Banking Safety & Security
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.
Services: Mobile banking offers basic services like checking balances, transferring funds, and bill payments. Internet banking provides a wider range of services, including loan applications, investment management, and access to detailed financial statements.
You may be at risk of getting fake text messages or scams. In case your mobile phone gets lost or stolen, criminals/fraudsters can easily gain access to your Mobile Banking PIN and other sensitive data.
The 2021 Nokia Threat Intelligence Report indicated that 50% of banking malware is targeted toward Android users, because Androids run on a fully open-source operating system. Cyberattacks triggered by hackers, unexpected glitches, and user mistakes can all undermine an app's security.
As long as you're taking steps to protect your data -- such as avoiding public Wi-Fi and enabling multifactor authentication -- using a banking app to manage your money is safe.
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 or any other activity that exposes your sensitive data should never be done on public Wi-Fi. If a hacker is monitoring the public Wi-Fi or hotspot you are using, they could potentially intercept the data being transferred to and from your phone and use it to access your banking account.
If hackers gain access to your banking information, this puts you at risk of not only financial fraud — but also identity theft. Scammers use stolen personal data on the Dark Web to: Take out loans in your name. Open new credit cards and ruin your credit score.
In the realm of mobile banking app security, one of the top threats that users face is the existence of fake banking apps. These malicious applications imitate legitimate mobile banking apps to trick unsuspecting users into divulging their login credentials and sensitive financial information.
A dedicated Windows machine is a good option that is very resistant to attacks by cyber criminals. By keeping the machine updated with patches and security software and maintaining the discipline of not using it for any other tasks, you are reducing the number of possible attacks significantly.
Companies often release security patches with software updates to stop the latest types of attacks, which is why regularly updating your device and apps is important. You can manually update apps and operating systems on Android and Apple, or turn on automatic updates to help keep yourself safe.
Once the hacker has gained access, they can install a keylogger to monitor activity and view login data for websites and apps — potentially giving them access to bank accounts. They can also use it to commit identity theft, or to sell your personal data to other criminals on the dark web.
Some added advantages to banking on your phone include: Easy access to card manager features like changing your PIN, setting travel notifications and freezing/unfreezing your card.Deposit checks remotely.Send money to people you trust.
Due to the open nature of the Internet, all web-based services such as YAB's Online Banking are inherently subject to risks such as online theft of your User ID/UserName, Password, virus attacks, hacking, unauthorized access and fraudulent transactions.
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.
The lack of overhead gives internet banks advantages over traditional banks, including fewer or lower fees and accounts with higher APYs. Internet banks lack personal relationships, no proprietary ATMs, and more limited services.
Introduction: My name is Eusebia Nader, I am a encouraging, brainy, lively, nice, famous, healthy, clever person who loves writing and wants to share my knowledge and understanding with you.
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