Security Warning Signs When Shopping Online

Remove the stress from shopping online by following these key shopping safety tips

Young woman shopping on a laptop while holding a credit card It’s an undeniable fact that many people shop online, either for personal shopping or gift giving. Companies like Amazon and Etsy have built modern empires out of their online operations. With each passing year, more and more brick and mortar stores close their doors. With all of these shopping venues shutting down, the variety of online shopping sites has only grown more diverse.

But for every trusted online retailer out there, there is a different website that is certainly not as safe or secure. Online security is always something to be concerned about, and this is even truer when money is involved. Keep an eye out for these warning signs and how to respond to them in an appropriate way.

Warning signs to check for
With the growing number of online shopping websites, there are guaranteed to be some bad eggs in the bunch. Shoppers might find themselves deceived and robbed if they aren’t careful. Even though the venue is online, most reputable online websites have both a physical address and a phone number according to Norton Security’s Mary O. Foley. If a site lacks either of these, then it might be one to avoid.

Pop-up ads are another red flag for shoppers. Not only are they annoying, they might also indicate that a particular site is not the best in terms of online security. Another sign of a scam would be extremely low prices. If the prices on a certain website seem too good to be true, the BBC’s website warns that they probably are. The easiest way to make sure that a website is safe, however, is to use the internet itself. A simple web search might yield the answer as to whether or not a shopping venue is legitimate.

Ways to pay safely
Even with these warning signs in mind, it can still be easy for online shoppers to fall prey to a trap on the internet. As important as preparation leading up to a purchase is, how someone actually goes about shopping and paying online is just as critical, if not more so. It might be tempting to purchase a product while out and about, relying upon a Wi-Fi hotspot for an internet connection. However, Elizabeth Weise of USA Today warns that hackers often monitor public connections, meaning that waiting to shop until you get home is the safer bet.

As is the case for all online activities, you will want to make sure that your passwords are rigorous without being complicated. That way hackers won’t be able to guess your password, but you won’t forget what it is, either. Similar to certain transactions offline, using a credit card is more advisable than using a debit card when it comes to shopping online. Paying with a debit card can lead hackers straight to a banking account, putting your money at greater risk.

After a purchase is made, it is vital to still practice your due diligence when it comes to protecting your cash. Eric Griffith of PC Magazine states that shoppers should not wait until their monthly bank statement arrives to check and see if something is amiss. Instead, they should check their banking accounts online on a consistent basis.

Shopping online can be a very enjoyable activity. With these tips in mind, you can remove a lot of stress from the entire online experience.

Used with Permission. Published by IMN Bank Adviser Includes copyrighted material of IMakeNews, Inc. and its suppliers.

Advertisements

5 Best Money-Sending Apps

picture of person sending funds electronicallySend money easily with these convenient phone apps
In the modern economy, most financial transactions are entirely digital, which makes sharing money between individuals something of a dilemma. Luckily, there are a number of convenient phone apps available that facilitate this process with no physical cash required.

Facebook Messenger
One of the most prolific mediums of communication available is social media. Digital Trends and Quicken point out that Facebook Messenger allows its users to send money by simply asking users to link a debit card. To complete a transaction, the money sender just needs to tap the dollar sign and enter the amount being sent, which turns into a hyperlink that the receiver can click. Payments can take up to five days to process, but the app makes up for that time with its convenience compared to other methods like finding an ATM.

Google Wallet
Recommended by both Digital Trends and Quicken, Google Wallet acts, as the name implies, as a virtual wallet. Money can be sent and received within the United States via an email or a phone number. Once the money is in the Google Wallet account, it can then be used at retail stores that accept tap-to-pay or debit Mastercards.

PayPal
As one of the oldest names in the digital financial industry, PayPal offers the ability to transfer funds to other users. PayPal is one of the few apps to allow transfer of funds to people outside of the United States. While PayPal tends to take between five and 10 days to process, it also offers the ability to pay for purchases at a variety of establishments.

Square Cash
Gizmodo recommends Square Cash as one of the easiest-to-use money-transfer apps available. Square Cash doesn’t require the recipient have an account; instead, users just need an email address. It is free to use for most individuals, though businesses and those using a credit card must pay a fee. Standard deposits typically appear the next day; same-day deposits are available with Square Cash, but require a small fee.

Venmo
Venmo is recommended unanimously by Quicken, Digital Trends and Gizmodo, with Digital Trends even calling it the best money-sending app on the market. This app is intended for easy money transfers to and from friends and family, and although it requires that both parties have the app, debit transactions are free. Venmo is structured like a social media network for payments (including the ability to like and comment on specific payments) and is becoming well-known enough to have created the phrase, “Venmo me.”

Using these apps, sending money digitally has become easier and more accessible than ever before.

Used with Permission. Published by IMN Bank Adviser Includes copyrighted material of IMakeNews, Inc. and its suppliers.

Should You Save Your Credit Card Information Online?

How to protect your information when shopping on the internet
Woman using a tablet to make an online purchase using a credit card
It seems all too common these days to hear about major breaches at retailers that leave consumers’ credit card numbers and personal information vulnerable to identity thieves. In perilous times, it feels tenuous enough using a credit card to complete purchases in-store, let alone online. If you shop online frequently, the question of whether it is safe to store credit card information online for the purposes of faster and easier check outs is a valid one that can be approached a number of ways.

Assume the worst
In an April 2014 article on NerdWallet entitled “Should I Save My Credit Card Payment Information on Retail Websites?”, website contributor Lindsay Konsko states the obvious in a blunt fashion: “[Y]ou must understand that anything you put on the internet should be considered completely unsafe and available to the public. No matter how much a website boasts about its security, it may still be vulnerable.”

You can save your credit card information with retailers if you shop there frequently enough that it might warrant it, but you should only do so fully understanding the level of risk involved. Some retail outlets like Amazon.com provide two-step authentication to protect your information and help you spot when someone might be attempting to access your account, but even then, it is not entirely protected from the possibility of data breaches.

Consider the alternatives
CNET Senior Editor Lexy Savvides recommends protecting yourself from the possibility of having your credit card information stolen from an online retailer by considering instead the option of shopping online with a prepaid card. According to Savvides, prepaid credit cards are advantageous in that they can help curb impulse shopping and can easily be reloaded (for a small fee), but arguably the biggest advantage that they provide online shoppers is that “even if the card’s details are compromised somewhere along the chain, there is a limit to the amount of money that can be taken.”

Be proactive
The reality, as unfortunate as it may be, is that there can be no guarantee of the complete safety of your credit card information. Having said that, it is within your power to determine how much risk you face. Savvides notes that you should only enter credit card information when checking out online if the website has an https connection and “a padlock or another digital security certificate to ensure that you are only entering your details on a site that encrypts the transaction end-to-end.”

Savvides also recommends being attentive when it comes to monitoring transactions. Konsko notes that most credit card companies offer fraud protection and low or zero liability for fraudulent charges, but it is not always guaranteed that a credit card company will notify you when a charge goes through even if it is unusual. As such, frequent or even daily monitoring of your balances and transactions can be key to shutting down identity thieves before they have an opportunity to do any major damage.

Savvides notes that credit card companies like MasterCard and Visa offer secondary levels of security to protect your credit card information by requiring a private code or password before completing a purchase. Before deciding whether you feel comfortable storing your credit card information with a retailer online, make sure that your credit provider will protect you in the event of having that information compromised. When it comes to credit, it is always better to be safe than sorry.

Used with Permission. Published by IMN Bank Adviser Includes copyrighted material of IMakeNews, Inc. and its suppliers.

Mobile Wallets: Moving Shopping Into the Future

A more secure and convenient way to make payments
These days, most transactions don’t involve physical money, so why should they involve physical wallets? Thanks to new technologies like Samsung Pay, Android Pay (formerly Google Wallet) and Apple Pay, you can now use your smartphone to securely make transactions without ever having to take out your credit card.

According to the latest survey data from market research firm CMB, only about 15 percent of smartphone users actually utilize these technologies to pay for purchases, but usage nearly doubled from 2013 to 2015 and will likely continue to rise over the next few years as the benefits of mobile wallets are better understood.

If you are not sold on the idea of joining the new trend, here’s why you may want to reconsider:

Ease of use
A mobile wallet is an app that can be installed on a smartphone, or may even come pre-installed. Investopedia explains how they work: “Once the app is installed and the user inputs his payment information, the wallet stores this information by linking a personal identification format like a number or key, QR code or an image of the owner to each card that is stored.”

You may also have to contact your financial institution to allow the mobile wallet app to use the payment card. Once everything is set up, the mobile app uses a radio-based technology called Near-Field Communication (NFC) that communicates with the merchant’s point-of-service terminal. In other words, you only need to wave or hold your device over a store’s reader to make a payment.

Security
Because mobile wallets use encrypted payment codes and never actually transmit your account number, they are much safer to use than credit cards. In addition, paying with a mobile wallet requires your fingerprint or personal identification number, so even if a thief managed to get their hands on your smartphone, they would have a much harder time spending your money than if they had stolen your credit card.

“Even if a thief bypassed all the security, the risk to you is low,” Jeff Blyskal writes in an October 2016 article for Consumer Reports. “Mobile wallets usually require an underlying credit or debit card to fund transactions, and those cards limit your liability for erroneous or fraudulent charges to little or nothing.”

Convenience and incentives
Mobile wallets can be used for more than just emulating credit and debit cards. “In addition to payment cards, the mobile wallet can also be used as a storage device for driver’s license, Social Security Number, health information cards, loyalty cards, hotel key cards and bus or train tickets,” Investopedia explains.

Thanks to mobile wallets, you can carry hundreds of rewards cards virtually, making it easier to keep track of the ones you own and to remember to use them. You can even use mobile wallets to make online payments, removing the need to tediously enter dozens of digits for each transaction.

You can also save money with various reward programs. For example, Android Pay offers rewards for using the app at selected partners, while Samsung Pay offers a tiered rewards system based on how many monthly purchases you make with it.

Widespread adoption
So far, the main obstacles faced by mobile wallets are the different payment methods. While almost all modern smartphones will support Samsung Pay, Android Pay, Apple Pay or a combination of these, all three of these apps may not necessarily work at all retailers.

“Samsung Pay can be used at more than 10 million U.S. stores, Apple Pay at more than 3 million stores, and Android Pay at more than 1 million stores,” Blyskal says. “The numbers will grow as retailers upgrade their payment card readers.”

Being able to use Samsung Pay at more than 10 million stores easily makes it the most attractive of all the mobile wallets, but you have to own a Samsung smartphone to use it. The upside is that it works everywhere: according to Ethan Wolff-Mann in an October 2015 article for the Time’s Money, “[Samsung Pay] works everywhere, since it can mimic a magnetic strip if NFC technology is unavailable; retailers don’t get your credit card info.”

This doesn’t mean that Samsung will continue to be the best option for smartphone owners interested in mobile wallets, as both Google and Apple are strongly invested in using this technology to sell smartphones and will continue to implement rewards for using them. Furthermore, using a mobile wallet speeds up transaction times, which gives retailers extra incentive to adopt NFC-capable card readers.

For the time being, mobile wallet adoption across retailers may still not be good enough to leave your credit card at home. In the future, however, it’s very likely you’ll never need to go out shopping with more than just your smartphone.

Used with Permission. Published by IMN Bank Adviser Includes copyrighted material of IMakeNews, Inc. and its suppliers.

Safe Practices for Mobile Banking

How to bank safely on your smartphone
Technology has made the everyday hassles of life easier, whether it be ordering groceries online and having them delivered to your doorstep or navigating to a destination you have never visited before.

One of the biggest areas where technology has bred convenience is in terms of banking and budgeting. Mobile banking apps make it easy to check balances, monitor activity and make transfers without ever having to step foot in the lobby of your local bank or credit union. But with public concerns over cyber security and identity theft on the rise, the expediency of mobile banking also inspires questions with regard to safety.

According to Niles Howard, editor at Bankrate.com, a study from Javelin Strategy & Research found that the fear of lackluster security remains the most prevalent concern of potential mobile banking users. But as Howard notes, there is less cause for concern than you might think.

“The good news is that the fear [of a lack of security in mobile banking] is so far worse than the reality, thanks in part to the financial industry’s heavy investment in security technology,” Howard writes, noting that several institutions cover 100 percent of a customer’s mobile fraud losses.

To keep your money extra secure, there are measures that can be taken to reduce your risk of becoming a victim of fraud, starting with ensuring that your phone itself is inaccessible to someone who might try to physically unlock it. Some of the steps that you can take to protect your phone from being opened by an unwanted party include setting your phone to automatically lock or time out after going unused for a period of time, setting up touch identification where applicable and maintaining a strong unlock password or PIN.

Mobile banking security is also dependent on the security of your online account. Nerdwallet.com contributor Margarette Burnette recommends that your online banking password uses “combinations that are difficult to guess, such as a mix of upper- and lowercase letters, numbers and symbols,” and that you make it a point to change your password in regular intervals. If your mobile banking app provides fingerprint verification, this would also serve the purpose of concealing your password whenever using mobile banking in front of others.

With regards to using mobile banking on the go, financial writer for NerdWallet Steve Nicastro advises against using public Wi-Fi networks to access an app. Nicastro cites the Federal Trade Commission, which notes that mobile apps are less secure because they lack visible indicators of connection privacy. Greg Kraynak, chief executive of Cellhire, indicates that cyber criminals could set up free Wi-Fi hotspots for the express purpose of stealing your information. As such, if you are banking on the go, avoid using any public internet connections or instead use your banking institution’s mobile website.

As long as you take the appropriate level of precaution, mobile banking is a great convenience that can help make your life easier. Be vigilant with your money and smart about the ways that you protect your identity, and you should have little to fear.

Used with Permission. Published by IMN Bank Adviser Includes copyrighted material of IMakeNews, Inc. and its suppliers.

Tips for Making Safe Credit Card Purchases Online

In today’s digital age, you need to be especially careful when making online purchases

With online shopping becoming the norm, people have also become more susceptible to identity theft. It’s imperative that you be careful and mindful of how you shop online.

A November 2016 article in The Balance by contributor LaToya Irby outlines seven tips for safe online shopping:

Conduct your online shopping only on websites you trust
It may sound obvious, but using your credit card to make online purchases only on those websites you know and trust could save you from becoming a victim of fraud. Never click on links provided via email; instead, type the entire URL of the website into your browser to open the site.

Never shop from a public place
Public computers are susceptible to hacker technology, such as software that captures your keystrokes and retains your personal and credit card information. Additionally, public Wi-Fi is unsecured and, as such, could redirect your device to a fake internet connection that an identity thief can monitor and use to intercept your personal information.

Keep your devices protected from viruses
Always stay up to date with virus and spyware protection software, and make sure you are using antivirus software that is reputable, not the type for which you receive an ad via email or in a pop-up window.

Check with the BBB first
The Better Business Bureau marks websites with poor customer service records, so make sure to check out the credibility of the site in question using the BBB before making a purchase.

Use credit cards, not debit cards
Credit cards have better protection services against fraud than debit cards, so you’re liable for fewer fraudulent charges if they occur. Additionally, you could lose access to your account and your funds while the financial institution sorts out a debit card that has been compromised, whereas with a credit card the only access that’s affected is that line of credit.

Make sure the website you use is secured
Always look for the green lock symbol at the start of your URL browser, and make sure you type in the website using “https” to ensure the site is secured to encrypt your information when making online purchases.

Keep track of your purchases with receipts
Just as with in-store purchases, printing a copy of the receipt of your online transaction will help you track your credit card activity. Use the printed copy to compare against your monthly credit card statement and watch for fraud.

In a November 2016 article in the Better Business Bureau by APR, CFEE Janet C. Hart recommends checking both your credit card activity and your bank account activity once a week, rather than waiting for the monthly statement. This ensures you catch fraudulent activity shortly after it’s occurred instead of finding out weeks later.

Hart also advises that we be wary of phishing scams—emails seemingly from a business claiming an error with your order or your account and asking you to confirm personal and identifying information. Legitimate businesses do not send these types of emails.

“Beware of ‘GREAT’ deals — if you find a website offering deals that seem too good to be true, they probably are. You may get a knock-off product, a product that is not the brand you ordered, or you may get nothing at all,” adds Hart.

Lastly, Hart recommends always checking the website’s privacy policy before making purchases online, so you know exactly how your personal information will be used.

Used with Permission. Published by IMN Bank Adviser Includes copyrighted material of IMakeNews, Inc. and its suppliers.

How online banking can keep you from overdrawing your account

Seeing red? Prevent a negative balance in your account by following these simple tips, many of which can be achieved with a simple enrollment in online banking.

TRADITIONAL BANKING SOLUTIONS
Opt out of overdraft coverage.
Debit card transactions cause more overdrafts than any other transaction type, according to a 2014 report from the Consumer Financial Protection Bureau (CFPB) recently published by NerdWallet staff writer Spencer Tierney. Luckily, since 2010, consumers have had the option of opting out of overdraft coverage, a service that declines debit card or ATM transactions when your account contains insufficient funds. The alternative would be incurring an overdraft fee from your financial institution for the insufficient funds, as well as a returned item fee from the entity receiving your money. Opting out eliminates the additional fee or stops you from making a purchase that would send your account into the red.

Maintain a buffer balance.
Most overdrafts occur due to relatively small sums, often $20 or less. That means you can avoid a lot of overdraft fees by keeping a cushion in your checking account at all times just in case a deposit is delayed or you make a mistake in your register,” says Marcie Geffner of Bankrate.com. U.S. News contributor Simon Zhen recommends a buffer amount equal to the sum of one month’s recurring expenses (rent, utilities, fuel and groceries).

Link an account or line of credit.
Your financial institution may offer the option of linking a savings account, credit card or specified line of credit to your account that would cover an overdraft if needed. “When a transaction causes a negative balance, a [financial institution] will automatically perform an overdraft protection transfer from the linked account to cover the overdrawn amount,” Zhen explains. “Note that [financial institutions] may charge an overdraft protection transfer fee. With a line of credit, you’re simply borrowing from this credit line and you’ll be subject to interest charges, just like any other loan.”

ONLINE BANKING SOLUTIONS
Use online bill pay rather than auto pay.

Automatic bill pay is a great service as far as convenience goes, but it can wreak havoc on maintaining a budget. Instead of setting up auto pay with billers, utilize online bill pay through your financial institution’s online banking. Making the payments manually gives you control over the transaction, so you won’t have to worry about any forgotten expenses pulling your account balance below zero. It’s also a better option than mailing in a physical check, which could take weeks to clear.

Dutifully monitor spending.
Another benefit of online banking is the mobile aspect. Today you can check your account balance anywhere, anytime—sometimes without even manually signing in. Taking full advantage of that increased potential for vigilance can save you big.

Create account alerts.
If you find manually checking your balance to be a bit tedious, automate the process instead. Sign up for alerts through your online banking, which will notify you via email or text message anytime a certain event occurs, such as unusual account activity, an overdraft or falling below a certain amount. Some platforms will even allow you to do this in real time. “When you’re alerted to an overdraft, you may be able to deposit money in time to avoid the overdraft fees,” Zhen says.

By simply being observant and taking advantage of the tools and resources provided to you by your financial institution, you should be able to circumvent overdrafts and their corresponding fees.

Used with Permission. Published by IMN Bank Adviser Includes copyrighted material of IMakeNews, Inc. and its suppliers.