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.