How to Protect Yourself when Banking Online

Paying bills, shopping and banking online are convenient time and money saving ways to handle business. A few precautions can go a long way in protecting your identity and your finances when banking online.

Set up computer barricades, choose a legitimate bank, keep passwords secret, check statements regularly and beware scam emails. These steps will help ensure happy surfing, shopping and banking.

Banking online tip 1: Barricades

Before even going online, install computer security. If your operating system came with a firewall, make sure it's activated. If not, install and activate a firewall. Keep it activated at all times. Install anti-virus and anti-spy software. There are several free and paid versions available. Whatever you choose, use the software regularly and keep it updated. Most software programs allow you to set run times as well as making updating an automatic process.

Banking online tip 2: Legitimate Banks

Most banks now offer banking online. Make sure you're doing business with an FDIC insured bank. Check for the FDIC logo or go to www.fdic.gov and see if your bank is on the list. When using bank services, there should be an extra 's' in the URL (example: https) letting you know the site is secure and encrypted. A locked padlock should be visible in the right hand corner of your screen. Click on the lock to view the type of encryption the site uses. If there is no padlock and no other visible sign of security, do not enter private passwords or other information.

Banking online tip 3: Protect Passwords

When creating personal identification numbers (PINs) and passwords, it's easy to use the same password everywhere. Some people even use the word password as their password. While these practices may be easy, they aren't safe. Nor are passwords containing family names, pet names, birthdays, anniversaries, telephone or address numbers. Such passwords are too easily hacked.

Create passwords from combinations of letters and numbers. Change your passwords regularly. If you are storing passwords, make sure the storage method is encrypted. When choosing security question answers, try to choose questions with answers that aren't readily known by other people.

Keep a password and banking information list with important papers inside a safe or deposit box. If something happens to you, someone may need the information to take care of business for you or to settle things in case of your death.

Banking online step 4: Check Statements Regularly

Keep an eye on bank and credit card statements and other financial mailings. If you find errors or suspect fraud, contact customer service immediately. Keep record of all communication with banks and financial services.

Be wary of unknown companies seeking your private information. When using credit or debit cards online, maintain the same safe practices that apply to banking. Make sure the site is secure before divulging information. Print ourt receipts for all online transactions. Check statements regularly and immediately report errors or possible fraud.

Banking online step 5: Beware Phishing (fishing) Emails

Never click on emails from unknown senders. Scam artists send emails that appear to be legitimate in an effort to steal your money and or identitiy. Banks, Credit Card Companies, Paypal and Ebay are often featured in fake emails.

Legitimate emails from your bank, credit card and other companies will not ask for personal information via email. They will not ask for passwords or account numbers in emails.

Never click on links inside emails from questionable sources. Scam artists imitate legitimate websites and steal your information when you log on to their phony sites.

Never download attachments from unknown sources. You could be opening your computer up to viruses, trojans and worse.

Banking Online Summary

Bill paying, shopping and banking online are convenient and save time and money. Before you log on, make sure you've activated barricades to protect your privacy and prevent fraud. Once online, make sure you're doing business with a legitimate bank. Use creative passwords and protect them. Check financial statements regularly and monitor for any sign of errors or potential fraud. Beware fake emails. Practice smart, safe banking online.