Is Online Banking Safe to Use?

Is online banking safe to use? It is an interesting question as some love using online banking while others fear it. And it is easy to see why because we live in a time where we can literally purchase everything online. However, with that comes skyrocketing cyber crime which seems to be getting worse by the day. Hence the dilemma.

The Fears of Online Banking

These fears can be summed up in three areas:

  1. The fear of my bank account being hacked and compromised resulting in loss of money.
  2. Computer or system glitches preventing me from accessing my account.
  3. Human error resulting in moving money to the wrong location or source resulting in loss of funds.

Are These Online Banking Fears Founded?

In a word, no. Online banking has come along way and here are three reasons why these fears are unfounded:

  1. Security-Online banking systems have sophisticated security software to protect the user from hacking. For example my bank uses Trusteer Rapport which is security software developed by IBM. Also, banks have a guarantee to users to compensate them for any losses due to their account being compromised. Here’s an online guarantee from my bank, “We will fully reimburse you in the unlikely event that you suffer direct financial losses due to unauthorized activity in your accounts through Digital Banking Services provided you have met your security responsibilities.”
  2. Systems glitches are pretty rare. I have been using online banking for a long time cannot remember the last problem there was. There could be the rare time that the system is down for maintenance but the website usually has a warning if this is the case.
  3. Extra steps implemented to prevent human error. When you do any transaction, there is usually a step that asks you to confirm a transaction or asks if you are sure. This gives you the opportunity to double check. If you do make an error, who can call the bank’s call centre or email their help desk to get help to reverse the transaction.

Benefits of Online Banking

Here are two benefits below:

  1. Time. This one is obvious! What is faster? Driving to your bank to pay a bill or apply for a credit card or turning on your computer going to your bank’s website and doing it all there? You save lots of time!
  2. Convenience. Imagine, you can pay your bills, pay your taxes, invest, and apply for a loan at once. If you did it the old way, you would have to line up at a bank, see multiple people, and potentially go to other places to pay for your bills or invest. With online banking, you can do it all in the comfort of your home.

Conclusion

Should I use online banking? If you value time and convenience than the answer is a resounding yes! The benefits definitely outweighs the risks and if something does go wrong, you bank will compensate you for any losses. It’s a win win situation which is a rarity in our world today. So, why not give it a try?

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