Online banking simply means that banking transactions are carried out online. On the one hand, this saves time and is uncomplicated for customers. On the other hand, of course, it also opens up other possibilities for criminals than with classic branch banking. That’s why TECHBOOK investigated the question of how safe or dangerous online banking actually is.
Digital banking is increasingly replacing analog transfer methods. According to the Federal Association for Information Technology, Telecommunications and Media (Bitkom) 78 percent of people over the age of 16 in Germany use online banking. Above all, the trend towards mobile banking on smartphones caused additional numbers to rise. The banks have reacted. Every major financial institution now offers an online banking option. Pure smartphone banks like N26 and Revolut are also successful.
Online banking can be done conveniently from home, is independent of any branch opening times and is therefore very flexible. But for some users, digital banking still has a reputation for being less secure. They fear that hackers will access their bank data via Trojans or paralyze the computer with viruses in order to blackmail data. Is there any truth to these fears and what options do customers have to increase security in online banking?
Security in online banking
Whether online banking is secure or not depends primarily on how secure banks and users make it. In principle, special caution is required because particularly sensitive data is involved. Hackers therefore like to keep an eye on digital banking transactions.
You have to differentiate between security on the part of the bank and on your own end device. For example, if you use your bank’s website via a browser for online banking, the responsibility for secure data transmission also lies there. However, your own computer or your WLAN connection is also a target for hackers.
Phishing emails, manipulated websites, etc. pose dangers that do not exist in analogue banking. Phishing e-mails are fake e-mails that appear legitimate at first glance, like a message from a bank. The aim is to manipulate the recipient to such an extent that he voluntarily gives out sensitive bank data. For this purpose, it is also forwarded to manipulated websites that are modeled on bank websites. In principle, however, this does not make online banking any more dangerous than analog banking transactions. Because as long as users adhere to a few rules of conduct and security measures, they can do their banking online with peace of mind and do not have to worry about their data.
General security measures
The most effective protection for secure online banking is careful user behavior and a dose of skepticism in the right place. It is very unlikely that accounts will be hacked via the Internet connection without your intervention. Even more so if you stick to the following rules:
- Use a secure internet connection. In principle, wired access via LAN offers fewer attack surfaces from outside than WLAN connections. If you surf via WLAN, it is best to use your home network for online banking.
- Never use mobile banking in public networks! Hackers can easily access data here.
- Check the address bar of the online banking website; https:// is a MUST!
- Set a secure password for your online banking. You can find out more about this in the linked TECHBOOK article on password security.
- Install an antivirus if you don’t already have one. If you only use mobile banking, it is worth protecting your smartphone as well. Then make sure to always update the antivirus.
- Be wary of emails from unknown senders and/or asking for login credentials. Always check where an email is coming from and don’t click on questionable links. If you are also unsure whether an e-mail really comes from your bank, it is best to simply ask.
- Set an account limit (upper limit for transfer amounts) so that the damage is limited in an emergency.
- Use a secure TAN procedure for transfers in online banking. We have presented the available procedures in our TAN overview. TANs are usually used in combination with a PIN. Make sure you protect both numbers well.
- If you want to be on the safe side, you can also carry out every online banking process in so-called incognito mode, i.e. use an incognito tab. Alternatively, you can also clear your cache after each process.
Also interesting: The best free anti-virus programs
Conclusion: Online banking is so secure
If users follow certain rules, online banking is very secure. Cases in which hackers managed to access data and plunder the account are mostly only known in connection with careless behavior. Therefore, use the protective measures such as two-factor authentication, modern TAN procedures, etc. that the bank makes available to you. Also, make sure you always do your online business on a secure WiFi network and protected with a strong password. Then you don’t have to worry about the security of your bank details when banking online.