Is online banking safer on laptop or phone?
Randal Wolverton, a certified public accountant who serves on the American Institute of CPAs' Forensic and Litigation Services fraud task force: “My preference is to bank with computers in a secure environment, as thieves may find smartphones more attractive to attack,” he says.
Banking apps can be safer than using an online banking portal due to biometric-enabled login options for your phone and the app itself. Your face, your fingerprint and your phone are a lot harder to hack than your username and password.
Generally, online banking is safe, but there are steps you can take to look after your money and identity: Use a strong password that avoids common words, numbers or keyboard patterns (such as 'password' or '123456').
A dedicated Windows PC is good choice for your banking needs. By the way, that is not only my opinion, but European and US banking authorities have repeatedly suggested using a dedicated banking PC as well. Tablets and smartphones run on operating systems that are a generation younger and better than your normal PC.
Can one of these devices better protect you from fraud than the other? According to some data-protection experts, banking with a smartphone via an official mobile app provides more security than a computer. That's because computers make it easier for users to inadvertently download malware.
- Password-protect all banking access. ...
- Choose strong and unique passwords. ...
- Enable two-factor authentication. ...
- Log out when you finish banking. ...
- Avoid public Wi-Fi. ...
- Don't use a shared computer. ...
- Sign up for banking alerts. ...
- Guard against phishing scams.
Risks of mobile banking
It's difficult to find software or technology that is entirely risk-free, and that holds true for mobile banking apps. The 2021 Nokia Threat Intelligence Report indicated that 50% of banking malware is targeted toward Android users, because Androids run on a fully open-source operating system.
However, given the advances in browser safety, there's no longer a general consensus among experts as to whether apps or browsers are safer for online banking. Essentially, both are secure from the source, but it's up to users to avoid making mistakes that can give thieves easier access.
Hackers can slip through security measures by using tricks like credential compromise and fake public Wi-Fi, and by sending out phishing emails. The threat is constant and difficult to avoid if you don't know how to protect yourself. That's why you need to know what to do if your bank account gets hacked.
Most online banks are FDIC-insured, just as most traditional banks are. You can always verify whether a bank is FDIC-insured by using the FDIC's BankFind database of insured banks.
What is the best way to do online banking?
- Set up transaction alerts. ...
- Utilize Positive Pay. ...
- Choose strong and unique passwords. ...
- Enable multi-factor authentication. ...
- Update your device regularly. ...
- Authorize dual approval. ...
- Monitor your statements. ...
- Avoid email phishing.
Online banking does have some potential disadvantages. These include a lack of face-to-face customer support, cash deposit services and a risk of technology failures or security breaches.
In general, online banking offers a broader range of services than mobile banking. Mobile banking apps enable users to conduct essential transactions such as checking balances, viewing transaction history, transferring funds, and chatting with support.
ACH payments go through clearinghouses that enforce strict regulations, making it a secure payment method. ACH also typically offers lower fees because it's all digital and eliminates many of the processing fees associated with cards or checks.
In conclusion, computers and mobile phones have their own unique advantages and the best option will depend on the user's specific needs and preferences. A computer is better for tasks that require more processing power, while a mobile phone is more portable and convenient for everyday use.
- Google Pay. Best for Android Users. Jump To Details. ...
- Cash App. Best for Buying Stocks and Bitcoin. ...
- PayPal. Best for Shopping Online. ...
- Zelle. Best for Instant Bank-to-Bank Transfers. ...
- Apple Pay. Best for Purchases iOS and Mac Users. ...
- Samsung Pay. Best for Contactless in-Store Purchases. ...
- Venmo. Best for Paying Friends.
The biggest risk of online banks is that someone will access your savings or checking account and steal your information and money. This typically happens when your account is hacked by cybercriminals who get your username and password. However, these risks are not limited to banks that operate exclusively online.
Thanks to encryption and secure Internet connections, online banking is a convenient and safe way to handle your money. Peer-to-peer payments are often safer than paying someone with a paper check.
| Bank | The Ascent's Rating | FDIC Insured? |
|---|---|---|
| Western Alliance Bank | 4.25 | Yes |
| SoFi | 4.00 | Yes |
| Wells Fargo | 4.00 | Yes |
| Axos Bank | 3.50 | Yes |
Even the best mobile banking apps are vulnerable to breaches, data exposure, and scammers. But that doesn't mean you need to give up on the convenience of banking from your mobile phone. Instead, watch out for common mobile banking scams and vulnerabilities, and follow our best practices for keeping your accounts safe.
What are two reasons to not use online banking?
- Customer service lacks personal touch.
- Not an option for those lacking access to the internet.
- ATM options may be limited.
- Greater due diligence required to vet the bank.
Concerns about Identity Theft and Security
Therefore, even if you may generally use mobile or online banking with confidence, be cautious to avoid using insecure networks, change passwords frequently, and safeguard your login information.
Even though FDIC-insured consumer bank accounts are protected from hack attacks, individuals may benefit from the added level of security a dedicated banking PC can provide. The FDIC site explains how to ensure that your account is insured.
The Edge browser in Windows 10 is a new sandboxed app, so it's much better for banking than Internet Explorer. Otherwise, Chrome is the most secure alternative, because it runs in Google's own strong sandbox. Some security companies also provide add-ons, such as Kaspersky Safe Money and Bitdefender Safepay.
A phone number alone is not enough for someone to hack your bank account. But, as outlined above with regard to someone having your email address, someone with your phone number could potentially call or text you as part of a phishing scam with the ultimate aim of hacking money from your accounts.
