Contrary to popular belief, experts deem online banking and billing safer than traditional methods, since it eliminates the paper trail and gives fewer people hands-on access to your information. And while Internet security threats like "hacking" and "phishing" are very real, they give banks and service providers all the more reason to make protection a priority — especially if they want your online business.
The June issue of Real Simple offered a quick primer on security features you should be looking for when performing online billing and banking tasks. But it's just as important that you take responsibility, exercising common sense and taking proper precautions to ensure your safety. Keep these points in mind:
- Be proactive about maintaining the security of your personal computer. In addition to installing the most up-to-date anti-virus and anti-spyware programs, familiarize yourself with your Web browser options (look under "Preferences" or "Tools"), which may allow you to reject "cookies" (attempts by websites to access your browsing habits) and un-"remember" forms, log-ins and passwords. While saving personal information makes your day-to-day easy and more convenient, it's not advisable from a safety perspective.
- Do your research. Acquaint yourself with the Privacy Policy and security features offered by each institution and service provider you do online business with. Look to see if they have recommendations to maximize security (such as password length) and learn what measures they are taking to keep your information safe. It's not a bad idea to do a little personal research into the latest phishing scams and viruses so you know what kind of threats and language you should be wary of.
- Always access your accounts from your own computer and Internet connection. Never pay bills or make banking transactions from someone else's computer or a shared computer at the office, library or a cybercafe.
- Focus on the task at hand. Be sure to manually enter your bank or service provider's website when you want access, and exit the site immediately (making sure to log off) upon completion. Don't leave the browser window open while you peruse other websites or check e-mail.
- Be smart about e-mail. Avoid sending personal information, attempting to change passwords (notifications sent to confirm a change are OK), or logging on to an institution's website through a link sent via e-mail. To protect your computer in general, always use caution when downloading files or clicking on links sent via e-mail. And while you absolutely should take advantage of e-mail security alerts offered by an institution or service provider to inform you of suspicious activity, be sure to verify their authenticity before moving forward.
- Get creative and stay vigilant regarding your password. Avoid the obvious (milestone dates, child's name) and aim to use a mix of letters, numbers and symbols. For maximum security, change your password often — put a notation in your calendar every couple of months as a reminder. It should go without saying that any information regarding your password should be kept to yourself.
- Be organized and stay in-the-know with all your accounts. It's a great feeling knowing that you can say "bye bye" to paper statements and perform tedious banking tasks with a click of a button. But even if you're not getting physical statements in the mail, you're still responsible for viewing them online and closely monitoring your accounts. If anything you should be doing it more often, since you have easy, immediate access.
- Report fraud immediately. If you suspect your information is being misused or your identity has been stolen, contact your institutions and service providers right away to stop the crime in progress. To prevent future fraud, contact the three national credit-reporting organizations (Equifax, Experian and TransUnion) and the Federal Trade Commission to place a fraud alert on your name and identity. It's imperative to have a record of the crime, so filing a police report is also a must.