Online banking, also referred to as Internet Banking, is a term that is used to describe transactions that are done over the Internet. This may include payments and loans that are made through a banks website. The advantage of this is that a customer may be able to continue transactions outside of the bank, beyond banking hours and from anywhere that an Internet connection can be made. All one really needs is a computer with browsing capabilities that is connected to the Internet. No other special items are required.
Through Internet Banking, one can retrieve information such as bank statements and loan details. One can also pay certain bills, make purchases or sales, and even transfer funds between accounts.
Although there have been questions as to the safety of banking online, it is in many cases particularly safe. There are many security measures taken by banks to ensure that the data entered will not be retrieved by any third-party computer applications or hackers. Online banks utilize a system that encrypts the information that one enters into the site. This makes it almost impossible for another party to get that information once it is sent to the banks servers.
There are more regulations now in the US that require banks to have more ways to safely bank online. This is because in the past the US would let their Internet banking customers use only single password identification. This mode of protection is not very effective especially if a hacker happens to be observing what is being typed from afar (which is not far from impossible).
Because of the possibility of hacking, many customers would rather not do their banking online. Most of them perceive it to be too open to fraudulent activity. After all, security measures are never quite 100% effective. Contrary to what most users believe, however, the number of fraud victims to online banking is very small. In fact, the usual method of physically going to the bank is more prone to danger than online. This is made more apparent through cases of credit card and signature forgery as well as identity theft. Offline, the crimes are actually quite more dangerous than online.
The only reason that online crime can be vulnerable to crime is if users are careless with how they handle their online bank information. At present, there is a method called “phishing” which refers to hackers attempting to acquire information (such as credit card numbers, passwords, etc.) via illegal means using Internet programs or even simple emails or attachments. It has been made clear that crimes of this nature are geared towards the attainment of financial information. And the only way users fall victim to “phishing” is if they are gullible enough to give up their information to these hackers.
Other than the possibility of being hacked, users can be assured that online banking is safe. The only advice that can be given is for them to use an online bank that is connected with a physical bank that they trust. Online banking can change the speed of life for many busy individuals, making it more convenient for them to handle their money without having to always be present at their local bank.
