Issues With Online Banking
People are attracted to the idea of online banking for several reasons. You can manage your money in the comfort of your own home, avoid inconvenient hours of service, and never have to deal with lines at the banking branch. The idea may seem like a miracle with all these advantages, but there are also plenty of risks involved, especially when it comes to security.
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Security Risks
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"Millions of people have had their checking accounts compromised, mainly as a result of online Banking," according to the United States Computer Emergency Readiness Team. There are several ways your account could be compromised: phishing, account hacking, pharming, glitches.
According to Readiness Team, "Phishing attacks use fake email messages from an agency or individual pretending to represent your bank or financial institution." This email, pretending to be your bank, will request information such as name, account number, password, social security number, and credit card information. A similar approach, called "vishing" is when someone calls you pretending to be a banker from your bank and asks this information over the phone.
Pharming is when a hacking code is downloaded onto your computer when you open a certain email or go to a particular link. These are problems that banks actually face. For example, in 2004 Abbey National's Online Bank had encountered issues involving phishing. According to Times Online, online bank, Morgan Stanley, faced a security issue where customers were able to enter other customers accounts.
Technology Comprehension Issue
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Problems could arise for those who do not understand computer and internet technology. Another issue with online banking is comprehension issues regarding technology. If someone who does not understand technology well signs up for online banking frustration could occur and mistakes could easily be made. According to Carol Sergeant of Financial Services Authority, consumers could experience information overload, making them more vulnerable to security issues, such as scams and frauds.
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Internet Problems
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online banking can sometimes be slow due to the Internet. Internet speed and function problems are another concern for online banking customers. If your internet is being slow, you may find yourself staring at a computer screen for quite some time waiting for your banking transactions to go load. The internet is also susceptible to failures and crashing. Due to these types of issues, transactions might take a bit longer to show up. This can cause problems when you are dealing with finances.
Volume Management
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Volume Management is a concern of online bankers. Volume management and prediction can be misjudged by online bankers. According to Sergeant, "Many banks going online have significantly misjudged volumes. When a bank has inadequate systems to cope with demand it may suffer reputational and financial damage, and even compromises in security if extra systems that are inadequately configured or tested are brought online to deal with the capacity problems."
Prevention of Security Issues
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Practicing Internet security can prevent issues from occuring. You can do things to prevent running into security problems, According to the U.S.Computer Emergency Readiness Team, such as: installing an anti-virus, firewall and anti-spyware program, using unique login information, checking your account balance on a regular basis, accessing your information strictly from your own home and reporting any discrepancies.
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References
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