How Secure Is Online Banking?

Financial institutions take every precaution when setting up their websites to accommodate customers who use online banking. They realize that it's important to keep customers' information protected--If customers can't trust a service, they may not do business with the bank. The following are standard practices many banks follow to safeguard customers' information while they are engaged in online banking.

Password and PIN

Your password and personal identification number (PIN) are unique. Don't share them with anyone, and change your password every month or so.

Multi-Question Authentication

Multiple forms of identification are needed to access online banking site, such as a password and a personal question that only you will know the answer to.

Encryption

Encryption software converts information into a code that is readable by only you and your bank. The higher the encryption level, the more secure the system.

Privacy Policies

Bank privacy policies are very stringent. There are federal and state mandates that banks must follow to protect their customers' privacy (see Resources).

Tips

There are things you can do to safeguard your information. Install updated anti-virus software, don't give out personal information via emails and log off from the bank's secured site after you complete your online banking activities.

Resources

• State Department Federal Credit Union: Customers' Privacy