Online Banking Compliance
Banks have guidelines they must follow for handling your transactions, referred to as compliance. Many of these are decided by law. They must comply with these guidelines, and special ones designed for Internet use as well.
Other People Are Reading
-
Guidance
-
The Federal Financial Institutions Examination Council issued a document in 2001 with guidance to banks on how to set up their online banking systems to comply with the law. This guidance, entitled "Authentication in an Internet Banking Environment," continues to be updated, since it outlines the basic steps banks should take to be in compliance.
Security
-
Security is the main focus for compliance with online banking. Banks must have specific safeguards to remain compliant with the law. This includes the unique bank account numbers for your accounts and a secure website for online banking that requires authentication. Authentication is the process of verifying who you are on a website, often through passwords or security questions. Most financial institutions require a separate log-in password beside your PIN for getting into your online account as part of that security compliance.
-
Benefits
-
Following compliance protects the bank and its customers. The bank is protected from legal action by following the law and protected from hackers by securing their site and users' accounts. Users protect their accounts by following proper log-in procedures, such as not sharing account numbers and keeping their PIN private.
-
References
Resources
- Photo Credit Onlineüberweisung image by PhilK from Fotolia.com
