Banks have a major role to play in the financial setup of any country. Without them, it would be impossible for people to do business or store their hard-earned money. Therefore, banks are given special importance by the people. Banks too have to realize their responsibility and provide their customers with services that are up to the mark. With the advancement in technology, banks have tried their hand at electronic banking. It is a very ingenious concept and has been well-liked by the customers as well. However, there are some issues regarding the security of electronic banking that have stopped customers from fully embracing it.
Security Issues with Online Banks
Security is one of the biggest concerns that customers have when it comes to online banking. There have been many incidents reported in the past few years of security breaches which have prompted customers to become wary of electronic banking. The following are some of the security issues that people are concerned about with regard to online banks.
• Cyber Criminals
The biggest security threat when it comes to online banking is that of cybercriminals. With the sensitive financial data of the customers being handled by the banks on the internet, cybercriminals get the chance to sneak in and steal it. If the bank does not have adequate security measures in place then there is every chance that it will get robbed by these internet thieves in a matter of seconds. Millions of dollars have been stolen by cybercriminals over the past year or so because of inadequate safety measures undertaken by online banks.
• Unreliable Banking Apps
Banking apps have become the number one means of online banking. A number of the online banks have introduced their banking apps which provide numerous value-added services to their customers. While they are very beneficial for the customers, they are not that reliable. Banking apps run on Smartphones and they are not inherently very safe. There are various security flaws present in them, which make them a preferred target for hackers. A Smartphone can be easily hacked and when that happens, the information stored on the banking app can become instantly compromised. Moreover, Smartphones are susceptible to malware infections as well which could lead to the stealing of sensitive financial data of the customer stored on his phone.
• Loopholes in Bank Security
Banks have been trying to sure up their security by adopting various protocols that can keep the cybercriminals and hackers at bay. However, there are loopholes present in online bank’s security that these unscrupulous people can easily exploit. No matter how good the security measures of an online bank are, there are cybercriminals who manage to find a way past them. It has happened on countless occasions so far in the last couple of years. This is a cause of real concern and is the main reason why people are still not sure about online banking.
• No Reliability Guarantee
Another security consideration that people have to make when using online banking services is that of connection reliability. Online banks rely heavily on their website and require a stable connection to the internet if they are to be accessed by their customers. The websites of banks, however, can go down suddenly and not be up for several hours, leaving customers logged out of their bank accounts. This can be quite frustrating and annoying for the customers of an online bank and might turn them away from using its services. Online banks have to ensure that their websites don’t go down for long periods of time or they might risk losing their customers.
• Failed Banks
Online banks are at the forefront of scams and failed promotions. There have been several reports of failed banks in recent times and most of them are online banks. This sketchy nature of the online banks is another reason why people are distrustful of the whole electronic banking concept. This is, perhaps, the reason why the SEC has been very vocal about this security issue concerning the online banks. As per the SEC advice, people should take extra care when investing any money in online banks. Customers of online banks should see to it that the online bank’s promotions are in fact genuine and authentic before signing any financial agreement with it.
. Spotting Counterfeit Bank Notes
Another security consideration that people have to take into account when dealing with online banks is that of spotting counterfeit banknotes. It is not that easy to do. However, you can learn all about authentic banknotes from this source. It will provide you all the information you need to distinguish between genuine and counterfeited banknotes.