Technological advancements have meant that there are more banking options available than there used to be. Where once, the only way to access our bank accounts was by visiting a local branch, we are now able to manage finances online and via mobile. From paying bills and checking transaction information to setting up standing orders, it is now possible to carry out everyday banking tasks via desktop and mobile devices.
As well as the tech that provides access to these services while you’re on the go, another major addition that makes this digital setup possible is robust security. In order to get started with online banking and also to use this digital service, you will have security steps to go through before you can see your banking status.
Here, we look at how the technology enhances cybersecurity and keeps your accounts safe.
Why security is necessary
While technology has opened up new avenues when it comes to how we manage our finances, there are also some risks to be aware of. As with any type of online platform, there is a chance that hackers could tap into your financial and personal details.
But banks and other financial institutions apply robust security measures. These are necessary to avoid cyber threats, reduce the risk of fraud, and prevent unauthorised access.
How financial institutions safeguard your online accounts
Here are some of the ways that financial institutions apply tech to ensure your finances are as secure as possible.
● Apps
Apps are an accessible way for users to see their financial information, wherever they are located. There are several security measures in place for a lot of these apps.
Multi-factor verification is a popular protective measure. Here, there is usually a request to enter a password and a number or code that is sent to your mobile phone.
Many apps include biometric authentication, which is a cybersecurity process that uses biological information such as your fingerprint or voice command to confirm that you are the right person to access the account.
These advanced security features are designed to enhance user protection and secure access.
● Instant card control
Should something unusual happen to your account, such as an unexpected payment for clothing you didn’t buy, you might be able to instantly freeze or cancel your card.
This is also a useful function if you’ve lost your card. Since the contactless spending limit increased to £100 in 2021, it can be easier to buy a lot of shopping at the till. However, it can also mean that if your card is taken, you could find that a lot of your money is spent quickly by the person who stole it. Therefore, being able to freeze or cancel your card can stop anyone else from using it.
● E-commerce transactions and credit card protection
Some credit card companies offer protection against unauthorised transactions, chargebacks, and fraudulent purchases. When taking out a new credit card, it’s worth looking at the security measures in place, such as additional identity checks. Multi-factor authentication and firewalls are also often used to add protection for credit card users and their data.
While ensuring you understand how to keep your finances secure is essential, it’s also worth being aware of other ways that hackers can access your account.
There was an increase in fraud in 2022. Scammers have been using social media and messaging platforms like WhatsApp to trick people into handing over access to their accounts, so it’s important that you stay aware and look out for anything that doesn’t look right.
Banks and financial institutions will never ask for your PIN or password in a text message or email. Also, if you receive anything that appears to be from your bank, it’s worth double checking that the correspondence is genuine. If it contains a link it may be safer to not click on it, but you should check in the bank’s app or in your online account.
Technology has made digital banking safer. However, it’s important that you take steps to protect your finances when using online financial services.
