Safe Online Banking Tips
Many people enjoy the convenience of doing all their banking over the
Internet, but some consumers worry about the safety of their online
transactions. The Iowa Society of Certified Public Accountants recommends
that you ask these questions to ensure that your online bank dealings are
secure.
Do I Know Who I’m Dealing With?
Many legitimate banks offer online options, but there are also a few
scammers out there using the Internet to cheat people out of their money or
gain access to their personal information so that they can use it in illegal
transactions. Before you open an account with an unknown organization, read
up on the information they provide online to see how long it has been in
business and whether they are regulated by state and federal banking
authorities. You can also find out more information in the “Bank Find”
section of the website of U.S. Federal Deposit Insurance Corporation, a
government agency, at www.fdic.gov.
If the bank’s name is a familiar one, be aware that some con artists use
sound-alike names that trick people into believing they are dealing with a
well-known organization. Double check the full organization name and
spelling to be sure you’re working with the right bank.
Is It FDIC Insured?
You should only deal with a bank if your account there is insured by the
FDIC. If you have up to $250,000 in an FDIC-insured bank account, including
a checking or savings account or a certificate of deposit, the FDIC will
reimburse your money if the bank fails. Look for the FDIC logo on the bank’s
site and for the words “Member FDIC” or “FDIC insured.” It’s also a good
idea to go to www.fdic.gov to
locate the bank on the FDIC’s list of insured institutions. Remember, too,
that according to the FDIC, banks chartered overseas may not benefit from
FDIC insurance. If you’re considering an overseas bank, find out if your
money will be covered.
How Can I Fend Off Phishing?
“Phishing” is a common scam in which consumers receive an email purportedly
from a legitimate organization–such as their bank–asking them to confirm
personal information. Those who are taken in by these scams may end up
unintentionally revealing their account numbers, Social Security number, or
other confidential details to thieves who will use the information to engage
in illegal transactions. Banking online doesn’t make you more vulnerable to
phishing attacks, but it’s certainly a problem you should be aware of. The
best defense is to call your bank’s customer service number and verify that
any communication you receive is legitimate.
Will My Personal Information Be Protected?
There are many ways in which online organizations secure the information
they receive, including passwords and data encryption. For your own peace of
mind, it’s a good idea to find out in advance what measures the bank will
take to ensure that your account number or other personal information does
not fall into the hands of identity thieves. Also, whether you bank online
or at a bank branch, the organization is required by federal law to inform
you of its privacy policy, including whether it shares your information with
others. You have the right to ask the bank not to share details about you.
Your CPA Can Help
If you have questions about online banking–or any other issues affecting
your family’s finances–remember that your CPA is a great source of
information. Turn to him or her with all your financial questions. If you are looking for a CPA, go to
www.findanIowaCPA.com.
