How secure is online banking?

Online banking means nothing more than that banking transactions are carried out online. On the one hand, this saves time and is uncomplicated for customers. On the other hand, it of course also opens up other options for criminals than with classic branch banking. 

Digital banking is increasingly replacing analog transfer methods. In 2023, according to the Federal Association for Information Technology, Telecommunications and Media 78 percent of people over 20 used online banking. Above all, the trend of mobile banking on smartphones caused additional increases in numbers. The banks have reacted. Every major financial institution now offers an online banking option. 

Online banking can be done conveniently from home, is independent of any branch opening times and is therefore very flexible. But for some users, digital banking still has a reputation for being less secure. They fear that hackers will access their bank details via Trojans or paralyze their computers using viruses in order to extort data. Is there any truth to these fears and what options do customers have to increase security when banking online?



Security in online banking:

Whether online banking is secure or not depends primarily on how secure banks and users make it. In principle, special caution applies because particularly sensitive data is involved. Hackers therefore like to target digital banking transactions.

You have to differentiate between security on the bank's side and on your own device. For example, if you use your bank's website via a browser for online banking, responsibility for secure data transmission also lies there. However , your own computer or your WLAN connection also offers a target for hackers.

Phishing emails , manipulated websites, etc. pose dangers that do not exist with analog banking. Phishing emails are fake emails that at first glance look legitimate, as if they were a message from a bank. The goal is to manipulate the recipient to the point that they voluntarily hand over sensitive banking information. This also redirects to manipulated websites that are modeled on bank websites. In principle, this does not make online banking any more dangerous than analog banking transactions. As long as users adhere to a few rules of conduct and security measures, they can carry out their banking transactions online with peace of mind and don't have to worry about their data.

General safety measures:

The most effective protection for secure online banking is careful user behavior and a dose of skepticism in the right place. It is very unlikely that accounts will be hacked via the Internet connection without your intervention. Even more so if you adhere to the following rules:

Use a secure internet connection. In principle, wired access via LAN offers fewer external attack surfaces than WLAN connections. If you surf via Wi-Fi, it is best to use your home network for online banking.

Never use mobile banking on public networks! Hackers can easily access data here.

Install antivirus protection if you don't already have one. If you only use mobile banking, it is also worth protecting your smartphone . Then make sure to always update your antivirus protection.

Be careful with emails from which you do not know the sender and/or which ask you to enter login details. Always check where an email comes from and do not click on questionable links. If you are also unsure whether an email really comes from your bank, it is best to simply ask.

Set an account limit (upper limit for transfer amounts) so that the damage is limited in an emergency.

Use a secure TAN procedure for transferring online banking. We have presented the available procedures in our TAN overview . TANs are usually used in combination with a PIN. Make sure to protect both numbers well.

If you want to be on the safe side, you can also carry out every online banking process in so-called incognito mode, i.e. use an incognito tab. Alternatively, you can clear your cache after each operation.



Conclusion: Online banking is so safe:

If users adhere to certain rules, online banking is very secure. Cases in which hackers managed to access data and plunder the account are usually only known in connection with inexperienced behavior. Therefore, use the protective measures such as two-factor authentication , modern TAN procedures, etc. that the bank makes available to you. Also make sure to always do your online business on a secure Wi-Fi network and protected with a strong password. Then you don't have to worry about the security of your bank details when banking online.

Here are some common questions related to online banking

Q: How secure is online banking?

 Ans: Online banking employs various security measures to protect your financial information. These include encryption, secure login credentials, and multi-factor authentication. Additionally, banks invest in advanced security technologies and regularly update their systems to counter emerging threats. While no system is entirely risk-free, online banking is generally considered safe when users follow recommended security practices, such as keeping passwords confidential and using secure networks.

 Q: How do banks protect against unauthorized access to online banking accounts?

Ans: Banks implement multiple layers of security to prevent unauthorized access. This includes the use of secure login credentials (username and password), multi-factor authentication (requiring an additional verification step), and monitoring for unusual account activity. These measures work together to verify the user's identity and protect against unauthorized entry.

Q: Can public Wi-Fi networks compromise the security of online banking?

Ans: Yes, using public Wi-Fi networks can pose security risks. It is recommended to avoid conducting sensitive online banking transactions on public networks. If necessary, consider using a virtual private network (VPN) to encrypt your connection and add an extra layer of security. Always ensure that you are on a secure and trusted network when accessing your online banking account.

 Q: Are mobile banking apps as secure as traditional online banking platforms?

Ans: Yes, reputable mobile banking apps adhere to stringent security standards. They use encryption, secure authentication methods, and regular updates to protect your financial information. However, it's essential to download apps only from official app stores, keep your device's operating system up to date, and follow recommended security practices to ensure the highest level of security.

Q: How often should I change my online banking password?

Ans: It is advisable to change your online banking password regularly, typically every three to six months. Choose strong, unique passwords that combine letters, numbers, and symbols. Avoid using easily guessable information, such as birthdays or names. Regular password changes enhance the security of your online banking account by reducing the risk of unauthorized access.

Q: Can I trust online banking completely?

Ans: While online banking is generally secure, it is essential to remain vigilant and follow recommended security practices. This includes using strong passwords, enabling multi-factor authentication, and avoiding risky online behavior. No system is entirely foolproof, but responsible user behavior, coupled with robust bank security measures, greatly minimizes the risks associated with online banking.