Protecting Your Bank Account Information: Tips for Secure Transactions

Understanding Banking Information

Banking information is all information about a bank’s client that can be used to carry out banking transactions like depositing, withdrawing, transfers, or account management.

The information includes and is not limited to:

• Account holder information
• Bank account details
• Personal Identification Number (PIN)
• Passwords
• Debit/Credit card details
• Transaction history

Fraudsters target financial information because, with it, they can access your bank account or credit cards, allowing them to execute their fraudulent activities.

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Common Threats to Banking Information

There are several techniques that fraudsters prefer to use to access a person’s banking information.

Some of the commonly used tools include:

1. Phishing

Phishing is the act of sending emails or other messages masquerading as reputable institutions such as banks or card companies to obtain sensitive information from the recipients.

This technique is possibly the most used by scammers to obtain banking information, with recent statistics showing that out of all emails sent, a vast 1.2% are malicious. That’s about 3.2 billion malicious emails sent daily!

2. Improper Disposal of Voided Checks or Expired Cards

A voided check is a blank check featuring the word VOID written across its entire face using a blue or black ink pen. These checks are commonly used to set up direct deposits and recurring billing.

While by voiding a check means it can’t be cashed in, voided checks feature sensitive banking information such as the bank account number and routing number.

Hence, when they fall into the wrong hands, it’s easy for scammers to use these details to carry out fraudulent activities. So, if you have voided checks, dispose of them properly and securely.

Expired credit or debit cards are also a rich source of banking information. Scammers can retrieve these cards from trash bins and use the information to enrich their databases with your details.

3. Malware Attacks

Malware works by tricking computer users into clicking on or installing programs they shouldn’t on the internet. Once the user falls into that trap, the malware will infect, damage, or scan through the device to fetch all the information it’s programmed to get from the user.

It might not be as popular as phishing, but with over 6.06 billion malware programs detected in 2023, it still falls under the category of the most commonly used tools by scammers to get banking information.

4. Skimming & Card Cloning

Skimming involves using physical devices in physical ATMs, gas pumps, and other payment terminals to steal card details. The obtained information is then used to make cloned cards for fraudulent transactions.

5. Shoulder Surfing

Shoulder surfing is physically standing behind someone as they enter their PIN, passwords, or other sensitive information on their computer or keypad, intending to use the obtained information to gain unauthorized access.

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6. Public Wi-Fi Vulnerabilities

Public Wi-Fi networks more often lack enough protection, making them an attractive avenue for use by hackers to obtain sensitive information. Hackers have their own way of getting a record of all the logins made through these networks and the passwords used, making the remaining part of their crime execution easy.

10 Tips for Protecting Your Bank Account Information

Thankfully, there are several effective ways to keep your banking information safe. Most of these methods are simple and easy to ignore, but they play a key role in securing your banking information.

Let’s look at some of the best practices:

1. Choose Strong Passwords

Before you think of other methods, the first thing you will want to ensure is that you are using strong passwords for your accounts.

Obvious passwords like your DOB, phone number, or even ID number are easy to guess, so avoid them.

Microsoft gives characteristics of a strong password:

• It should be at least 12 characters long, but if you can make it 14 or even more, that would be better.
• Use a combination of lower and upper case letters, numbers, and special characters.
  Unique from other passwords.
• Not a name of a person, thing, place, or any word found in the dictionary.
• Easy for you to remember but difficult for others, for instance, “6MonkeysRLooking^”.

If you don’t want to memorize multiple passwords, use a secure password manager. It’ll keep them encrypted and ask for multi-factor authentication for their access.

And remember, the rule of thumb is that you should never share your PINs and passwords with anyone. Not even with family members or close friends.

2. Use Two-Factor Authentication (2FA)

Sometimes known as 2-factor verification or dual-factor authentication, 2FA is a security feature that requires users to satisfy 2 authentication factors as a way to verify that they’re who they say they are.

The essence of having the second authentication factor is to provide an additional layer of security in case the first authentication layer, which is usually the password, is compromised.

That means with the 2FA, even if someone knows your passwords, they can’t access your password because they’ll need to verify their identity the second time by providing a code sent to the phone number or email linked to your account.

3. Watch Out for Phishing Scams

The best way to protect yourself from phishing scams is to exercise caution when opening emails or text messages from unknown senders.

Also, avoid clicking on any links or attachments that you don’t trust or know the source. If any message comes claiming to be from your bank, keep in mind that your bank will never ask for sensitive information like PINs or passwords.

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4. Regularly Update Your Software and Apps

Sometimes, malware will capitalize on weaknesses found in the software you’re using. That’s why you should keep on updating your software, as updates are usually done to address these vulnerabilities.

Even better, set your device to perform automatic updates of software programs as soon as they’re available. That will mean you won’t need to do it manually all the time.

5. Secure Your Phone & PC

One of the effective ways to keep your banking information from access by hackers is to use anti-virus programs. These programs constantly monitor your device for any malicious programs and remove them before they can cause any harm.

But only work with reputable antivirus companies. Also, keep updating the antivirus software you choose, as hackers are constantly coming up with new ways to gain access.

Of course, it’s also a good idea to secure your devices. For better security, use biometric security features such as fingerprints to prevent any unpermitted access to your device.

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6. Be Cautious With Public Wi-Fi

Since public Wi-Fi makes you vulnerable to attack, just avoid logging into your bank accounts or ordering items online when connected to one. This will safeguard your information from leaking to scammers targeting to obtain information over the same network.

Even better, if you must use public Wi-Fi, make use of Virtual Private Network (VPN). It will keep hackers from intercepting your banking information when using the internet.

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7. Only Use Secure Websites for Banking

Every time you visit a page intending to perform a financial transaction, ensure it’s secure.

And how do you do that? It’s simple: Check the URL. If it starts with “https”, the page you’re visiting is safe. The “s” at the end stands for “secure”, meaning that the page has a valid security certificate.

8. Monitor Your Accounts Regularly

A study conducted by Lexington Law revealed that only 36% of consumer users check their checking accounts daily, while an additional 30% do it every week. 66% isn’t bad, but it’s not impressive.

Hence, as you ramp up your security, make it a habit to regularly monitor all your accounts. At least once or twice every week is good, or even more frequently if you do a lot of transactions.

Monitoring your accounts more frequently means you can easily detect when something is out of place and contact your bank before things get worse.

9. Logout After Transactions

Of course, it’s always recommended to log out of your online banking accounts after transacting. Most banking apps are designed to log you out after a while but to be on the safe side, it’s best to do it immediately after you’re done with transactions.

And when accessing your account on a PC often used by other people, never hit that «Remember Me» button. It saves your login credentials, so anyone accessing that computer can log into your account without the need to manually enter the username and password.

10. Dispose Of Your Voided Checks & Credit Cards Responsibly

Lastly, when disposing of your voided checks and old credit cards, don’t just throw them in the trash. Instead, shred them up into small confetti-sized pieces to prevent anyone from using them for fraudulent activities.

Conclusion

While banking fraud is on the increase, you can easily avoid becoming a victim with the tips we’ve shared in this article. Most of the tips look simple and obvious, as they’re effective in helping you keep your information secure.

And remember, it’s not a matter of choosing what tip to execute and which one to ignore. Remember that if a fraudster won’t catch you in one area, they’ll try another. So be sure to follow all the tips without exception to stay safe.