Nine Simple Ways to Avoid Online Banking Frauds

The era of the internet has made everything much easier, including baking operations. Unlike in the past, when you needed to undergo tedious processes while engaging in traditional and manual banking operations, the digital era has changed the face of financial transactions. 

Through online, you can perform all sorts of banking transactions on your mobile phone, even opening bank accounts from the comfort of your room. Mobile bank system is now the order of the day.

You don’t need to visit the physical office of the bank for online banking. All the templates that will ease your transactions have been provided on the app. All you need to do is ensure that your phone or browsing device is connected to the internet and that you understand the basic processes involved, which are very simple.

However, as good and easy as online banking is,it has some disadvantages associated with it. Many people from all over the world are falling victim on a daily basis to the unwholesome activities that fraudsters are perpetrating through online banking. Many have lost their savings and business funds to online banking fraud.

What is Online Banking Fraud?

Simply speaking, online banking fraud is when an unknown internet fraudster succeeds in stealing the digital banking details of an individual or an organization in order to have easy access to victims’ credit cards, debit cards, or bank accounts. The fraudster would now use the information to syphon funds from the credit cards or bank accounts.

Figures of Online Banking Fraud

According to Statista, the losses suffered by -Ecommerce from online payment frauds amounted to about 41 billion U.S. dollars globally in 2022.

Also, a report by Seon’s Global Banking Fraud states that about 36% of all financial institutions in the world suffered heavy losses from card fraud in 2022. The figure represents a 26% increase compared to 2021 estimates.

The figures mean that online banking fraud is a matter you need to take very seriously, either as an individual or an organization. You worked very hard to earn your money; therefore, you need to take the necessary measures to protect it.

Why Online Banking Frauds Continue

Banks are aware of the level of damage online banking frauds are doing to their firms and reputations, so they are also coming up with stronger and more sophisticated services to protect their clients’ accounts from fraudulent activities.

The measures being taken have helped a lot in reducing online banking frauds to a large extent. However, the sophistication being used by the attackers and the ignorance of many bank customers make the online banking frauds continue.

Here are the simple steps you can take to secure your accounts from online banking fraud:

1: Strong Passwords and Constant Updating

Ensure that you create strong passwords and update them regularly. Scammers use sophisticated technology to guess billions of passwords per second. For example, using a 12-character password that has uppercase, a symbol, and a number would be very difficult to guess or crack.

2: Don’t Use the Same Password for Different Accounts

Also, don’t use the same password for different online platforms. This is very risky because you are creating easy access for hackers to break into your accounts. If they know the password for one account, they can easily gain access to other accounts.

3: Secure Your Pin

PINs are meant for you only. Under no circumstances must you reveal them to the third party. Don’t ever write them down in order to remember them. You can make use of a password manager that is secured to remember your passwords and PINs

4:Avoid Public Wi-Fi

Logging into your bank through public Wi-Fi is extremely risky because anyone can view your internet activities. As a result of this, avoid this act unless you are making use of a virtual private network (VPN).

5: Checking Bank Statements Regularly

Ensure that you check your bank statements on a regular basis so as to be sure that no unauthorized transactions are taking place. If you notice one, don’t hesitate to contact your bank immediately.

6: Public Computer:

You need to be careful whenever you are using public computers to access your online banking platforms. Always log out of sessions when you are done.

7: Public Places:

Whenever you are using your browsing device in public places, always be on the lookout for some people who might be looking at your screen.

8: Fraudulent Messages:

Ignore any text message or email address asking you to provide your account information, sign in, enter your PIN, or click a link. If you see any messages like this, it is a scam. Banks won’t send this information to you via text message. They won’t call or text you to provide information they already have. Also, ignore any phone call asking you for this information.

9: Urgent/Scary Message:

Another popular method used by scammers in online bank fraud is to send you a scary message in order to tempt you to act immediately. They would say that a suspicious activity has taken place on your account, and you need to log in immediately so that your account won’t be closed. Many have fallen victim to this system. Just know that it’s a scam. A legitimate business won’t just close your account without stating the reasons.

Author: pqrmedia
I am a professional journalists with years of experience. My aim in life is to educate people through well researched contents

Leave a Reply

Your email address will not be published. Required fields are marked *