Protecting Yourself from Online Banking Fraud

For the past several years, there has been a lot of focus on identity theft. While very serious and very damaging, there are many other ways that the "bad guys" can wreck havoc on your life and your finances. Services like the ones available from the three major credit reporting agencies and companies like Lifelok offer protection against other people establishing credit or identities using your Social Security Number. These services are very valuable and worthwhile, but true identity theft is not the only threat out there in these digital times.

Many cyber criminals, also referred to as fraudsters, don't want to steal your identity in the traditional sense. They don't want to get a credit card or a mortgage or a checking account in your name and live their life off of your good credit history. They simply want to take your money and move on to the next victim. While most companies that do business on the Internet, including financial institutions, are very diligent in providing online protection for their customers, the first line of defense is knowledge about what you, the end-user, can do to protect yourself - an electronic way of "Looking out for Number One". The two most prevalent types of fraud, "keylogging" and "phishing", can occur from viruses on your computer. In both cases, the end result is the fraudster capturing your login credentials.

Keystroke Logging or Keylogging

Keylogging is a method by which fraudsters record your actual keystrokes and mouse clicks. Keyloggers are "trojan" software programs that target your computer's operating system (Windows, MAC OS, etc.) and are "installed" via a virus. These can be particularly dangerous because the fraudster has captured your user ID and password, account number, Social Security Number - basically anything you type as you type it! If you are like a lot of other users who have the same ID and PIN/Password for many different online accounts, you've essentially granted the fraudster access to any company with whom you conduct business. After all, they've got your login credentials so they appear to be a valid user.

Here are a couple of ways you can prevent yourself from being a victim of keystroke logging:

a) Use Antivirus Software: This is the single most important thing you can do to protect your computer from viruses. There are many on the market today - some cost money while others are free. Before installing any antivirus software, make sure it is being offered by a reputable company and do research on the company and its product before installing.

b) Keep your operating system up to date with the latest security patches. You can consult the documentation that came with your computer/operating system or contact the company who created your operating system (Windows - Microsoft, MAC - Apple, etc) in order to figure out the best way to do this.

Phishing

Phishing is a scam where Internet fraudsters request personal information from users online. These requests are most commonly in the form of an email from an organization with which you may or may not do business. In many cases, the email has been made to look exactly like a legitimate organization's email would appear complete with company logos and other convincing information. The email usually states that the companyneeds you to update your personal information or that your account is about to become inactive, all in an effort to get you to click the link to a site that only looks like the real thing. If you click on the link to go to the phony web site and enter all of your information, you've just been the victim of a phishing attack. The fraudsters have just captured all the necessary information to access your accounts online. No reputable business will ever amail you requesting that you update your personal information, including account numbers, system passwords or Social Security Numbers via a link to their website!

Follow these guidelines to protect yourself from phishing scams:

a) Never click on a link from a business requesting that you provide them with personal information.

b) Pay close attention to the URL (internet address) behind the link. Often in phishing attempts, if you hover the cursor (without clicking) over the link the fraudsters want you to click on, the true URL will appear and it will have nothing to do with the actual company they claim to be.

c) If your Financial Institution uses watermarks or personal images on the login screen, DO NOT login unless you see the correct image on your screen.

d) Report any phishing attempts to your Financial Institution.

If you're unsure the Internet session is valid, close it and open a new Internet session and manually key in the business' web address instead of clicking the link in the e-mail. If the business genuinely needs information from you, they have you login to your online account to see the request. In most cases, you'll just be greeted with a message indicating that the business will never email you requesting personal information.

What should I do to protect myself from fraud?

Besides following the tips mentioned above, there are other things you should do to safeguard your personal and financial information.

a) Change your password(s) often. If a fraudster does have your login credentials, this will limit the amount of time the password will gain access to your personal information. If you think your password has been compromised, change it immediately to be safe!

b) Don't use the same ID and PIN/Password for every online account you have.

c) Never disclose your login credentials to other people or companies.

d) Do not store your ID and password information where others could gain access to it. It is best not to write the information down at all.

e) Do business with a financial institution that offers two-factor authentication for accessing your information online (like we do).

f) If accessing information via a wireless network, ensure that the network is secure. Accessing sensitive information (or any website) over a non-secure network simply leaves the door open for criminals. Even if you aren't visiting a site where you enter an ID and password, you are still leaving your computer exposed to possible threats. Possible examples of unsecure networks might be public wireless networks found in libraries or coffee shops. If you have installed a wireless network at home, check with your vendor to make sure it is secure. You might notice that other wireless networks may appear on your computer besides the secure one you are using. DO NOT access the internet on a network you do not know to be secure. In general, accessing the internet over public wireless networks could open the door to criminals wanting to access your information!

While nothing is foolproof, and new viruses and scams are being developed every day, following these guidelines as well as having a general awareness of the threats that are out there enables you to bank online with more peace of mind and less risk of being a victim of fraud.