With all the news about ID Theft (just see the "Identity Theft" link on the right of this blog under "Categories" for a few posts), you may be thinking that everything online is unsecure. Fortunately, this is not true.
I ran into an article from Money magazine titled Online Banking: It's Still Safe that advises:
"Don't let all the news about data loss scare you away from the convenience of online banking."
Their reason for this statement is pretty straightforward:
"Reports of rampant Internet fraud and identity theft have led many to conclude that the convenience of online banking and shopping isn't worth the risk. That would be the wrong conclusion. The majority of ID theft occurs outside cyberspace. Banks, credit-card issuers and online retailers are rolling out more effective security features."
However, they still recommend you take the following precautions when banking online:
Sign Up for Security -- Some banks have made it harder for a crook to access your account even if he's stolen your card number or your user ID and password. In many cases these programs are optional, so be sure to opt in. Note: The longer and more complex your password, the harder it is to hack -- so mix in numbers, random letters and symbols.
Lock Down Your Browser -- Make sure you regularly download Windows updates, which often include security patches. Use current antivirus and anti-spyware programs like Norton AntiVirus 2005 and Spybot Search & Destroy (free at www.safer-networking.org). And release your credit-card info to an online retailer only if you see a locked padlock icon in the lower corner of your browser window, as well as "https" in the URL, not just "http."
Don't Take the Bait -- Phishing attacks -- in which an e-mail poses as a message from a bank or commerce site and lures you into divulging information -- duped more than 2 million people in the past year. No legitimate financial institution will ask you to supply personal info via e-mail. When in doubt, call customer service. Never click on links or pop-ups or send back personal info.
Use Credit, Not Debit -- The pay-as-you-go ethos of debit cards is good financially, but for security purposes, credit cards have the edge. They act as a buffer: If your card is misused, you won't be out actual money before you resolve the situation. Credit-card issuers also have greater legal obligations when it comes to how much they can hold you responsible for and how quickly you have to report fraud before you're on the hook.
Keep Watch -- The beauty of online accounts is that you can monitor them almost in real time. That means you can catch crooks long before a statement arrives in the mail.
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