Guide to Safe Online and Mobile Banking

The mobile and wireless market is one of the fastest growing markets in the world, and with the recent uptick of interest in tablets, it only promises to continue booming. Consumers are continuously turning to this market to take advantage of faster, more affordable and convenient ways to go about their daily activities, and the industry is beginning to see them take an active interest in online and mobile banking.

In November 2010, Forrester released a report titled “How Canadian Banking Customers Use Different Channels,” which found that one in 10 Canadians is a mobile banker, and 56 per cent of adults are now active online bankers.[1] A study released by Solutions Research Group in July 2011 found that more than 2.5 million Canadians are using a mobile banking application today.[2] When considering these percentages against Canada’s population of approximately 34.5 million people, that’s a lot of personal and financial information being exchanged virtually. By deduction, that’s also a lot of data at risk of being stolen.

Banks have worked hard to ensure the safety of their customers, and to ease fears, most banks offer multiple layers of security on their websites. But even then, users can remain vulnerable to attacks and data theft, often due to lack of knowledge and awareness of how to best protect themselves. According to Doug Cooke, Director of Sales Engineering, “Most instances of banking fraud are not due to the bank’s technology being compromised, but to people unwittingly giving out their personal banking information to criminals via phishing scams and copycat sites, or their own computers being infected with malware.”

Whether a user is banking online or on a mobile device, information security should always be top of mind. Many users are aware of the dangers that await their computers and laptops, but often overlook the very real possibility of the same viruses infecting their mobile devices. While it’s important for users to protect their computers, they need to be equally vigilant when it comes to protecting their mobile devices from malware and spyware that can easily log and track typing habits and messages

Online Banking

A solid 65 per cent of Canadian Internet users bank online every month, placing Canada at the top of comScore’s worldwide list of online banking penetration.[3] There are three types of online banking users, defined by their proficiency and knowledge of technology and online security:

Each user classification has a unique set of behaviours and inclinations that make them vulnerable to victimization. For example, the “Competent but A Little Careless” group have a lax attitude when it comes to online banking fraud either because they are unaware of security risks or because security is not a priority. “Confident but Casual” users are more likely than the younger group to use security software but are generally more complacent and feel they don’t need to learn more about protecting themselves online. The “Conservative but Cautious” group is generally the most protected group because they are more cautious of their savings, more aware of the need for Internet security and less likely to bank online.

Regardless of the type of user, there are a few safety tips to always keep in mind when banking online:

1. Always use a malware scanner like McAfee Security scanner to ensure your PC is clean. We recommend scanning your PC daily.

2. Use a reputable and comprehensive security software suite to protect your PC from viruses, spyware, adware and identity theft.

3. Check out your bank’s website for information about its online security policies to ensure they provide adequate security.

4. Never respond to bank e-mails asking for your username and password.

5. Review your financial statements and transactions upon receipt.

6. Create strong passwords that include a combination of letters, numbers and symbols. The longer the password, the harder it is to guess.

7. Safe surfing tools like McAfee SiteAdvisor indicate whether it is safe to proceed with a particular site.

8. Stay up-to-date on current and emerging threats. Visit the McAfee Facebook page[4] and blog[5] for regular updates.

In its 2011 “Mobile Money & Banking Report,” Solutions Research Group reported 38 per cent of all Canadian smartphone users have taken to banking on their mobile devices, citing ease of use and convenience as the biggest reasons for using mobile banking applications.[6] The analyst firm further predicts that consumers will eventually expect to replace their debit and credit cards with their smartphones, using them to handle payment for everyday items.[7]

As interest in mobile banking begins to rise, so do concerns of data security – 63 per cent of Canadians are ‘very concerned” about privacy, and 58 per cent are “very concerned” about security.[8] While banks have begun working to provide seamless and secure mobile banking experiences for users, the onus to protect confidential information ultimately lies with users.

So what can mobile bankers do to stay safe?

1. Connect to the mobile site via a secure wireless network – you should never send sensitive information over public connections such as those found in hotels or cafes.

2. Download your bank’s mobile application to ensure you always visit the real site, rather than a copycat site.

3. Install anti-theft software into your mobile device and back up your data regularly.

4. Set the auto-lock function on your mobile device.

5. Refrain from keeping track of sensitive data on your mobile device.

6. Install software with remote lock-and-wipe capabilities, such as those offered by McAfee WaveSecure.

Practice Safe Banking!

The ability to manage your finances anytime and anywhere affords a certain level of freedom and control, making the convenience of online and mobile banking just too great to ignore. However, as the number of people who use these services steadily increases, so does the rate at which confidential data and identities are stolen. That’s why it’s so important to have up-to-date, comprehensive security software.

Beyond that, it’s also important to be diligent and aware of the new tactics being used by cybercriminals to access your information. Educate yourself, be diligent, use a secure network only, make strong passwords, install comprehensive antivirus software and monitor your finances regularly. These will go a long way in protecting you and your information when you bank online and on your mobile phone. For a quick recap of safety tips, take a look at this short video about the dangers of phishing and how you can protect yourself.

Tags: Mobile, mobile banking, mobile security, online banking, online banking safely

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