A Guide To Internet Banking Security 

The internet is a worldwide phenomenon, no doubt about it. It has made the life of many people easier and more convenient. Imagine being able to do a host of financial transactions online from buying and selling products and services to paying bills and transferring money without having to leave the comfort of your home or office. Apart from individuals and entrepreneurs who have made their presence online, the banking industry has joined the bandwagon as well. 

With the advent of internet banking, customers are given the ability to do multiple financial tasks in just a few clicks of a button. While this may be fast and easy, security threats always exist causing worry among many consumers. Among the different fraudulent online activities that have been identified are the identity theft, phishing, pharming, hacking and spamming. In these criminal acts, it's often hard to identify the perpetrators. 

As providers of internet banking services, banks have the responsibility of ensuring a secure environment for customers notably as money is always involved in financial transactions. But while this is already being done, experts say that the end user or the public also have to their part and understand the risks involved in internet banking. 

Currently, there are two basic security methods used for internet banking - the PIN/TAN system and the signature based encryption system. The PIN/TAN system involves the use of a PIN as password when logging in and TAN which is a one-time password meant to authenticate transactions. On the other hand, the signature-based internet banking involves the use of digital signature and encryption technology. 

Other countermeasures available include digital certificates used against phishing and pharming and the class-3 card readers which prevent the manipulation of transactions. 

On the part of consumers, they can take several important steps to make sure they and their money are protected when transacting online. The first step is to avoid engaging in online banking or any other sensitive transactions on public computers such as internet cafes. 

Another vital step they can take is to be sure that the computers they use at home have adequate security measures such as a firewall, anti-virus scanners and anti-spam programs. 


Being vigilant when it comes to your bank accounts and transactions is also a protective measure. Be sure to check your bank statements regularly and report immediately to the bank management or customer service any transactions that you did not do. 

Additionally, avoid downloading software and email attachments you are doubtful about as these may contain viruses that can wreck havoc to your computer system. 


As for PINs (personal identification number) or passwords, never write it down as much as possible or keep it in your wallet. Use a unique combination of numbers and letters and change them on a periodic basis. 

Internet fraud worldwide has caused banks and other commercial companies to lose millions of dollars in a variety of transactions. Keep in mind that the internet is not 100 percent safe and there are always people who will find ways by hook or by crook to commit crimes online. With this reality, it's essential then that consumers understand the possible threats in internet banking.

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