Security In Online Banking

Using a bank’s secure website to carry out transactions, payments and other bank dealings is referred to as Online Banking. Online Banking is a new feature that is now being accepted by more and more people worldwide because of its flexibility and convenience when compared to traditional banking at a local banking company. For the people who want to access their bank accounts, account information and other features without time or location restrictions, online banking has been a boon. Most of the people, who do not use online banking, do not do so because they have concerns about the security of their accounts while banking online.

Any online system which relies only on the usage of password authentication, like an Internet retail website, is not secure enough for the type of business and information security required in an online banking system. An online banking system need to be far more sophisticated than this. Online Banking websites and ports should be secure sites, using the ‘https’ prescript that is encrypted. The process encryption is used to convert plain text into cipher or unreadable text. It may be become very difficult for a hacker trying to access personal information in a home computer by intercepting a password as it is entered on the site, to access the information if the proper kind of encryption is used by an online banking system.

There is a second method employed by most banks to protect their customers and ensure their security. Transaction numbers or TANS are used by most banks to provide security to the clients. TANS are the passwords that can be utilized for a single session only and they expire after the session is over. There are several other methods that are used to ensure security, these include the use of chip cards that are unique to each customer, use of two passwords that require  entering only random parts and usage of digital certificates. Single password protection remains the most commonly used security method in the United States of America.

Fraud is another online banking concern that most of the people have. It is believed by some people that the Online Banking System is not secure enough to protect an individual’s personal information from being used in a fraudulent situation. As a matter of fact identity theft, credit card fraud and signature forgeries are more common than online bank fraud. Bank transactions are easily traceable and the punishments involved for these crimes are quite severe.

Inspite of the concerns regarding the safety of online banking more and more people are being drawn towards the features offered by online banking. With the availability of a number of features such as electronic bill payment, instant access to account statements, more people are being attracted to online banking and online banking has become a popular way for the people to maintain their accounts without the restraints of traditional banking hours.