Are Banking Apps safe? Or is it safer to log on from your computer?
Banking apps are gaining popularity all over the world. They are a complementing part of the mobile banking package that most traditional banks offer nowadays, as well as the go-to instrument for fintech companies offering financial services (Revolut, Monzo, Chime). Thanks to a booming market, in America alone up to 3.5 million people are starting to use banking apps each year. And the security of these financial instruments has never been more important.
Some will go as far as to say that security, and the way people perceive it, is the main factor behind adopting banking apps or hanging around to find out how they work out in the long run.
One thing is almost certain. This could be the year that banking apps overtake traditional online banking as a way for people to gain speedy access to all their finances and financial instruments.
Online banking platforms and banking apps have another thing in common besides looking after your money. They are both targeted by hackers. Although in the US these white collar criminals risk a federal sentience if prosecuted, the financial incentive is just too good. So how do banking apps fare against these hackers security-wise?
Pretty good, actually. And certainly better than traditional online banking alternatives for the same bank. First off, the risks of phishing are considerably lower. You no longer have to log into a site and risk entering your account ID and password on a fake copy of the bank's official page. And with apps, you don’t receive emails with links to pages that try to steal your account passwords. That being said, normal online banking services are now improving their security as well, with multi-step verification upon signing in, and various alerts for switching the login devices, or alerts when suspicious amounts of money are spent. There are third-party providers like Identity Guard, Experian, or LifeLock that do a great job at keeping your financial ID safe. But apps still have the edge, as there are some out there that use your phone's complete security arsenal like fingerprints or facial recognition as part of their log in verification process.
Notifications
Many people choose mobile apps over online sites because apps can send instant, non-intrusive notifications directly to your mobile device which is usually the device you use the most every day. Whether you are working out, in a meeting or on the go, your notification will reach you faster than the emails sent by most online banking sites. For the determined, enterprising and inventive men among us, that is a great feature. And having push notifications configured into your app settings is not just practical, it also greatly improves your security as well.
Unlike mail alerts that signal you that your bank accounts are being accessed by somebody else, in-app push notifications override the activity on your phone to prioritize this important financial information.
Use trusted networks
Don’t try to conduct your banking business over the internet using the free Wi-Fi spots in your hotel lobby, or any other untrusted internet connection alternatives. That is an emergency solution at best, and one that will leave you highly vulnerable while using your phone, computer or a mobile banking app.
That being said, banking apps have a lower chance of being hacked over WI-Fi than computer accessed mobile banking sites.
When using traditional online banking, malware keylogger programs may be covertly installed on your computer when you download from a non-secure webpage. These kinds of programs will run in the background and record the keystrokes you use when you enter your user and password on a banking site. They will then automatically send this information to the person that developed or used this program, leaving you exposed and unaware.
Things to avoid when using banking apps
- Don’t use banking apps on phones that have modified operating systems. Once you have rooted the original operating system of the device you are more likely to install apps that have not been approved by app stores. Of course, you do. That is why you rooted the phone in the first place. But that is awful news for banking apps, as any of those apps you install can take advantage of the decrease in security your phone now employs and install spy malware. Do update your antivirus while you are at it and make sure you have multiple security for accessing your phone's home screen.
- Don’t forget to sign up for fraud alerts. As we mentioned notifications, especially push ones, go a long way to helping you protect sensitive information from malicious parties. But they can not help you if you don’t activate them. Go for all the notification your banking app employs when it comes to fraud and you will make life next to impossible for would-be banking app John Dillingers out there.
- Double-check bank representatives. No bank will ever call you and ask you to download a specific banking app. Maybe they will try it as a marketing campaign, but they will never insist on your compliance. Fraud minded criminals will. The Reserve Bank of India has recently warned its customers not to download remote control apps like AnyDesk as it may reportedly lead to fraudsters cleaning out your back account. While the app does ask for permissions it can gain full access to your phone and be a tool for remote banking transactions.
It seems that to be more persuasive, criminals will call you and pose as bank representatives, asking you to try this app or similar ones. The best advice is that when in doubt don’t download and never give any information over the phone if someone supposedly from your bank calls you. If in doubt, call your bank using the number advertised and check directly with them.
Before downloading any app, whether it's a banking app or Fornite Mobile, you should always check reviews, recommendations, and security details. If you are still unsure call the bank and ask if the app is a secure one.
-Don’t lose your phone. If that happens, contact the mobile network operator and the bank immediately. The mobile network operator can block your phone and thus ensure it will remain useless. Alternatively, there are apps and sites that will remotely erase all data on your phone, but they may prove less direct. The bank can block your account until you get another device while also helping you change your login credentials, so your money stays nice and safe.
- Don’t forget to download updates to mobile banking apps and others as soon as they are available to avoid flaws being exploited by fraudsters. This one is a pickle. I know, I hate updates on programs that appear to be working fine for me, but I learned that security-wise, it is a bad thing to hate. Programmers may update the security protocols of your apps to deal with specific newly arrived threats, so not downloading mobile banking app updates could prove to be a very bad call.
Banking apps have their flaws, but so does every other method for remotely using your bank account. Unlike mobile banking sites, apps do offer more speed, functionality, personalization, and security. These make them better suited to the lifestyle of any modern gentleman. And if the last couple of years are a good example, it is safe to say they will soon come to dominate the mobile banking industry.
Some will go as far as to say that security, and the way people perceive it, is the main factor behind adopting banking apps or hanging around to find out how they work out in the long run.
One thing is almost certain. This could be the year that banking apps overtake traditional online banking as a way for people to gain speedy access to all their finances and financial instruments.
But are banking apps safe or are you better off with traditional mobile sites for now?
Stop phishingOnline banking platforms and banking apps have another thing in common besides looking after your money. They are both targeted by hackers. Although in the US these white collar criminals risk a federal sentience if prosecuted, the financial incentive is just too good. So how do banking apps fare against these hackers security-wise?
Pretty good, actually. And certainly better than traditional online banking alternatives for the same bank. First off, the risks of phishing are considerably lower. You no longer have to log into a site and risk entering your account ID and password on a fake copy of the bank's official page. And with apps, you don’t receive emails with links to pages that try to steal your account passwords. That being said, normal online banking services are now improving their security as well, with multi-step verification upon signing in, and various alerts for switching the login devices, or alerts when suspicious amounts of money are spent. There are third-party providers like Identity Guard, Experian, or LifeLock that do a great job at keeping your financial ID safe. But apps still have the edge, as there are some out there that use your phone's complete security arsenal like fingerprints or facial recognition as part of their log in verification process.
Notifications
Many people choose mobile apps over online sites because apps can send instant, non-intrusive notifications directly to your mobile device which is usually the device you use the most every day. Whether you are working out, in a meeting or on the go, your notification will reach you faster than the emails sent by most online banking sites. For the determined, enterprising and inventive men among us, that is a great feature. And having push notifications configured into your app settings is not just practical, it also greatly improves your security as well.
Unlike mail alerts that signal you that your bank accounts are being accessed by somebody else, in-app push notifications override the activity on your phone to prioritize this important financial information.
Use trusted networks
Don’t try to conduct your banking business over the internet using the free Wi-Fi spots in your hotel lobby, or any other untrusted internet connection alternatives. That is an emergency solution at best, and one that will leave you highly vulnerable while using your phone, computer or a mobile banking app.
That being said, banking apps have a lower chance of being hacked over WI-Fi than computer accessed mobile banking sites.
When using traditional online banking, malware keylogger programs may be covertly installed on your computer when you download from a non-secure webpage. These kinds of programs will run in the background and record the keystrokes you use when you enter your user and password on a banking site. They will then automatically send this information to the person that developed or used this program, leaving you exposed and unaware.
Things to avoid when using banking apps
- Don’t use banking apps on phones that have modified operating systems. Once you have rooted the original operating system of the device you are more likely to install apps that have not been approved by app stores. Of course, you do. That is why you rooted the phone in the first place. But that is awful news for banking apps, as any of those apps you install can take advantage of the decrease in security your phone now employs and install spy malware. Do update your antivirus while you are at it and make sure you have multiple security for accessing your phone's home screen.
- Don’t forget to sign up for fraud alerts. As we mentioned notifications, especially push ones, go a long way to helping you protect sensitive information from malicious parties. But they can not help you if you don’t activate them. Go for all the notification your banking app employs when it comes to fraud and you will make life next to impossible for would-be banking app John Dillingers out there.
- Double-check bank representatives. No bank will ever call you and ask you to download a specific banking app. Maybe they will try it as a marketing campaign, but they will never insist on your compliance. Fraud minded criminals will. The Reserve Bank of India has recently warned its customers not to download remote control apps like AnyDesk as it may reportedly lead to fraudsters cleaning out your back account. While the app does ask for permissions it can gain full access to your phone and be a tool for remote banking transactions.
It seems that to be more persuasive, criminals will call you and pose as bank representatives, asking you to try this app or similar ones. The best advice is that when in doubt don’t download and never give any information over the phone if someone supposedly from your bank calls you. If in doubt, call your bank using the number advertised and check directly with them.
Before downloading any app, whether it's a banking app or Fornite Mobile, you should always check reviews, recommendations, and security details. If you are still unsure call the bank and ask if the app is a secure one.
-Don’t lose your phone. If that happens, contact the mobile network operator and the bank immediately. The mobile network operator can block your phone and thus ensure it will remain useless. Alternatively, there are apps and sites that will remotely erase all data on your phone, but they may prove less direct. The bank can block your account until you get another device while also helping you change your login credentials, so your money stays nice and safe.
- Don’t forget to download updates to mobile banking apps and others as soon as they are available to avoid flaws being exploited by fraudsters. This one is a pickle. I know, I hate updates on programs that appear to be working fine for me, but I learned that security-wise, it is a bad thing to hate. Programmers may update the security protocols of your apps to deal with specific newly arrived threats, so not downloading mobile banking app updates could prove to be a very bad call.
Banking apps have their flaws, but so does every other method for remotely using your bank account. Unlike mobile banking sites, apps do offer more speed, functionality, personalization, and security. These make them better suited to the lifestyle of any modern gentleman. And if the last couple of years are a good example, it is safe to say they will soon come to dominate the mobile banking industry.
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Loves to play with new ideas, binge writing, traveling and gourmet coffee. Professional writer of non fiction with over 8 years experience in putting words to paper. Fan of iconic movies, sports, The Arctic Monkeys and city breaks. Yes, he knows how good his coffee is.