Overview
Banks remain central to the US economy, but online banking introduces new risks alongside its convenience. This article explores how entrepreneurs can safeguard accounts by choosing reputable banks, enabling multifactor authentication, avoiding scams, and maintaining vigilance. With proper precautions, online banking offers businesses safe, efficient access to financial services and growth opportunities.
Introduction
Banks are essential financial institutions that form the backbone of the US economy, as they enable individuals and businesses to save money, conduct transactions safely, and obtain loans to meet their daily needs.
There are many banks in the US, and consumers are free to choose any one they want to save their money in. Americans consider several factors when choosing a bank, including interest rates, transaction fees, customer service, reputation, convenience, and security.
As the use of technology and the internet has grown more pervasive throughout the country, online banking has become mainstream, but there are questions about its safety. Online banking allows businesses to open a bank account, deposit money, and perform transactions like they would with a regular bank, without their owners visiting a physical bank branch.
This form of banking is efficient and convenient, which makes it attractive. However, its safety depends on the specific platform’s cybersecurity measures, user vigilance, and the customer’s understanding of the risks of online banking.
Security Measures Online Banking Users Should Take
Online banks in the US are generally built to be safe, since they have to follow regulations set forth by relevant agencies before they can be issued a license to operate. Some online banks, like Farmers Bank, go the extra mile to ensure their customers’ money and personal information are protected from cybercriminals. Nevertheless, it is wise for entrepreneurs who use online banks to adopt the following security measures to keep their accounts safe:
Never share account login credentials.
Online banks have applications that business owners can install on their phones to view their bank balance, transfer money, and access a host of banking features. However, users should never share their account login credentials with anyone, so nobody can log into their account without their consent. Sometimes people may share this information with family members that they trust, but that trusted party may inadvertently share said information with an untrustworthy person who will misuse it.
Avoid purchases on a sketchy website
To make business purchases online, entrepreneurs have to input their business card information on the website where they are shopping. However, they should refrain from buying items from sketchy and untrustworthy websites, since fraudsters may be on the backend waiting to steal their card information and use it to commit fraud.
Enable multifactor authentication
Multifactor authentication requires that people verify that they are the rightful owners of an account before they can log in. This could mean that they enter a one-time password sent as a text to their phone number or email address whenever they attempt to log into the application. This prevents people who fraudulently obtain customer login credentials from accessing their accounts.
Be aware of scams
Fraudsters use several tricks, like phishing and social engineering tactic,s to make people divulge their bank login information. Entrepreneurs have to be aware of these tricks to spot them and avoid becoming a fraud victim.
Endnote
Online banking is generally safe for businesses, and it gives them the convenience of quickly opening accounts and accessing the features of a regular bank. However, entrepreneurs should pick a bank with a good reputation, like Farmers Bank, to ensure that their money stays safe and they can access it whenever they want. They should also follow the security measures outlined above to prevent security breaches that their online bank has little control over.
