Are You Ready for Online Banking?
By: Luke Erickson and Jim Schaffer
Why Bank Online?
Access account information Review bills, pay bills, transfer funds Apply for credit, mortgage or auto
loans Find out if a check has cleared Swiftly compare rates and prices 24 hour access to your bank accounts All without leaving your comfortable chair!
Online-Account Access
Each bank designs its own Internet website.
What you see on
your screen and how you use an online banking system differs among banks.
Sample Online Banking Screen
Making Decisions About Online Accounts
When selecting an online bank the most
convenient choice is the bank you currently use. You should also shop other online banks for prices and services.
– www.checkingfinder.com – www.savingsaccounts.com
Select the system that best meets your
needs, is easiest to use, and does so at the least cost.
Access your existing account online
Go directly to your bank’s official website.
Using Online Accounts
Online banking simplifies the banking
process, yet is very similar to using a regular checking or savings account.
Using Online Billpay
You must identify sources of deposits to the
account and decide who will be paid online. You will also have to determine the dates on which bills are due and the usual amount of the bill if it changes from month to month.
Enter Sign On Information
Search for an Electronic Payee
Manually Add a Payee
Select the Bills You Want to Pay
Enter an Amount and Schedule a Payment Date
You Can Also Schedule Repeated Payments
Disadvantages of Online Banking
Learning Curve – Like riding a bike. It’s hard at first, but it becomes very easy once you’ve learned. Bank Mergers – Site Changes Security – Fraud – Phishing – Spyware
Identity Theft Happens…
Identity theft is one of the main
concerns with online banking. ID theft:
Personal information is used to
impersonate you Social security number Credit card number Bank account number
Generic greeting, did not use my user name or actual name Misspelling, and incorrect grammar.
Created a sense of urgency
Direct link asking for my password (to imposter site)
What is the best thing to do with spam? 1. Read it and order whatever they are selling. 2. Reply to the sender and tell them to stop sending you emails. 3. Yell at it and smack your computer. 4. Forward it to the Federal Trade Commission. 5. Eat it.
Spam – Do not reply to spam email – even to remove your name.
– Forward spam email to the Federal Trade Commission (FTC): spam@uce.gov – Use an e-mail filter/firewalls to reduce spam & other risks – viruses, hackers, etc.
Secure sight?
A normal website begins with – http:// A secure website begins with: – https:// – (Notice the “s.” This means it is secure.) Another sign is to look for the padlock icon
at the bottom of your browser, like so
Choosing a password
Don’t use personal information
like a birthday or child’s name. Mix different character types
– Letters, numbers and symbols: cat$.67
The longer the better – kittycat$.67
Make it different from common English – ki&&ykat$.67
Security Tips for Consumers
DO: Make sure that you are on the correct website Make sure that you choose a password that will not easily be decoded Check monthly checking and credit card statements carefully each month Report errors or problems promptly Be sure to “Log Out” of website when finished
Security Tips for Consumers
DO NOT
Disclose personal information such as
credit card or social security numbers unless you are 100% sure who you are dealing with Have other browsers open while you are banking online Download or open files that were sent from strangers because this could infect your computer and capture sensitive information without you even knowing.
For More Information
FDIC Consumer Rights Webpage
http://www.fdic.gov/consumers/consumer/rights/index.html
What is Online Banking?
http://www.bankrate.com/brm.olbstep2.asp
Online Banking Security
http://www.bankbranchonline.com/security.html
FDIC Regulations
http://www.federalreserve.gov/regulations