Are banking apps a security risk?
As long as you're taking steps to protect your data -- such as avoiding public Wi-Fi and enabling multifactor authentication -- using a banking app to manage your money is safe.
Risks of mobile banking
It's difficult to find software or technology that is entirely risk-free, and that holds true for mobile banking apps. The 2021 Nokia Threat Intelligence Report indicated that 50% of banking malware is targeted toward Android users, because Androids run on a fully open-source operating system.
In most cases, cybercriminals are lured by the potential financial gain offered by mobile banking apps. To exploit user data from mobile banking, they often employ phishing attacks through email or text messages to trick users into revealing their login credentials.
Online banking presents several other security concerns, even when the bank is real. Phishing or gathering personal information by posing as your bank or credit union is a significant problem as are malware and viruses.
- Risk of hacking and identity theft.
- Tech issues or bugs can affect usability.
- Some mobile banking apps charge fees.
- Features aren't the same for all apps.
Mobile banking or any other activity that exposes your sensitive data should never be done on public Wi-Fi. If a hacker is monitoring the public Wi-Fi or hotspot you are using, they could potentially intercept the data being transferred to and from your phone and use it to access your banking account.
Are banking apps safer than Internet banking? Banking apps can be safer than using an online banking portal due to biometric-enabled login options for your phone and the app itself. Your face, your fingerprint and your phone are a lot harder to hack than your username and password.
You don't know who has access to the network traffic and whether they can view the data you send. For better online banking security, Marchini advises using your cellular network.
Install an effective mobile anti-malware / anti-virus software on your smartphone and keep it updated. Be aware of shoulder surfers. Be extra careful while typing confidential information such as your account details and password on your mobile in public places. Do not download unwanted apps on your mobile.
- Customer service lacks personal touch.
- Not an option for those lacking access to the internet.
- ATM options may be limited.
- Greater due diligence required to vet the bank.
What is the biggest danger when online banking?
The biggest risk of online banks is that someone will access your savings or checking account and steal your information and money. This typically happens when your account is hacked by cybercriminals who get your username and password. However, these risks are not limited to banks that operate exclusively online.
Cons of online banks
Customer service can be virtual and impersonal. You are more likely to incur ATM fees if the online bank has no ATM network or is part of a small network. You can't deposit cash unless the bank is linked to ATMs that accept cash. The number of products tends to be more limited at online banks.
| Bank | Forbes Advisor Rating | Learn More |
|---|---|---|
| Chase Bank | 5.0 | Learn More Read Our Full Review |
| Bank of America | 4.2 | |
| Wells Fargo Bank | 4.0 | Learn More Read Our Full Review |
| Citi® | 4.0 |
6. Mobile apps are just as secure. It's hard to generalize about whether apps or websites offer greater security. Security issues often stem from server (“backend”) vulnerabilities, as in the cases of data breaches, rather than browsers or apps.
If you are changing your device then delete the app from it and reinstall it on your new device. This will not affect your account, your log on details or your password. They will remain the same.
If you are using passcodes for banking apps, make sure they are strong and unique. You can also now turn on more theft safeguards in your iPhone if you have iOS 17.3 installed. To do so, go to Settings, then "Face ID and Passcode" or "Touch ID and Passcode," then turn on "Stolen Device Protection."
Here are some of the main warning signs that you've been hacked: You get signed out of your online accounts (social media, email, online banking, etc.), or you try to log in and discover your passwords don't work anymore.
If scammers have access to your phone number, they could potentially use it to hack into your online accounts — including your email, social media, and even your bank account.
If a fraudster knows your routing number they can easily tell which financial institution your funds are at, putting you at risk of phishing attempts. If a criminal has both your routing number and account number they can potentially steal money from your account through fraudulent ACH transfers and payments.
Online banks typically offer the best rates and lowest fees of any bank type. Online banks don't offer branches and assume you're proficient with navigating online apps and websites. Read on to compare the pros and cons of online banks. That way, you can choose the right type of bank with confidence.
Why is mobile banking considered riskier than online?
Expert-Verified Answer
Mobile banking is considered riskier than online banking because of the following facts: Mobile devices are more likely to have malware loaded on them. (Malware specifically targeting mobile devices has become a very real and prominent threat). Mobile devices are more likely to be lost or stolen.
A dedicated Windows PC is good choice for your banking needs. By the way, that is not only my opinion, but European and US banking authorities have repeatedly suggested using a dedicated banking PC as well. Tablets and smartphones run on operating systems that are a generation younger and better than your normal PC.
We recommend that you use the most current version of one of the following browsers: Microsoft Edge, Google Chrome, Safari, or Mozilla Firefox. If you elect not to upgrade your browser, your experience may not be optimal and your browser may not support the latest standards for safe and secure transactions.
Is home WiFi safe for internet banking? Yes, if your home WiFi connection has been set up by a professional team and features the most up-to-date security, then you will be protected when banking online. However, outdated hardware, software and applications can leave you vulnerable to hackers.
- Use a strong password that avoids common words, numbers or keyboard patterns (such as 'password' or '123456'). ...
- Don't reuse passwords for different accounts.
- Never share your full password or PIN number.
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