Confirm. Whether you’re selecting a traditional, “brick-and-mortar” bank that has a website, or a 100% Internet bank, you should nail down some basic information before signing up. Make sure your deposits will be federally insured (up to $100,000, the FDIC limit). Check the Better Business Bureau and the FDIC website for complaints.
Check encryption. Encryption is the process of scrambling digital data so that only authorized users can see it. Ask about your prospective bank’s practices, keeping in mind that the higher the number, the better – 128-bit algorithm encryption is the present gold standard.
Security icons. Always make sure your web transactions are taking place in a secured environment. The easiest way to check is to look for a small padlock or key icon in the lower bar of your Internet browser.
Monitor regularly. One nice feature of Internet banking is that you can check your transactions almost in real-time, as opposed to waiting for a monthly statement. Take advantage of this access – log in regularly and scan your accounts for unauthorized transactions.
You may be stunned to read this, but it’s true: Even with all the highly publicized risks surrounding Internet banking, statistics show it’s safer to bank online than with traditional manual methods.