Internet Bank or Online banking

Internet bank or Online banking is getting very popular to the people in recent few years. There are lots of reasons to bank online - you can track your finances by a internet banking service 24 hours a day and take decisions instantly.

Most online services let you check balances, transfer funds, pay bills and buy financial products such as insurance. You can also set up direct debits and standing orders, amend overdrafts or apply for a loan by internet bank or online banking. It's also possible to see all your old statements. Many online banks, being at the forefront of personal finance, offer offset or current account mortgages. These let you trade off the balance in your savings or current account against your borrowings, which can mean cutting the interest on your mortgage. Because online services are cheaper to run, banks also tend to offer a higher rate of interest. Although this isn't always the case. Some of the larger, traditional banks offer online accounts with poor rates of interst. Also, be wary of online savings accounts that pay suspiciously high rates of interest. They may do this to attract new customers and then drop the rate. If you are vigilant and are willing to move your money around you can take advantage of some of these 'loss-leading' deals and then jump ship.

Online Safety

The safety of websites remains an issue. The industry spends milions of pounds each year in a bid to make systems secure. But the harder they try, the harder the hackers try. On rare occasions, even customers have innocently discovered ways of looking at other people's accounts. Either way, virtually banks guarantee to refund any money lost as a result of online fraud. That said, the experience can be traumatic and is nearly always inconvenient as it may take a bank weeks or months for the bank to refund your money. So-called 'phishing' has also caused concern. People receive an official-looking e-mail supposedly from your bank with a link to a bogus website. Customers who click on the link and log in, inadvertently give away their username and password. Phishing e-mails (hackers slang for fishing for bank details) will not cost you a penny if you never hand out your password and details. Remember that your bank would never ask for these via email. Click here formore details about internet scam.

Online security

Protection through single password authentication, as is the case in most secure Internet shopping sites, is not considered secure enough for personal online banking applications in some countries. Online banking user interfaces are secure sites (generally employing the https protocol) and traffic of all information - including the password - is encrypted, making it next to impossible for a third party to obtain or modify information after it is sent. However, encryption alone does not rule out the possibility of hackers gaining access to vulnerable home PCs and intercepting the password as it is typed in (keystroke logging). There is also the danger of password cracking and physical theft of passwords written down by careless users. Many online banking services therefore impose a second layer of security. Strategies vary, but a common method is the use of transaction numbers, or TANs, which are essentially single use passwords. Another strategy is the use of two passwords, only random parts of which are entered at the start of every online banking session. This is however slightly less secure than the TAN alternative and more inconvenient for the user. A third option is providing customers with security token devices capable of generating single use passwords unique to the customer's token (this is called two-factor authentication or 2FA). Another option is using digital certificates, which digitally sign or authenticate the transactions, by linking them to the physical device (e.g. computer, mobile phone, etc). Other banks have responded not with security tokens or digital certificates, but by setting up a combination of controls that recognize a customer's computer, ask additional challenge questions for risky behavior, and monitor for fraudulent behavior.

Make sure you understand this steps if you bank online

Know who you are dealing with
Always access Internet banking by typing the bank's address into your web browser. Never go to a website from a link in an email and enter personal details. If in doubt, contact the bank separately on an advertised number.

Keep passwords and PINs safe
Always be wary of unsolicited emails or calls asking you to disclose any personal details or card numbers. Keep this information secret. Be wary of disclosing any personal information to someone you don't know. Your bank and the police would never contact you to ask you to disclose PINs or all your password information.

Keep hold of your cash!
Don't be conned by convincing emails offering you the chance to make some easy money. If it looks too good to be true, it probably is! Be especially wary of unsolicited emails from outside the UK - it will be much harder to prove they are who they say they are.

Keep your PC secure
Use up-to-date anti-virus software and a personal firewall and, if your computer uses the Microsoft Windows operating system, keep it updated from the Microsoft website. Be extra careful if using Internet cafes or any PC which is not your own and over which you have no control.

Check your bank's website
If in doubt, a good place to get help and guidance on how to stay safe online is your bank's website. Check regularly for specific information and guidance on protecting your PC and yourself online.

Check your statement
If you notice anything irregular on your account contact your bank immediately.

Additional protective measures
• Always learn your password and other security information and destroy the notice as soon as you receive it.
• Never write down or record your password or other security information unless it is well disguised.
• Make sure that you always follow your bank's terms and conditions.
• Always take reasonable steps to keep your password and other security information secret at all times - never reveal it to family or friends.
• Do not use the same password that you use for online banking at any non-banking sites.
• If you change your password, choose one which cannot easily be guessed.
• Never give your account details or security information to anyone. If phoning the bank, be aware of what information they will ask you: you will not normally be asked for your password in full.
• Ensure that there is a locked padlock or unbroken key in the bottom right of your browser window before accessing the bank site. The beginning of the bank's Internet address will change from 'http' to 'https' when a secure connection is made.
• Never leave your computer unattended when logged in to Internet banking.
• Ensure that you log-out properly when you have finished banking online.