So, is Mobile Banking Safer than Online Banking? Whether you choose mobile banking or online banking, you can be confident that your bank has invested in the security of these services. However, mobile banking is a little safer when it comes to security, mainly because this type of banking does not store any data.
“Banking apps are designed to be secure but that doesn't mean that human error or fraudsters aren't savvy enough to get through them. “The biggest vulnerability comes from the user's device, which is why implementing things like biometric security checks is key, and not just for banking but all uses of money.
Both mobile banking and net banking can be useful, depending on your needs. Mobile banking apps can be used for tasks such as making transactions, transferring funds, and checking transaction history, while net banking is suitable for more advanced requirements.
The advantages of mobile banking include 24/7 access to funds, convenient way of paying bills, taxes, and loans. The top disadvantage of mobile banking is potential security risks, tech issues, and extra charges for services.
A bank app may be safer than your bank's website -- but you'll still need to take security precautions. Dashia is a staff writer for CNET Money who covers all angles of personal finance, including credit cards and banking.
Features and Benefits of Mobile Banking
Allows you to view all your transactions clearly in one place so that you can keep a track of your finances. There is no need to get your bank statements updated physically with internet banking. You can get offers, discounts on purchases and transactions.
Your access to Internet banking services can be hindered in the absence of a stable internet connection. It can also be affected when bank servers are down.
Federally backed online bank accounts are safe to use and are insured just the same as brick-and-mortar banks. Still, it's always good to have some caution around protecting your personal information.
Hackers use a type of malware called “keyloggers” that record all the information you type into your phone — including bank accounts and passwords. If you download an app that's infected with a keylogger, hackers will be able to break into your banking app.
Is Mobile Banking Safe on iPhone? Banking apps on iOS tend to be secure thanks to the rigorous standards of the App Store. The most vulnerable iOS systems are those that have been jailbroken.
Is 4G safe? 4G is safe because it uses encryption to secure your internet connection. Encryption technology scrambles your data, so it's unreadable to anyone without the decryption key. In case of a data breach, a 4G connection protects all your private information.
It can be used to make the utility bill payments, block the ATM card, fund transfer, open fixed deposit/recurring deposit etc. Also, account holders can use phone banking facility on any phone. It is not essential to have a smartphone to use phone banking services, unlike mobile banking.
With mobile banking, you're able to check your balance, track your spending, review your account history, locate ATMs, deposit checks, transfer funds, pay bills and receive text message notifications or alerts about your account.
Due to the open nature of the Internet, all web-based services such as YAB's Online Banking are inherently subject to risks such as online theft of your User ID/UserName, Password, virus attacks, hacking, unauthorized access and fraudulent transactions.
The Bottom Line
Trading your brick-and-mortar bank for an online checking account has pros and cons. The pros include higher yields, lower fees, and high-tech features that help with account maintenance and budgeting. The cons include more difficult access to customer service, as well as online security concerns.
The lack of overhead gives internet banks advantages over traditional banks, including fewer or lower fees and accounts with higher APYs. Internet banks lack personal relationships, no proprietary ATMs, and more limited services.
Incorrect transaction processing. Compromises in the integrity of data, data privacy, and confidentiality. Unauthorized access to the bank's systems.
You can talk to your bank to confirm your coverage. To look up your account's FDIC protection, visit the Electronic Deposit Insurance Estimator or call the FDIC Call Center at (877) 275-3342 (877-ASK-FDIC). For the hearing impaired, call (800) 877-8339.
First let's clear up one myth - giving out your bank account number and BSB is fine. "There is no issue in giving out your BSB/account details as it's only possible to deposit funds rather than withdraw funds," an ING spokesperson told Money. "If an unauthorised debit occurs then the debiting institution is liable."