Online banking can be very safe, but as you are managing your bank account(s) via your institution’s website or app, there is a unique set of security risks to be aware of, such as phishing attacks that trick users into revealing sensitive information and unauthorized access if login credentials are compromised.
The good news is that you can take precautions to keep your data secure while using online banking. Additionally, financial institutions use many security features to protect you and your money.
Discover everything you need to know about secure online banking, including the technology used to keep your data safe and what precautions you should take to keep your finances secure.
The security features that make online banking safe
Whether your provider is online-only or bricks-and-mortar, there are robust security features such as data encryption, threat detection, and automatic log-outs that banks use to keep you and your money safe while banking online.
Security features like two-factor authentication and encryption can help prevent hacking attempts at your online bank by adding extra layers of protection and safeguarding data during transmission.
Data encryption
Encryption technology is the very foundation of digital banking security. All reputable banks use advanced encryption to protect your transactions and data. This means that when you use a banking app or website, the data transmitted between your device and the institution’s server is scrambled, preventing an unauthorized third party from intercepting or reading it.
When logging in via your bank’s website, look out for the ‘HTTPS’ at the beginning of the web address in your browser. This indicates that your bank is using a type of encryption technology called Transport Layer Security (TLS) protocol. Online banking accounts with First Merchants Bank use Zelle technology, which ensures safe and secure money transfers between friends and family using advanced encryption and authentication measures.
Multi-factor authentication (MFA)
Multi-factor authentication – also known as two-factor authentication (2FA) – adds an extra layer of security when accessing your online banking account. MFA requires multiple forms of verification when you’re logging in. This could be a password, a one-time code sent to your phone, or biometric data such as fingerprints or facial recognition.
First Merchants Bank uses multi-factor authentication (MFA), including biometric login, to secure digital accounts, providing advanced protection and peace of mind—making it a trusted choice for safe and secure online banking.
Threat detection and monitoring
Banks monitor your banking behavior for suspicious or unusual activity, such as large unknown transactions from new locations or repeated failed login attempts. This may include using algorithms to help identify anomalous behaviors. If something is flagged as suspicious, your bank may be able to block a transaction, freeze your account, and notify you of the problematic activity.
Be cautious of scammers posing as your bank in security alerts. A legitimate bank alert will always come from official contact details, such as a verified email address or phone number. If you're unsure, contact your local bank directly to confirm the threat.
Automatic logout
While using a bank’s website or app, you may notice that you’re automatically logged out of your session after a period of time – particularly if you’ve been inactive for a while. This security measure reduces the risk of unauthorized access if you forget to log out.
Tips for improving your online banking security
Even though your banking provider will have plenty of security measures in place to keep your money safe, taking steps to ensure checking account security is also an essential part of staying secure when banking online. Here is how to keep your bank account safe online.
Use strong and unique passwords
Your password is your first line of defense when it comes to protecting your online banking. Ensure your password is strong by using a mix of uppercase and lowercase letters, numbers, and symbols. Your online banking password should be unique, difficult to guess, and not reused on any other online account.
Enable multi-factor authentication
Reputable banks will likely use MFA as part of their security measures. However, this can sometimes be turned off in your account or device settings.
Here is how to set up 2FA for your First Merchant bank account:
- Log in to your account via First Merchant Bank's website or app.
- Find the security or profile section in your account settings and select Enable Two-Factor Authentication.
- Pick a verification option (text, email, phone call, or authenticator app, follow the prompts, and enter the code sent to your chosen method.
Ensure that you have MFA enabled for your online banking to make the most of the security features available to you.
Log out after each session
Most online banking providers will automatically log you out of your account after a period of inactivity. However, it’s still a good idea to log out once you’ve completed your session, especially if you’ve logged in on a shared or public device. This will prevent unauthorized users from getting into your account before the automatic logout has kicked in.
A confirmation message typically appears when you log out of your online banking account, ensuring you have successfully ended your session. Always double-check this message to confirm you are securely logged out.
Avoid public Wi-Fi for banking
It’s best to avoid accessing your online bank account via public Wi-Fi or network as it’s difficult to guarantee these are 100% secure. Hackers can intercept your data, including login credentials or personal information, putting your account at risk.
Logging in on your private Wi-Fi is preferable, but if you need to access your online banking while away from home, consider using your cell data or a VPN to encrypt your connection from hackers.
Keep your apps and devices regularly updated
Out-of-date apps and software are vulnerable to security flaws and bugs, making it easier for hackers to exploit weaknesses. Checking the security of your online account regularly, including keeping your apps and devices up to date, ensures you’re protected against the latest threats. It’s also important to download apps and updates from reputable sources such as the Apple App Store, Google Play Store, or your bank’s website to further safeguard your sensitive information from malware or fake applications.
Choose a bank that prioritizes customer safety
At First Merchants Bank, we’re committed to protecting our customers and their money. We’ve implemented state-of-the-art security to protect you while banking online or using our mobile app.
You can set spending limits, freeze and unfreeze your card, and even flag suspicious account activity from the convenience of our secure online banking platform. You can even personalize your alerts and get notified for large purchases when your debit card has been used, or your balance is low. First Merchants Bank also offers a range of security resources to help customers protect their accounts and personal information.
Are online banks safe?
An online bank is an institution that operates entirely online. Your online-only bank is safe to use if it’s insured by Federal Deposit Insurance Corporation (FDIC). The FDIC provides deposit insurance to protect your money in a bank failure. Your deposits are insured up to at least $250,000 at each FDIC-insured bank, giving you the peace of mind that your funds will be safely stored with a secure internet bank.
Online banks don’t have bricks-and-mortar locations you can visit, and all your banking is conducted via a website or an app. The FDIC website has a handy tool that you can use to verify that your provider is legitimate and insured.
Check customer complaints and reviews
Before opening an account with an online bank, you can also check whether it has complaints logged on the Consumer Financial Protection Bureau (CFPB) database. In addition, you can research other customer’s experiences with the bank using the Better Business Bureau (BBB).
Staying safe while banking online with First Merchants Bank
Online banking can be a safe and convenient way to manage your finances, thanks to the robust security measures used by banking providers. However, there are precautions you can take as an online banking customer. You can significantly reduce risks and keep your accounts secure by using strong passwords, enabling multi-factor authentication, and avoiding public Wi-Fi.
Explore First Merchants Bank's online banking options and discover how we can enhance the security of your financial transactions.
