Despite promises of increased efficiency and convenience, many customers have expressed concern over the security of electronic banking via the Internet. Originally created to facilitate the exchange of information, the Internet was not designed with tight security measures built in.
Therefore, consumers should do their homework before selecting a provider of online financial services by considering the following:
* If working with a financial institution, make sure that it is federally insured. Members of the FDIC have insurance coverage of $100,000 per account. If working with another provider, ask what kind of protection they offer against compromised security.
* Find out whether online transactions take place over the Intenet or through a private telephone line.
* Ask what security measures are in place to protect account information.
* Make sure that toll-free customer service and support is available 24 hours a day. Communication or transmission problems could impede immediate banking needs.
Once a service provider has been selected, users of online financial services have a responsibility to behave responsibly. This means choosing wise passwords that are easy to remember yet difficult to guess. Responsible behavior also precludes writing your password or codes on a piece ofpaper attached to the computer or allowing a program to automatically provide the code to the host computer at log-in.
When it comes to deciding whether or not to take advantage ofthe new online banking technology, consumers need to remember one simple fact: No bank has ever been foolproof. In spite of the mad rush by some financial institutions to establish online financial services, many others prefer to adopt a policy of watchful waiting. Arm themselves with knowledge and common sense before deciding which side to follow.