How does your Bank (Not) Protect Your Personal Data and Business Secrets?
Are you a fan of digital banking? You probably prefer it because of its convenience. With an online or mobile bank, you can easily manage your finances. The technology reduces the hassle of physically going to a bank to pay your bills or make deposits and transfers. Rather, digital banking allows you to do all these regardless of location and time. However, how safe are the banks? Could they put your bank secrets and personal data at risk? Please read on to find out.
How Your Bank Protects Your Personal Data and Business Secrets
Online and mobile banking are efficient, fast, and convenient. You can open an account for your business with Bank pro. However, just like any other online bank, it faces security concerns. Cybercriminals attack in various ways.
Thankfully, banks have put in place strategies that ensure your business secrets or personal information are safe to a greater extent. The main objective is to keep your sensitive information secured from unauthorized access. The following are some of the data security measures and practices banks commonly use;
Multi-factor Authentication
Authentication is a form of confirming the identity of an individual before the transaction proceeds. Therefore, when a customer logs in to the system, he or she must undergo this process. With the increasing security concerns, online banks perform a two-factor or even a multi-factor authentication to ascertain that you are indeed the person you claim to be. This way, the bank is sure of your identity before you carry out any bank transfer or payment transaction.
The multi-factor authentication may come in different forms. Unlike the previous PIN and passwords, banks now need extra information from you for verification. They may send you a code on a registered device. Alternatively, they may need you to answer a question(s) that you are the only one who knows the answer(s).
Read: What is Privacy Compliance? The Ultimate Guide
It is thus, not surprising that banks have already adopted biometrics for authentication. Apart from fingerprints in online banking, you may be required to use facial or voice recognition. These are simple security methods that are complex for cybercriminals to copy.
Alerts and Notifications
Banks use a variety of channels to send alerts and notifications for continuous communications with you as the customer. If they have a system upgrade or an introduction of a new technology or procedure into their system, they will let you know.
Moreover, if there is suspicious activity taking place in your account, the bank will alert you. This is a great way of ensuring your data is safe.
Audit Trails
These are important in ensuring your data security as they record each event that takes place within the system. Therefore, whenever a customer carries out an online banking transaction, the time and details about the same are recorded. Notably, the banks have a daily backup system for these important recordings.
Confidentiality of your Credentials
Online banks keep your credentials such as passwords and usernames confidential and do not share them with third parties. Remember, as the banks do their part to keep your data secure by maintaining this confidentiality, you too should do the same.
Read: Omni-Channel Banking Experience
Use of Anti-Virus and Anti-Malware Programs
Banks go to the extent of having such programs embedded in their system as a means of detecting and preventing malicious software or one that may be containing viruses. The good news is that the banks update their programs to ensure they have the best strategy to weed off anything that jeopardizes personal data security.
Automatic Logouts
When you are done with a transaction, most online banks will automatically log you out of the session. They do this after they notice you are inactive for a while. The goal is to keep your online account from unauthorized access.
How Your Bank Does Not Protect Your Personal Data and Business Secrets
Unfortunately, banks do not protect your information and business secrets at all times. At some point, it may feel like your bank is not doing enough to keep your information safe. Alternatively, your bank may perform an activity that may allow a sophisticated hacker to access your personal information. Such include;
Lack of Advanced Technologies
Cybercriminals only need personal information to ensure your account is all drained. They use very smart approaches, employing the latest and most advanced techniques to ensure they succeed in getting that access to your information before they go ahead and commit the crimes.
Therefore, if your bank has not installed a proper digital security system that can detect and prevent such fraud, your information and business secrets are not safe. Any slight step behind the attackers leaves you at risk of falling victim to their schemes. In some cases, your bank may not have strategies to optimize its security for fraud prevention.
No Connection between Automated Systems and Human Interactions
The fact that it is an online bank does not mean it shouldn’t incorporate other human interactions into the systems. A well-blended automated security system with human interactions goes a long way in protecting customers.
Therefore, if your bank does not have hard data storage in physical computers but solely relies on cloud storage, your information may be unprotected. On the contrary, the bank should ensure that the security measures are both automated and incorporate human interactions too.
Read: How to Use Banking Partners for Buy-Now-Pay Later Offerings
Disclosing Sensitive Information
This is something that a bank should not be found guilty of. However, there are several lawsuits against banks that have disclosed their customer’s personal information to third parties, putting them at a risk. You may lose your money, experience pain, or get inconvenienced. Therefore, if your bank does not mind sharing your personal information with others, it surely isn’t doing enough to keep you or your business protected.
What Should You Do?
Online banks offer great convenience. Thankfully, banks have security measures and strategies to ensure your personal data and business secrets are protected. Unfortunately, your bank may put you at risk of a security breach in some cases. So, should you have an online bank account or not? If this is a thought you are entertaining, we recommend you check the reviews of a bank first before opening an account with them. You can find major banks that work around the clock to ensure your information and business secrets are safe.
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