Online Banking Security Best Practices

Study Notes

Password Protection:
- Use strong, unique passwords for online banking
- Avoid using easily guessable information (e.g., birthdate, name)
- Consider using password managers
Two-Factor Authentication (2FA):
- Adds an extra layer of security to the login process
- Examples: one-time codes sent via SMS, biometric authentication (e.g., fingerprint, face recognition)
Encryption:
- Ensures data transmitted between your device and the bank's server is protected
- Look for "https" in the URL and a lock icon in the address bar
Phishing and Social Engineering:
- Be cautious of suspicious emails, calls, or texts asking for personal information
- Verify the authenticity of requests by contacting your bank directly
Mobile Banking Apps:
- Ensure apps are downloaded from official app stores (e.g., Apple App Store, Google Play)
- Keep apps and operating systems up-to-date

Pre-Approval:
- Soft credit inquiry to determine eligibility
- Provides an estimate of loan amount and interest rate
Application:
- Submit required documents (e.g., ID, income proof, credit reports)
- Complete online application or visit a bank branch
Processing:
- Bank reviews application and verifies documents
- May request additional information or clarification
Approval:
- Loan is approved, and terms are disclosed
- Review and sign loan agreement
Disbursal:
- Loan amount is disbursed to the borrower's account

Rewards and Cashback:
- Earn points or cashback on purchases
- Redeem for statement credits, travel, or other rewards
Purchase Protection:
- Extended warranty on purchases
- Protection against theft, loss, or damage
Travel Benefits:
- Travel insurance and assistance
- Airport lounge access
Fraud Protection:
- Zero-liability policy for unauthorized transactions
- Real-time transaction monitoring
Convenience:
- Contactless payments
- Online account management and bill pay

Strong, unique passwords are essential for securing online banking accounts. Avoid predictable information such as birthdays or personal names.
Utilizing password managers can help create and manage complex passwords.
Two-Factor Authentication (2FA) enhances security by requiring additional verification, such as one-time codes via SMS or biometric methods like fingerprints or facial recognition.
Data encryption is crucial; check for "https" in URLs and a lock icon to confirm secure connections between devices and bank servers.
Beware of phishing attempts through emails, calls, or texts requesting personal information. Always verify with the bank directly if unsure.
Download mobile banking applications from official app stores only, and ensure to regularly update them as well as the device's operating systems for optimal security.

Pre-Approval: Involves a soft credit inquiry to assess eligibility and offer an estimate regarding loan amounts and interest rates.
Application: Requires submission of necessary documentation such as identification, income verification, and credit reports; applications can be completed online or at a bank branch.
Processing: The bank reviews applications meticulously, may require additional documentation or clarification for completeness.
Approval: Once a loan is sanctioned, terms will be provided, and the borrower must review and sign the loan agreement.
Disbursal: The approved loan amount is then transferred to the borrower's account.

Rewards and Cashback: Cardholders can earn points or cashback rewards on various purchases, which can be redeemed for statement credits or travel perks.
Purchase Protection: Many cards offer extended warranties on items purchased, along with coverage for theft, loss, or damage.
Travel Benefits: Credit cards often provide travel insurance, assistance, and access to airport lounges for cardholders.
Fraud Protection: Enjoy peace of mind with a zero-liability policy for unauthorized expenses and real-time monitoring of transactions for unusual activities.
Convenience: Credit cards facilitate contactless payments, simplifying transactions while offering online account management and hassle-free bill payment options.