Cash News
Using your bank’s mobile app to monitor your account or pay bills is convenient, but you may be wondering about mobile banking security and whether these apps are safe to use.
You’re right to be concerned. More than 30% of communications service providers said they had experienced eight or more mobile network breaches in the last 12 months, according to Nokia’s 2023 Threat Intelligence Report. More than one-third of malware attacks detected were either ad-click bots, crypto-miners, or banking trojans (15%, 11%, and 9%, respectively).
That said, mobile banking is a relatively safe activity. But you can increase your odds of keeping your money even safer by following some mobile banking security best practices.
Is mobile banking safe?
Mobile banking is generally safe since banks employ numerous security measures to protect your personal information.
In fact, banks spend millions of dollars on cybersecurity. For instance, JPMorgan Chase recently revealed that it spends $15 billion a year on cybersecurity and employs 62,000 technologists to keep hackers from stealing their clients’ money.
Meanwhile, many people feel confident enough to bank on mobile apps; 48% of customers use mobile banking regularly, according to a recent survey from the American Bankers Association.
Still, there are certain situations when your mobile banking data could be compromised:
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Your bank’s financial system is hacked. It has been estimated that in the last 20 years, financial institutions have lost $12 billion to cyberattacks.
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Your phone is hacked. If that happens, a cybercriminal could get into your bank app.
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You are tricked by a scammer into giving out your banking information or sending them money from your bank account.
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Somebody steals your phone. This can be a problem if it hasn’t been protected with security features such as biometric authentication.
The good news for bank customers is that if a loss is the fault of the bank, such as a cyberattack on their systems, your money is insured by the federal government. If money is stolen, you’ll get it back. On the other hand, if you are personally swindled out of cash by a thief, you may never see that money again.
It may be helpful to remember, too, that there really is no 100% foolproof way to keep your money safe. Brick-and-mortar bank locations can be robbed. You could also keep your money hidden at your home, but you wouldn’t earn interest, and you’d be out of luck if you were robbed or if it was destroyed in a fire (unless there was a cash provision on your homeowner’s insurance policy).
In other words, mobile banking has its risks, but all money is at some level of risk no matter how you bank (or don’t bank).
Read more: How do banks make money?
Mobile banking security best practices
When engaging in mobile banking, make sure you take the following steps to protect your sensitive data and money:
Only use banking apps from reputable websites and app stores
You can go down a lot of rabbit holes on the internet, and it would be easy to end up somewhere that looks like a bank website, but is actually a fake.
A good rule of thumb is that the website should have “https” at the beginning of the web address. The “s” means it’s secure and any data transmitted will be encrypted. If it simply says “http,” it isn’t secure. And always download apps from reputable sources such as the Apple App Store or Google Play.
Additionally, be careful about which apps you choose to download. Check the developer’s name and do some research. Reputable apps are usually developed by established financial institutions or well-known software companies and have thousands of downloads. Be wary of financial apps that haven’t been around very long or ask for permissions that seem unnecessary for their functionality, like access to your contacts or media files.
Turn Bluetooth off your phone if you aren’t using it
Bluetooth is a helpful technology that allows you to connect devices over short distances, such as using wireless earphones with your phone. But if it’s on all the time, and you’re out in a public place like a bus station or park, a hacker can use the same technology to get into your phone.
Be careful about pairing your phone with public devices
For example, Have you ever rented a car and connected your mobile phone to the vehicle’s system to access the map or radio? That could be risky. Long after you’re gone, your rental car can store your personal information, such as your address book and your in-car search history. It won’t necessarily lead to your bank account being hacked, but any information you’re giving out to strangers makes it easier for them to eventually start guessing personal information, such as your bank password.
Be careful about giving out personal information
It’s common sense, but con artists have a way of seeming authentic and trustworthy. Rule of thumb: If you call your bank, and need to provide or confirm some personal data, that’s likely fine. On the other hand, if somebody calls or texts you out of the blue, no matter how believable they may seem, you shouldn’t share anything personal. When in doubt, hang up and call your bank directly.
Use public Wi-Fi networks with caution
It used to be that experts would advise consumers not to do any banking through a public Wi-Fi network, such as those provided by airports or libraries. Fortunately, technology has greatly improved since mobile phones first came on the scene — so much so that many cybersecurity experts suggest that worries about public wi-fi are overblown.
That said, there’s still some risk to using public Wi-Fi (anything is possible). So if you’re really worried, keep your mobile banking to a minimum on public Wi-Fi networks. But it’s unlikely you’ll be at risk, provided your phone’s security updates have all been downloaded.