Generally, opening a bank account online is safe and secure. But you may feel skeptical about that, especially if terms such as encryption, fraud monitoring or multi-factor authentication are unfamiliar. Each term refers to a common security method, and they all work together to help keep your money safe on and offline.
Understanding how each protective measure works could help set your mind at ease. And learning how to safely open a bank account online and securely manage your money can protect your funds even more.
How can I safely open and operate a bank account online?
You can safely open and operate a bank account online by choosing a government-backed institution, confirming its coverage and legitimacy through official tools and building strong security habits.
You can start by verifying that your bank or credit union is federally insured through the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Administration (NCUA). Then check member reviews, look for a secure website and turn on every security feature your institution offers. Then, practice the habits that go one step further in protecting your account.
Here’s a deeper look at each step.
Only open accounts with trustworthy institutions
Vet the institution before sharing any personal information, whether you’re banking online or in person. You can navigate to banks.data.fdic.gov/bankfind-suite/bankfind to search your options on BankFind, the FDIC’s verification database. You can also travel mapping.ncua.gov/ResearchCreditUnion, the NCUA’s research tool. After confirming your bank or credit union is federally insured, you can dig a little deeper to make sure it’s a good fit.
- Check out reviews and ratings
Search what current members say about the account opening process and their overall online security experience. Those reviews can help you know what to expect.
- Confirm the website is legitimate
Look for a secure URL, clear contact information and a physical address or phone number you can verify.
- Get a sense of app capability
Established institutions with a digital presence often have secure apps you can download for easier online banking. Seeing that app on a legitimate app store is a good sign.
Check for all available fraud prevention measures
Fraud prevention measures are the security tools your institution uses to protect your account, and many trustworthy banks and credit unions layer several of them for robust protection. Together, they make it harder for scammers to access your money.
Here’s a closer look at those common prevention measures:
- Encryption
Encryption scrambles your data as it travels between your device and the bank’s servers, so it stays unreadable to anyone who tries to steal it.
- Multi-factor authentication (MFA)
MFA asks for multiple forms of verification at login, like a face scan or a code sent to your phone or email. Two-factor authentication is also an option, but it only offers one additional verification method at login.
- Firewalls
Firewalls block unauthorized access to your institution’s network.
- Fraud monitoring
Fraud monitoring flags unusual activity, such as an unfamiliar login location, a new device or an unexpected transfer, so you and the bank can act fast.
These measures can do an excellent job of protecting your account, but none are completely hack-proof. Layered protection lowers your risk, but it doesn’t always erase it. That’s why practicing a few personal banking habits can help keep your money and login information out of the wrong hands.
Do your part to secure your online bank account
Even if you find a sophisticated bank with the latest security practices, protecting your money is still a shared job.
Here’s how you can play a crucial part in lowering your security risks online:
- Use a strong, unique password for your bank account and don’t reuse it anywhere else.
- Change your passwords regularly.
- Enable MFA settings wherever your bank offers it.
- Keep all your devices updated with current security software.
- Skip public Wi-Fi when you bank and use your phone’s secured data connection or wait until you’re on a trusted network.
- Pay with a mobile wallet or tap-to-pay when you can to help shield your real card number with a one-time token, so your details stay protected.
- Turn on account alerts for large withdrawals, new logins, and profile changes, so you can catch anything unexpected right away.
- Shred old bank statements with account details and confirm that any mailed checks arrive as expected. This can help protect against fraudsters intercepting your mail and using those details to access online accounts.
- Watch out for phishing emails and texts. Your bank won’t ask for your password or full account number by email or text, so avoid clicking suspicious links.
- Log out after every banking session, especially on shared or public devices.
These steps won’t guarantee you’ll never face fraud, but they can lower the odds and help you catch issues before they worsen.
Find the right online bank account for you
Ready to open your online bank account? Explore your account options and think about which features matter most to you, whether that’s an intuitive app or strong fraud prevention methods. The right institution will prioritize your money’s safety and help you feel more confident about banking online.
