How safe is Internet Banking?

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Forums › Finance and wealth management › How safe is Internet Banking?

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shk292

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#1304937 14-May-2015 09:59

RUKI, that seems like caution bordering on paranoia. Personally, I've been using internet banking for around 15 years over many different bank and credit card sites and have never lost a cent or been subject to a credible phishing attack. I also don't know of anyone, or have even seen any news reports of anyone, losing money through normal use of internet banking - and by 'normal' I'm excluding those lovely people who respond to Nigerian 419 scams and clumsy phishing attacks.
My view is therefore that if internet banking were more risky than keeping cash in my wallet:
- we'd hear about it in the media
- the banks wouldn't support it (because they end up covering the losses)

NonprayingMantis

6434 posts

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#1304966 14-May-2015 10:12

RUKI:
.... Here are some tips that I like to share with you:...

Make a strong password with special characters
Change password after some time period
Don't share your password

Well, online banking only starts at your fingertips. Transaction is undertaking a long journey. How confident are your about what you plug in your laptop does not have exploits already? - e.g. USB flash card, USB cooler pad, external hard drive, web cam, etc. It is behind firewall already and any of your anti-whatever tool treats that with less scrutiny if looks at it at all ....

Your smart phone has few free apps you've downloaded – how confident are you that the only reason they are free is that the fishing has already started and you are on the hook? You don’t have access to the source code, right? What you are suggesting about password is like "when start your car - make sure you've fastened your seat belt and you'll be safe".

Yeah right, you can't see what is happening around the corner or inside the gearbox or perhaps there is a nail already in the tyre or the road conditions along your journey are about to get nasty or the airbag is one of those dodgy ones which can explode and kill.

Do not be naive of thinking password is your solution. It is no safer than using your seatbelt if I may use that analogy. Password is like the tie on the hotel room door – it is the polite message for honest people – “do not disturb, please”
100% to avoid a car accident is not to drive the car at all. 100% to avoid money being stolen (when you have enough for crooks to be bothered) is to not use online banking.

How does avoiding using online banking protect your money 100%?

since we're being paranoid about every possibility here, traditional banking also has risk.

you could be robbed on your way to the bank. you could have your cc swiped and cloned. you could have someone fake your ID and withdraw your money.

If you avoid banks altogether, and keep your money in a mattress or safe, then that can be broken into and stolen.

those things are far more likely to happen than being hacked using online banking.

IMHO, online banking is far, far, safer and lower risk than the alternatives.

mdf

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#1304979 14-May-2015 10:20

Banks going bust is a pretty big risk too. The GFC showed us that. And in New Zealand, BNZ in 1989.

I was in Switzerland for a while during my OE, and it was common knowledge that the top echelons of most Swiss banks literally had bullion secreted away in private vaults for when armageddon came. I had put it down to urban legend, but someone I trust confirmed it for me for at least one banker he personally knew.

RUKI

1402 posts

Uber Geek

#1305087 14-May-2015 12:33

Friendly comments and some suggestions inside your post after ===> “ “

NonprayingMantis:

How does avoiding using online banking protect your money 100%? .... traditional banking also has risk ====>” the only risk I see in relation to NZ Banks is that your funds are not secured if banks go belly-up themselves”.

you could be robbed on your way to the bank =====> “do not carry cash, do not carry more than couple of parking coins anytime with you”

. you could have your cc swiped and cloned =====> “do not keep a lot of money (you decide what is a lot for you to lose) in the account which is card accessible. FYI – consider PIE fund, taxed at maximum 28% tax rate and keep in your day-to-day account only what is required for you to pay next bill. Consider reducing minimum allowed on the credit card. By default it is $1000 but you can ask it to be lowered”

. you could have someone fake your ID and withdraw your money ====> “that is the case which would require a lot of investment and you really need to have big money to lose to justify that type of attack. Banks have multiple CCTV pointing at you when you are at the counter.

If you avoid banks altogether, and keep your money in a mattress or safe, then that can be broken into and stolen =====>” that is stupid thing to do. No cash on premises. End of story”

Wouldn’t it be great if all Geeks in New Zealand had the job to secure 6-digit number in their account?
So that the topic at least has some substance to it.
With what we are getting I look at this being more theoretical than practical discussion....

shk292

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#1305097 14-May-2015 12:57

Wouldn’t it be great if all Geeks in New Zealand had the job to secure 6-digit number in their account?
So that the topic at least has some substance to it.
With what we are getting I look at this being more theoretical than practical discussion....

That's spurious. Without going into my personal finances too much, I have sets of accounts with two separate banks that would be worth ripping off. Your assertion that "nobody gets robbed because nobody has significant net worth" doesn't stand up

kotuku4

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#1305773 15-May-2015 13:15

Hi
I have used several internet banking sites. I prefer the Kiwi Bank "keepsafe" second layer security, as you don't key in the information but select the letters on screen. This means that no key logging system will work to copy the entered information.

I definitely don't like password token devices.

Finding mobile banking apps particularly useful now. Currently using Kiwi Bank and Cooperative Bank, with no security issues.

I did get a prepay/debit card for online purchases, as I once had an problem with some unauthorized purchases after paying with my standard credit card.

dafman

3928 posts

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#1313619 28-May-2015 17:07

Kiwibank, for example, would never send you and email that reads like this one I just received ...

https://cdn.geekzone.co.nz/imagessubs/e4b40a0f22ddaf54c78c84f18af48838.jpg

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cyberhub

224 posts

Master Geek

#1315270 31-May-2015 23:01

Finch: Hello.

I am thinking of registering for Internet Banking with Kiwibank. However I thought I would enquire about how safe it is to put my mind at ease. Obviously with the amount of people that use it in this day and age, it must be pretty safe.

I guess I only run the risk of losing my money if I click on some dodgy links etc?

Just trying to put my mind at ease really.

Thanks.

I don't use kiwibank but all you need to do is ensure that there is some sort of 2nd factor authentication. ASB has this neat feature that sends you a text to your mobile when ever you transfer money out of your account.

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richms

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#1315304 1-Jun-2015 05:46

Asbs feature is not neat as they only allow for one mobile number and no backup codes. And can't sms international numbers. And changing number in it is a pain.

Richard rich.ms

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