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Internet Banking: 10 Simple Ways to Protect Yourself from Online Scams, Fraud and Identity Theft

Banking has become infinitely easier because of the Internet. Online, we can check our deposit or credit-card balance, transfer funds, pay bills, etc. Online banking has saved countless souls from the headaches of doing over-the-counter transactions, such as the long queues (particularly in Metrobank banks) inside banks.

The problem, of course, is that the Internet has made the life of online scammers easier as well. This year, these dregs of the Internet universe are going to strike harder, according to experts, victimizing mainly ignorant and careless Internet users.

But when you think about it, protecting yourself from online scams and fraud, as well as identity theft, isn’t all that difficult.

All you need, foremost, is common sense — and these 10 tips:

1) Never gave out your bank details (such as account numbers, passwords, etc.) via email. Always keep this in mind: NO REPUTABLE OR RESPONSIBLE BANK WOULD EVER SOLICIT YOUR ACCOUNT INFORMATION VIA EMAIL. If an email arrives, purportedly coming from your bank, asking for details or asking you to log on to a site, chances are that is a phishing scam.

2) Choose a bank that offers good and thorough security. My bank, HSBC, gave its clients a device some months ago that is needed in order to access accounts online. So even if scammers managed to get my username and password, they cannot access my account without this device.

3) It pays to buy a good Internet security software. I’ve been using Zone Alarm and it has been working wonders for me. It’s not only an anti-virus and anti-spyware suite — it also has features that can block information (such as account numbers, emails, passwords) from being stolen (by spyware, for one) from your computer to the Internet.

4) Never use public computers such as those in Internet cafes — even the computers of friends or associates — to access your online account. (But if you do, make sure to clean your tracks afterward. Erase the data you might have left behind, by going to the Tools or Preferences section of your browser. Look for the feature that says erase cookies, cache, browsing history, etc. Or check this blog.)

5) When using your credit card online, make sure that you are in a secure site. You can easily determine it by looking at the http in your browser’s URL path: IT SHOULD BE HTTPS://, NOT JUST HTTP://.

6) If you can, use a separate credit card for online transactions. This card should have a minimal amount, enough for a particular purpose. Or just use a debit card. Or use PayPal. (Be warned, though, that PayPal is also a major target of phishing scams.)

7) Make sure your banking passwords are strong. No common names or words. Use a combination of words and numbers, interspersed with small letters and big letters, if possible. It goes without saying, of course, that you must never write your password down. (And don’t use the words or letters or numbers you use in your online banking password for your ordinary login activities, such as checking your web-based email or accessing your Friendster account.)

8) As soon as you are convinced that your online identity has been compromised, report it to your bank immediately. Don’t wait for another day or for another hour. Banks usually have 24-hour call centers so there’s no excuse to delay reporting it.

9) Social networking sites such as Friendster, MySpace and Facebook gather a lot of your private information, such as birthdays, etc. Ditto supermarket or mall promos that require you to fill out forms so you can participate in a raffle or some such activity. DON’T GIVE OUT PRIVATE INFORMATION UNNECESSARILY. For some reason, when you call up your bank to, say, check your account balance or pay a bill or move money, all the information they would need to determine that you are indeed the owner of the account is your birthday and your mother’s maiden name.

10) If you are into online banking a lot, it helps to research on these scams as well as on Internet security in general. Nothing beats good, solid information. Keep in mind that on the Internet, what you don’t know can hurt you. (Plugged/PinoyPress.net)

For the original story go to Pinoy Press.