Tips for Safely Banking Online

The Internet offers the potential for safe, convenient new ways to shop for financial services and conduct banking business, any day, any time. However, safe banking online involves making good choices that will help you avoid costly surprises or even scams.

Confirm online bank is legitimate

When are selecting a traditional bank or an online bank that has no physical offices make sure that it is legitimate and that your deposits are federally insured.

Read key information

Most bank Web sites have an "About Us" section or something similar that describes the institution. You may find a brief history of the bank, the official name and address of the bank's headquarters, and information about its insurance coverage from the FDIC.

Protect yourself from fraudulent Web sites

Watch out for copycat Web sites that deliberately use a name or Web address very similar to a real financial institution.

Verify the bank's insurance status

To verify a bank's insurance status, look for the familiar FDIC logo or the words "Member FDIC" or "FDIC Insured" on the Web site.

Protect Your Privacy

Banks are required to give you a copy of their privacy policy once you become their customer, regardless of whether you are conducting business online or offline. You may also see a copy of it posted at the bank's Web site. Reviewing this policy to learn what information the bank keeps about you, and what information, if any, it shares with other companies.

Keep Transactions Secure

The Internet is a public network. Therefore, it is important to learn how to safeguard your banking information, credit card numbers, Social Security Number and other personal data.

Take advantage of security features:

Encryption is the process of scrambling private information to prevent unauthorized access. To show that your transmission is encrypted, some browsers display a small icon on your screen that looks like a "lock" or a "key" whenever you conduct secure transactions online. Avoid sending sensitive information, such as account numbers, through unsecured e-mail.

Passwords or personal identification numbers (PINs) should be used when accessing an account online. Your password should be unique to you and you should change it regularly. Do not use birthdates or other numbers or words that may be easy for others to guess. Always carefully control to whom you give your password.

General security over your personal computer such as virus protection and physical access controls should be used and updated regularly. Contact your hardware and software suppliers or Internet service provider to ensure you have the latest in security updates.

Never give out your credit card or debit card number the number unless you initiated the transaction.

Remember nonfinancial Web sites that are linked to your bank's site are not FDIC-insured.

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