It’s no secret more and more consumers are opting to use finance apps over, or at least alongside, traditional banks. Bank of America, alone, has over 25 million active users on its mobile banking app.
Mobile banking is certainly convenient. As long as you have your phone, your debit card is always with you. Not to mention, you have real-time access to your balance and payment options.
Whether you want to transfer funds, buy something from Amazon, or keep track of your budget, these apps make it easy. The question is, is having your banking information on your phone safe?
Banks and fintech companies spend a lot of money securing their apps. With that said, you still need to take certain measures to ensure your safety.
If you use finance apps, here are six ways to make sure your money is safe:
1. Stick to Established Names
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A finance app with few downloads or reviews is a risky bet. Only download those that you, or at least other users, recognize.
During the pandemic, a lot of banks closed, forcing more people to use finance apps. Unfortunately, that surge in mobile banking created opportunities for cybercriminals. They launched fake apps that looked legitimate, tricking users into entering their banking information.
Most banks’ websites provide links to download their mobile app. When in doubt, call or email your financial institution to request a direct link.
2. Use A Strong Password
The most secure app in the world won’t keep your information safe if you make your password easy to guess. Choose one that contains upper and lower case letters, numbers, and symbols.
If your banking app requires a PIN, treat this like a password. Pick random numbers that you’ll remember. Make sure it’s not as simple as “1111,” or something as guessable as your birth year.
Some banks require customers to use two-factor authentication. This model requires you to confirm your identity after typing in a password or PIN by entering a separate code sent to your phone or email.
Two-factor authentication is a solid safety measure, but it’s not full-proof. If someone were to gain access to your phone, they could retrieve that code and have access to your finances. Some people even spoof cell phone towers to intercept the code in transit. In other words, it’s not a substitute for a strong password.
If you struggle to remember your passwords, don’t write them down on a piece of paper or save them in your phone’s notes. Instead, use a reputable password manager to store your passwords.
Password managers are coded to protect your data from being hacked. Many of them will even generate your passwords for you. Some will check for compromised passwords online and encourage you to change them.
3. Familiarize Yourself With Phishing Scams
Most financial scams are crimes of opportunity. That is to say, many hackers steal usernames and passwords simply by getting customers to enter them in an insecure site.
To date, about 4,000 mobile banking app users have been victims of phishing scams. Phishing attacks aren’t difficult to launch, and they can net hackers access to dozens or hundreds of accounts at a time.
Most financial institutions will reach out about phishing scams they discover. But as is true of two-factor authentication, these notifications are not foolproof. Scammers specialize in operating under the radar.
Familiarize yourself with common phishing techniques. The most popular one is to send text messages to trick users into clicking a link. Others email fake statements that, again, when clicked, direct users to a dangerous website.
These messages don’t typically look out of the ordinary. In fact, hackers try to make them look authentic by referencing your bank or another company you’ve recently done business with. Never click a link you aren’t 100% sure is legitimate. If you do, reach out to your bank immediately.
If you receive a text or email you suspect is a phishing attempt, do your part: Report it to your bank to make sure others don’t fall victim to it.
4. Sign Up For Security Alerts
Phishing is only one type of security issue. Most finance apps offer alerts whenever there’s potentially fraudulent activity on your account, which can help you address any issues in a timely manner. If your banking app has this feature, make sure you sign up.
Security alerts let you know in real time if your identity is compromised. This way, you’re able to request a new card and contact the authorities before the damage gets worse.
Even with these alerts, you should check your bank account at least once a week. Often, cybercriminals start small to avoid detection. If anything looks suspicious — even if the transaction you don’t recognize is for $3 — contact your bank. Ask to be issued a new card.
5. Stick to Secure Networks
Since 2015, mobile app fraud transactions have increased by over 600%. Many of these are due to app use on unsecured Wi-Fi networks.
Public networks might be convenient, but they’re not very secure. Their openness makes it easier for cybercriminals to steal your information. In fact, there’s a chance the network might be malicious itself, rather than merely infiltrated by a malicious actor.
Whenever possible, use your banking app at home on your personal Wi-Fi network. If you’re outside the house, use your cellular data instead.
6. Keep Your Phone’s Software Up to Date
Updating the software on your phone can be time consuming, but it helps to keep your information safe. If you’re using outdated software, criminals may tap into vulnerabilities that have since been patched.
If your phone offers an auto-update feature, enable it. If not, check for software updates at least once a week. Install newly released updates as soon as you can.
With cyberattacks on the rise, financial institutions are doing what they can to keep users safe. After all, banks are the ones typically on the hook if a customer’s account is compromised.
Still, your financial security depends on you doing your part. Download apps with care, use them securely, and speak up if you suspect criminal activity is going on. Fighting financial fraud is a team effort.