“The Pros & Cons of Online Banking”

notes from Coffee Talk session, February 11, 2011

Pros:           Convenience - sites are available 24/7.

Organization - you can go “paperless” as all account information is organized for you.

Automation - you can schedule payments to occur automatically.

Cons:          Knowledge of cyberspace - it can take time and computer savvy to use.

You still have to go to the bank - to make deposits.

“Real records” online - online transactions and statements are only kept available for a limited time.

Protect Your Online Finances:

Debit Card - Checking accounts have additional risks and possible liabilities from fraudulent charges as compared to credit cards.  Guard your debit card and PIN at all times.  For more information visit: http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre04.shtm.

Personal Checks - Use only your first initial and last name on your checks - remove address and never print your social security number on your check.

Computers - install a firewall, anti-virus and anti-spyware software, and keep them up to date.

Accounts - create strong passwords (long combinations of letters, numbers and symbols) that are hard to guess, change them regularly and keep them hidden.

Websites - make sure you are doing business with a secure site, which are sites beginning with “https” (not just “http”) and/or a small lock icon in a corner.  Also read their privacy statement to ensure your information in encrypted.

Back up your data - Always back up your data to a removable disk or external hard drive in case of a crash or “hacking”.  Store this data in a safe place.

Resources:

 - Identityguard.com - secure personal information from identity theft

 - Malwarebytes.org - free anti-spyware software
 - Mint.com - financial organization and budget information

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