Simple Tips to Maximise Your Online Banking Security

The Importance of Security in Online Banking

Fraud is on the rise in Hong Kong, with the police estimating average losses of around HKD 9 billion a year. As consumers increasingly turn to digital payment methods and businesses embrace payment processors, criminals are finding ways to breach systems and scam customers.

However, the methods they use often rely on consumer and business oversights, so the onus is on businesses to protect and inform their consumers and employees, as well as on customers to safeguard their own information.

Whether through online and mobile banking, mobile apps, payment processors, or physical devices, security is paramount.

Understanding Online Banking Risks

Phishing is one of the biggest risks of internet banking, and this is true for both businesses and consumers.

Scammers send communications claiming to originate from legitimate sources. They may request information or ask recipients to click a link.

For instance:

• A scammer sends an email to a member of your finance team. The email uses official letterheads and seems to come from the bank in question. It claims that there is an issue with the account that needs to be resolved immediately.
• The employee clicks the link in the email and is taken to a page that looks like the bank's official login page.
• They enter their login details but are unable to gain access. Assuming there is something wrong with the bank's website, they call the bank, mention the email, and realise there are no issues, and the email didn't come from the bank.

It's a process that takes just a couple of minutes, but it means that the scammer now has the employee's login information, giving them access to your business bank account.

From there, the scammer transfers money to their own account. By the time the employee raises the alarm, it's already too late, and the money has left your account.

This is just one way that scammers can gain access to your accounts. They may also research your company in advance to get basic personal information that they use to reset passwords or contact your bank claiming to be you.

Regardless of how they do it, the result is that scammers have your information and will do what they want with your money.

Online Banking Security Measures

Businesses of all sizes must implement strict online security measures to protect themselves, their employees, and their consumers. Convenience is key, and speed is advantageous, but when it comes to online banking and payment processing, security is essential.

Here are a few of the online security measures that businesses must implement to stay safe:

Encryption

Online banking services use advanced encryption protocols to protect the user and their accounts. Encryption means that all data submitted on the banking page is unreadable. So, even if hackers get their hands on the information, they cannot decipher it.

Banks and other financial institutions direct customers through various encryption stages, incorporating steps and technologies such as:

• Encryption Priority: The bank or financial institution will highlight the most sensitive information for immediate encryption, including data such as customer account numbers and transaction details.
• Encryption Algorithm: The bank chooses an encryption algorithm that best serves its customers. Such algorithms include Triple Data Encryption Standard (3DES), which was created to prevent Man in the Middle attacks, whereby scammers hijack transmitted data, and Advanced Encryption Standard (AES), a cryptography standard that secures data and prevents unauthorised access.
• Encryption Keys: The bank generates encryption keys. These unique codes are used to encrypt and then decrypt data, with the data stored in a secure device.
• Encryption Process: The data is encrypted using the aforementioned algorithm and key before being transmitted safely.

As this process occurs on the bank's side, the only thing that a business can do is make sure they work with legitimate and secure providers.

Fraud Monitoring

Online banking security isn't solely the reserve of banks and financial institutions. The business must also play its part in keeping its business and accounts safe and secure:

• Educate Employees: Scammers often target employees with phishing attempts, and as those employees are also tasked with handling and processing customer data, they must be taught about the risks. Teach them about the dangers of exposing their username and password, warn them about common scams, and stress the importance of online banking safety.
• Know Your Employees: Grant online banking access to the most trusted employees. Education isn't enough; you need to know that you can trust them and be confident in their abilities.
• Look for Red Flags: Established security protocols to look for high-risk transactions and other suspicious activities, such as a series of transactions being made in another city/country or large transactions that have no relevance to your business. The bank will likely have systems to monitor and flag such transactions, but they don't catch everything.
• Keep Records: Record everything. That way, if there are any issues in the future, you can look back on your records and see if there are any discrepancies.

Multi-factor Authentication

Multi-factor authentication (MFA) and two-factor authentication (2FA) are multi-layered security measures that require users to pass multiple checks before accessing their bank account.

Two-factor authentication usually consists of a username and password, as well as SMS messages. The user enters their details, receives a text on their mobile phone, and then enters the security code in that text message. It confirms that they know the username/password and also have access to the account holder's phone.

MFA takes this a step further and can include biometric authentication, push notifications, a one-time security code, emails, security keys, and other online security measures.

Real-time Alerts

Real-time alerts are a crucial part of the mobile banking infrastructure. The bank sends notifications to the user's mobile device to warn them about high-risk transactions. A mobile security key can then confirm that they made the transaction.

A common feature on personal Internet banking apps, this method is also imperative for business bank accounts. It turns a personal phone into a security device and allows business owners to easily track incoming and outgoing payments.

Online Banking Safety Tips

Whether you're a big business making regular global payments or a smaller enterprise protecting your interests and those of your customers, here are some security tips to maximise online banking security:

Create a Secure Password

Your internet banking password shouldn't be the same password that you use for other sites. Ideally, it should also be changed on a regular basis. That way, if you are compromised and your password is published online with your personal and account information, the scammers can't access your accounts.

This rule doesn't just apply to business owners. It's also true for any employees with high-level access.

Enable Multi-factor Authentication

Always implement multi-factor authentication to provide more security layers and make it harder for scammers and fraudsters to access your accounts.

Use Official Sources

Only download banking apps from official app stores and websites. Check the website address bar to make sure you have landed on the bank's official URL and haven't been directed to a third-party website.

Avoid Using Public Computers or Wi-Fi

Don't access your business account using public computers or public Wi-Fi, and make sure you don't leave your computer unattended if you're accessing your account in an office space.

Be Cautious of Security Threats

Learn about the latest security threats and the proper use of mobile apps and banking websites. The more informed you are, the less likely you are to fall victim to common phishing scams.

Monitor Your Account Regularly

Check your account regularly and look for suspicious transactions. Scammers will often make regular small withdrawals or cash transactions to avoid raising suspicion, so don't simply focus on major transfers.

Safeguard Your Business Funds with an Aspire Business Account

The Aspire Business Account provides users with a simple, easy, and secure way to manage money and send/receive payments. It has everything you need to manage and grow your business, including the ability to send and receive payments in 30+ currencies with low exchange rates across the board.

If you want to manage your expenses and track outgoing payments, sign up for Aspire Expense Management, a comprehensive and intuitive way to manage your expenses, claims, and Corporate Card payments.

Aspire is equipped with multiple layers of security measures to protect your business funds from fraud and unauthorised access. These include features such as multi-factor authentication and passkey protection. If you detect any unauthorised transactions or suspicious activity, you can also freeze your business account instantly, helping to prevent large-scale losses and safeguard sensitive financial information.

FAQs About Internet Banking Security

What is a mobile security key?

A mobile security key is a two-factor authentication protection method available on most mobile phones. It provides users with an additional layer of protection for accessing certain accounts.

How does a physical security device work in an online bank account?

As the name suggests, a physical security device is an actual device that can be used alongside a username and password. This simple security device generates a one-time security code that the user enters during the login process to confirm that the account holder is the one accessing the Internet banking account.

How can I make sure my online banking is secure?

Use secure passwords, security devices, and one-time codes; change your password regularly, and inform your employees about phishing scams and other tricks used by scammers to gain unauthorised access.

What is the biggest danger of online banking?

Online and mobile banking is inherently safe, but there is always a risk, especially if the user doesn't follow the necessary security protocols. Business owners and employees should keep their login details to themselves, keep their phones to themselves, and refuse to give out one-time codes to anyone.

What is the safest device for online banking?

Although there is a risk of losing your phone, mobile banking typically provides safer and more convenient banking services, as there is less risk of getting malware than on a desktop computer. Still, there is a risk with all devices, and the proper procedures must be followed to protect sensitive data and finances.