How to Protect Your Mobile Banking from Fraud

Mobile banking is a great tool for small businesses to access and keep track of their funds. However, when your mobile bank account is made easily available on your smartphone or other device, the risk of fraud or identity theft naturally increases.

Because so many individuals are taking electronic banking to the mobile phone as their main way of accessing accounts, the target for criminals has also grown. Mobile banking fraud is similar to online fraud in that it involves hacker’s accessing private login information, and because it is so easy to transfer funds, they can easily be sent to outside accounts. Here are 5 tips for protecting your mobile banking account from fraud.

Protect Your Login Information
This one goes without saying. Having a secure login and password to your mobile banking account is probably the most reliable way to protect your account from being accessed by someone you don’t know.

  • Be sure to include all types of characters in your password: upper and lower case, numbers and special characters.
  • Also be hesitant of using personal information like names and birthdates in your password.
  • Be Careful Choosing Apps.If you use a smartphone and download a mobile bank app to access your online bank account, be wary of which app you are downloading from the App store. Read the description details of the app to make sure it is not an imitation that may ask you for your personal information. Make sure that the app is authorized by your financial institution before downloading or using it.

Lock Your Phone
Most phones and smartphones include a lock feature on their home screen; you can set a password or number code so that only you can access its contents at any given time. According to American Banker, many banks actually rely on this to provide an extra layer of protection, so if you don’t set it your banking will not be as protected as it should be.

Be Aware of Email and Text Message Content
Even if the phone hacker does not have direct access to your mobile banking login information, they could still acquire it through other means once they have access to your phone.

  • Be sure to delete all messages sent to or received from your financial institution. They may contain account numbers or even login information that could be used against you.
  • E-mails in your smartphones inbox can also be used to obtain your online banking information. If you have recently requested a new password, be sure to delete any emails that would give your information away.

Know what to do If Your Device is Lost
Many of us have emotional relationships to our smartphone, but if your phone is lost or stolen it could mean much more than just a sad day. While Javelin Strategy & Research reports that 61% of mobile baking providers can let you deactivate their app from afar, be sure you take each and every precaution.

  • Access your mobile banking account as soon as possible to remove the old number from your profile.
  • Some devices can be remotely swiped of all memory and reset to factory settings.

Be sure to take advantage of these various safety features if you plan to do bank with your phone. By adopting each of these tips into your mobile banking, you will make your financial information safe from hackers.

About the author: Kate Webster writes for lead generation resource at Resource Nation. She focuses on a variety of topics including business banking and mobile banking solutions.

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