Are online banks safe? Short answer: yes. As the executive director of enterprise fraud, security and investigations here at Ally, I can shed some light on the topic. Online banks take numerous precautions every day to keep your money safe, from advanced cybersecurity technology to the latest user authentication methods. Plus, you can take additional steps to further bolster your online safety.
First, what is an online bank?
Online banks operate primarily digitally, without physical branches. While you won’t meet a teller face-to-face as a customer, you can access and manage your account anywhere, at any time, with your mobile device or computer.
Because online banks have lower overhead than traditional banks, they tend to offer higher interest rates and charge lower fees than brick-and-mortars. And because they’re digital-first, online banks typically offer more advanced features to help you manage your money.
Read more: Learn how to open an Ally Bank Account online and access smart saving and spending tools
Are online banks safe to use?
The reality of cybercrime today means all banks have implemented advanced technologies to combat fraud and scammers — whether they’re based online or not. All federally insured banks are required to have robust security practices, meaning those online and traditional banks must meet the same standards.
With any bank, look for features that protect your data, like fraud monitoring, multi-factor authentication, encryption and other tools.
Tips to protect your online bank accounts
Being smart about how you communicate with your bank and protect your personal information can have a big impact in avoiding financial fraud:
1. Choose where you log in wisely
If you’re on a shared Wi-Fi network, like at a coffee shop or library, your information is in more jeopardy than on your home network. That’s because most lack necessary security measures, have poor router configurations or weak passwords, which hackers can exploit.
It’s best to avoid banking or conducting any other activity that involves sensitive data over public Wi-Fi. If you’re out and need to access your bank account, use your cellular network instead.
2. Use trusted websites to access your online banking accounts
In addition to checking your network, make sure to access your account through a secure browser. Avoid clicking on links appearing to direct toward your bank, even if they look safe. Instead, use a bookmark or type in your organization’s URL directly, or log in from the official app.
All federally insured banks are required to have robust security practices, meaning those online and traditional banks must meet the same standards.
3. Build strong, unique passwords
It’s tempting to repeat passwords or keep them simple, but don’t get complacent when the security of your financial information is on the line. Create complex, unique passwords to provide another layer of protection for your funds. And always secure your device with its own unique keycode.
4. Enable multi-factor authentication
Your Ally Bank Spending and Savings Accounts have built-in, multi-factor authentication (MFA). Unlike many other apps, your Ally Bank Spending and Savings Accounts have built-in, multi-factor authentication (MFA), which means no extra steps for you to enable it. MFA mitigates password vulnerabilities. Without access to a secondary device or verification method, unauthorized users stay locked out, even if your password was stolen.
Not sure what security measures your bank has? Governmental agencies like the FDIC have available resources to help you better understand how it keeps your data safe.
5. Don't respond to suspicious emails, texts or phone calls
Customers across the industry are victimized every day by fraudsters pretending to be associated with a bank over email, phone or text. Some can even spoof the bank’s phone number, so it looks legitimate. Not sure what to look for? Be vigilant and look for these signs that a message might be a scam.
6. Sign up for fraud alerts
Most banks, including Ally Bank, allow you to set up suspicious activity alerts. In the unlikely event a fraudster gains access to your online accounts, you receive an alert via email or text informing you about any questionable transactions or unusual login attempts.
Is Ally Bank safe?
Ally Bank follows rigorous security standards to keep your money as safe as it would be in a traditional bank. Our security measures include MFA, SSL encryption, automatic logouts, optional biometric authentication and more. And, we guarantee that you will not be liable for any unauthorized online or mobile banking transaction as long as you report it to us within 60 days. Keeping your accounts and information secure is a top priority for Ally Bank.
