Convenience is the key reason why people are opting out of traditional banking for online banking. Millions of people pay their bills or monitor their transactions online and I happen to be one of them. Banks also benefit from the option of online banking because they can save on operating costs.
However, with the popularization of online banking there can be increased risks of becoming an identity theft victim. Even though most popular banking sites assure you that your information is safe while doing online banking/transactions there are still threats to keep an eye out for.
1. Over the shoulder scheme
This involves the offender observing the victim making online banking transactions and recording the information.
2. Phishing scheme
This entails potential thieves sending the victim an email which appears to have come from the victim’s banking institution as a way to obtain the consumer’s personal information, username, and password.
3. Trojan Horse scheme
This unfolds when malicious software (malware) gets embedded into a victim’s computer without the victim being aware of it. Trojans often come in links or attachments via email. After installation of the software it records the victim’s username and password when he/she logs into their account.
The intention of the fraudster is to gain access to your funds to try and transfer money to another fraudulent account or to withdraw your whole savings. What can you do to be proactive and protect yourself, always be aware of your surroundings when doing your online banking and think twice before opening any attachments or clicking onto any links that appear to have come from your banking institution via email.