Mobile banking allows you to perform many of the same activities as online banking using a smartphone or tablet instead of a desktop computer. However, simply accessing the bank's website on a mobile device is not the only method of mobile banking.
Even if you don't download a fraudulent banking app, scammers can still gain access to your accounts through other malware-infected apps. Hackers use a type of malware called “keyloggers” that record all the information you type into your phone — including bank accounts and passwords.
Online banking vs mobile banking
All online banking operations are conducted via a bank website. To access accounts, users need an internet connection and a browser on their desktop, laptop, or mobile device. To use mobile banking, users need to install a dedicated banking app on their smartphones.
Kyle Marchini, a fraud management expert, told Burnette that it's easier to download malware using a browser than it is with apps. However, it's possible to unknowingly download a false version of your financial institution's banking app through a platform like Google Play or the App Store.
A bank app may be safer than your bank's website -- but you'll still need to take security precautions. Dashia is a staff writer for CNET Money who covers all angles of personal finance, including credit cards and banking.
When you're using an unsecured or public network, it's best to stick to activities that don't involve sensitive data. If you need to access your mobile banking or another financial app, turn off your Wi-Fi while you do. You'll use up some of your data, but you'll be much more secure.
Is Mobile Banking Safe on iPhone? Banking apps on iOS tend to be secure thanks to the rigorous standards of the App Store. The most vulnerable iOS systems are those that have been jailbroken.
Is 4G safe? 4G is safe because it uses encryption to secure your internet connection. Encryption technology scrambles your data, so it's unreadable to anyone without the decryption key. In case of a data breach, a 4G connection protects all your private information.
A small vulnerability in your home Wi-Fi network can give a criminal access to almost all the devices that connect to that network. Hackers and scammers might be able to access your online bank accounts or credit card portals.
Due to the open nature of the Internet, all web-based services such as YAB's Online Banking are inherently subject to risks such as online theft of your User ID/UserName, Password, virus attacks, hacking, unauthorized access and fraudulent transactions.
Security and fraud instances: This is one of the most significant challenges for banks promoting online banking. In traditional banking, robbers break into the banks to steal money, whereas in online banking hackers can break into customers details and illegally transfer money.
So, is Mobile Banking Safer than Online Banking? Whether you choose mobile banking or online banking, you can be confident that your bank has invested in the security of these services. However, mobile banking is a little safer when it comes to security, mainly because this type of banking does not store any data.
Verify it's FDIC insured
Use the FDIC's BankFind tool to verify the online bank you're looking at has FDIC insurance. You can search by the bank name, the FDIC certificate number, or the web address. If you can't find anything on your bank here, that's a sign you probably want to skip it.
Your assets, personal information, and transactions are safe when done online, thanks to the security measures adopted by banks. Yet hackers never stop coming up with new ways to carry out their malicious activities, so the need for more security and power in banks will only grow.
While iPhones are generally considered secure, they are still susceptible to hacking, among other types of security threats. Despite Apple's efforts to enhance security features in iOS, you should still be aware of potential risks such as phishing, malware, and other cyber-attacks.