Online banking

From ArticleWorld

One a person uses the term online banking he/she means a transaction or payment done on the Internet using a secure bank website. The service was created so that banking can be done on a 24 hour period. This translates in the fact that a person can make payments and transactions even when the bank is closed.

Security

An online store has a simple one password security used against fraud. Online banking needs much more as it may deal with large amounts of money. Most web sites that allow this service will employ the HTTPS protocol and all information sent is encrypted. This includes the personal password as well so the access of a third party on the transaction becomes almost impossible. In most cases there will also be present another layer of security, created in the event that a hacker finds out a user’s password. Different online banking sites will employ different techniques but TAN is the most common. TAN means transaction number. They are only used once and will change at every operation. Other techniques are used and new ones are developed all the time with the purpose of keeping Online banking as safe as possible.

Fraud

There is a popular belief that security used by online banks does not offer 100% protection. It is right. Online banking does not show flawless security and fraud is always possible. In the past years there has been a constant decrease in the numbers of people loosing money due to hackers or other people in online banking. What aids users is the fact that online fraud is traceable and the vast majority of hackers that do this are caught. The most common method of finding out a user’s password is phishing.