Money 101: Is Your Bank Secure?

(Daily360.com) – When you deposit money in a checking or savings account, is it secure? That question becomes more difficult to answer every single day. More institutions than ever are moving to an online-only operating model, which increases the risk of cybercriminals intercepting and stealing your data so they can pilfer funds. But even major brick-and-mortar banks like US Bank can fall victim to breaches, data thefts, and hacks. Here’s how to gauge whether your chosen provider is doing all it can to keep your cash safe.

Check Consumer Protections: Find out if the bank guarantees your deposit before making your choice. You want the place you pick to have backing from the federal government through the Federal Deposit Insurance Corporation (FDIC). If an FDIC-insured company suddenly goes under, the US government will return your funds up to $250,000.

The most fascinating element of financial institutions on the internet I find is how there is not a universal understanding of good security.

Each institution pushes back differently, whether it’s software keyboards, or differing password policies, or rejecting password mngers

— Josh Withers (@JoshuaWithers) January 24, 2022

Privacy Measures: Cybersecurity is essential in the age of technology, as identity theft is a real concern that can lead to headaches in your financial and personal life. Look into the history of the institution you’re considering and ask how they intend to protect your information. Have they suffered security breaches in the past? Do you see any complaints from past customers? Consider these issues red flags for potential problems.

Remedies and Resolutions: Ask the bank about what protocols it has in place to fix any problems that arise, including unauthorized account access or fraud. Find out what steps it will take to remedy the issue, including timeframes, and make sure the policy is clearly written.

Last but certainly not least, read all paperwork — especially the fine print — before depositing your first dollar. Due diligence could save you unnecessary troubles down the road.