Online Hackers Wreak Havoc on Bank Accounts

Not only is Internet bank robberies more common then ever, the tactics of a hacker is becoming more complicated leaving more people open to fraudulent activity. Many consumers are happy to continue banking online because it is convenient and reportedly safe. But even the sophisticated banking security measures can be penetrated, leaving the consumer with big problems and little money. Last year alone more than $559 million was taken from consumer bank accounts via the Internet.

 How Does It Work?

There are what are known as ‘banking trojans’ which is actually malicious computer codes that enable bank fraud. These codes are invisible but powerful. They can steal various kinds of data, including account passwords. As Trojans keep progressing, many can now facilitate online transfers from one account to another. They are literally stealing your money when you are logged in to your account.

But My Bank Says They Are Secured…

Most banks do go though rigorous methods to ensure customer security but it is not always good enough. A bank’s security measures should include several questions at log in time besides the traditional username and password request. If you only have to enter the username and password when accessing your account, your bank’s site is not secure as you might believe. In the least an additional security question should be asked of all customers when logging on.

What Happens If Your Hacked?

One of the most important things you can do to protect yourself is to monitor your accounts and if you suspect suspicious activity, contact your bank immediately. Traditionally, the bank will be liable for the theft for all consumer checking and savings accounts if the acts of theft are reported right away. Consumer accounts are protected by the Electronic Funds Transfer Act which sets a loss limit at $50 for theft if the loss is reported within a 60 day time frame after the activity is reported on a statement. Lines of credit and business accounts have different rules and in many cases the liability lies with the account holders. The best bet is to speak with your bank directly about how they would handle the matter. Clearly understand your rights if something fraudulent should occur.

Bank Smart

Technically anyone can have their bank account hacked whether you prefer to bank online or in person. Essentially any time you get a printed statement in the mail someone could still it and use your information fraudulently. Banking online also has risks that can negatively affect your account and rob you of your cash. Protecting yourself by becoming informed about the banks security measures, your rights, and by securing your own computer makes it less likely you will become a statistic and a victim of online bank fraud. Never take for granted that your bank statements are right. Analyze each statement each month line by line to ensure all the purchases and transactions are correct. Hackers are known to take little amounts of money over a long period of time because consumers are less likely to notice ten $20 charges than they are to notice a one-time charge of $200.