Why is online banking safe?

The utmost priority of banking is the security of the financial information of the customer. In general, online banking is safer than traditional banking methods. As an account holder, one has a vital role to play in protecting their accounts, because criminals work on a smaller scale by doing direct consumer attacks. For example, fraudsters use phishing scams, in this type of scams they send e-mails alleging to represent a financial institution. However, it's almost easy to stay safe. To preserve that, the Banks use two methods to make it safe and secure:

  1. All the activities done on Online Banking are done on SSL enabled servers, so encryption is not an issue. It also uses the methods of signature verification, in this, the transactions done by the customer are signed and encrypted digitally.
  2. Use of PIN/TANs: In this, the PIN is used to login and TAN are used to verify the transactions. TAN’s refer to one-time passwords which are sent to the customer via SMS on the customer’s registered number which is valid for a short time frame, is used to verify the transaction.



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