How to Safely Bank with Banking Apps

Over the past several years, the popularity of cash has rapidly declined. This is especially true since the onset of the pandemic of 2020. While it is convenient to have cash on hand to be able to cover the costs of goods and services, third-party banking apps have gained an immense amount of popularity. In fact, our society – as a whole – is now considered to be “post-cash”.

Third-party apps allow you to successfully facilitate conveniences and allow you to send money, request money, and transfer money quickly and easily. These apps placed on your smartphone allow you the highest level of convenience. As with any form of technology, though, it is important that you take the steps necessary to ensure that you are using these apps safely. In this guide, we will offer you some basic steps on ensuring the highest level of safety when using third party banking apps.

Can Scammers Hack a Banking App?

While it is true that mobile banking apps are both fast and extremely convenient – in terms of use – it is important that you know that they are not always safe. Any third-party app that can be used to access your money is a potential target for the scammers that are out there. It has been estimated that approximately 200 million people in the United States use bank apps in order to obtain account balances, make deposits, transfer funds, and pay bills. While most of these transactions are uneventful, this is not the case for all people. Some of the most common worries that should concern you when using a third-party banking app include the following:

1. Your phone becoming lost or stolen
2. The account password being stolen
3. Mobile malware threats
4. SIM card swaps
5. Fake banking apps
6. Your data being hacked

What Could Happen to You While Using Mobile Banking Apps?

“Mobile banking” is a term used to describe the use of your bank’s app to directly access your account. It is different from online banking. That is when you log on to your bank’s website on your phone or on a browser on another device. It is important that you learn about this difference because you should know that your bank has more control over the security of your bank account when you use the banking app than when you use their website.

When you use a banking app, data is transmitted between the device you are using and the server of the bank. In order to successfully do this in the safest way possible, the app will need to verify who you are by using your phone ID and the data associated with your account. Unfortunately, there are three different ways that a hacker has the potential to breach the data associated with you and your account:

1. On the device that is being used
2. While your information is in transit from the device to the server
3. At the server of your bank

Top Risks Associated with Banking Apps

There are numerous risks associated with banking apps. The following outlines the top 10 of these risks:

1. Texts and calls that are manipulated and claiming to be individuals from your bank
2. Emails that contain phishing links and fraud alerts that are completely fake
3. Your phone being stolen and hacked
4. SIM card swaps that are capable of controlling your phone
5. Your personal bank-related details are available for purchase on the Dark Web
6. Mobile apps that are fake
7. Wi-Fi Hacking
8. “Keylogging” malware that is placed in other types of apps
9. Scams surrounding mobile check deposit features
10. Overlays involving Trojans that are designed to misdirect your transactions

Protecting Yourself from Risks Associated with Third Party Banking Apps

The risks associated with third party banking apps are truly scary, but the good news is, the apps may be used safely. There are several ways to protect yourself from the risks that we have outlined in this guide. The following outlines these strategies:

1. Utilize Only Official App Stores – You should not download apps from any type of third-party app store. The reason being is that these stores may be fake or they may have malware loaded onto them. The official app stores typically have very strong security features in place that will reduce the opportunity for a malicious app or a fake app to make its way onto your phone.
2. Don’t Skip Over Updates – Hackers are known for taking advantages of vulnerabilities that are caused by outdated apps and outdated devices, as well as bugs that may make their way onto outdated devices. It does not matter what type of device or app that you are using, it is essential that you always stay up to date on any associated updates. Just make sure that the updates that you are downloading and installing onto your devices are from official websites and/or apps.
3. Pay Attention to Your Passwords – When creating passwords for your devices, accounts, and apps, pay close attention. You should use strong passwords that contain numbers, letters, and special symbols. The password should not be easy to guess and should not be used across multiple websites and/or platforms or accounts and/or apps. Try to make it at least eight characters long. The longer the password, the better.
4. Protect Your Phone – When working to protect your phone, you should use a passcode that is secure and hard to guess or a biometric ID – such as fingerprint or even facial recognition. You should set the phone to lock automatically when it is not being used and you should always log out of your banking website and/or app that is on your phone. Never leave any account logged in anywhere.
5. Two-Factor Authentication – When the opportunity presents itself, be sure to add as many layers of security as possible such as two -factor authentication. If you use an authenticator app, choose one like Google instead of a text because the hackers know how to bypass a text authenticator. This is especially true if they do a SIM card swap.
6. Don’t Use Jailbroken Devices – You should never use devices that are said to be “jailbroken” or said to be “rooted”. These devices are known for being more prone to hackers and malware. If you have an Android, go to settingsstatus information- phone status and verify that it says “official”. If you have a new phone and it has not previously been tampered with in this way, it should be secure enough to use. If you want to see if you have such a device, look for apps like the one named “Sileo”. If you are unable to update the software on the phone, you may have a phone that has been tampered with.
7. Contacts from Bank – To mitigate the risks associated with banking apps, you should not respond to any type of unsolicited call, email or text that is said to be from the bank that you use. If you want to contact the bank, you should initiate the contact by calling the customer service number listed on your bank’s website, or the documentation you received when you opened your account.
8. Antivirus Software is a Must – To protect yourself from malicious apps, you should always use an antivirus program on your device that also has protection against malware and phishing. It is best to use services that are designed to protect all of the devices that you use to connect to the internet – your phone, computer, and/or tablet.
9. Signs of a Malware Infections – Be sure that you learn the signs of a malware infection. These include the battery life being lower, strange messages that are located in the “sent” folder that you know you did not send, unusual levels of data being used on your phone, experiencing issues with your phone’s performance, and seeing applications on your phone that you know you did not install.
10. Use Mobile Data – When you are using financial apps on your phone, be dure to only use your mobile data. You should never use public internet when you are attempting to use apps and websites with personal data that needs to be protected. If you want, you may add an additional layer of protection to your mobile data usage with a Virtual Private Network (VPN). This will actually encrypt your data so that if a hacker is able to break into it, they will be unable to get any data that is useful in causing you harm.

Contact Us Today

If you want to experience the convenience of using mobile banking, choose a bank that enhances security such as us here at Somerville Bank. We take a large assortment of safety measures that are designed to protect your financial information from scammers, hackers, and malicious apps. For more information, please visit one of our convenient locations today. You may find a location near you by clicking on the following link: https://somervillebank.net/locations/

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