Mobile banking allows you to manage your finances from anywhere with just a phone and a network connection. But that convenience factor doesn’t mean you can let your guard down when it comes to the security of your bank accounts.  

Luckily, there are several steps you can take to strengthen your financial security while enjoying the convenience of mobile banking.   

Key Takeaways: 

  • Mobile banking is safer when you follow best practices to keep your financial accounts and mobile devices secure.  
  • Using built-in security features and common-sense tips to help avoid scams, you can increase the security of your bank account.  
  • Combining mobile banking with identity monitoring services adds an additional layer of financial protection.  

Mobile Banking Security 

Mobile banking makes it easy to check your account balances, manage transactions, and pay bills without having to visit a physical bank. However, you need to practice good security habits to keep yourself safe.  

Tip 1: Use Strong Passwords and Biometrics 

Strong passwords are the first line of defense for your bank account, but many people continue to use easy-to-guess passwords or reuse the same password across multiple accounts. Use these tips to create strong password protection for your bank accounts:  

  • Create long, complex passwords that are harder to crack. 
  • Create unique passwords for every account you own. 
  • Avoid common phrases or personal information that could be guessed or stolen. 
  • Use a password manager to automate the creation of strong passwords and help you safely keep track of them.  

Tip 2: Keep Your App and Device Updated 

Make sure you’re consistently updating your phone’s operating system and your mobile banking apps. Developers continuously roll out software updates to improve performance, functionality, and security. If you continue to use your phone and apps without updating them, you could be relying on outdated technology with security weaknesses that hackers can exploit.  

Want to make sure you’re always running the latest and greatest version of your phone’s operating system and your apps? Turn on automatic updates for your phone and apps in your phone’s security settings.  

Tip 3: Download Apps from Trusted Sources 

Criminals may create their own third-party app stores to distribute malware, viruses, and other predatory programs. Only download your apps, including your mobile banking apps, from trusted online marketplaces such as the Google Play Store and the Apple App Store.  

Even if an app is listed on an official app store doesn’t mean it’s automatically safe. Use these tips to check if an app is legitimate before you download and install it: 

  • Check user reviews and ratings. Look for apps with positive reviews that appear to be written by legitimate users.  
  • Check when the app was last updated. If it is out of date, it could be more vulnerable to security weaknesses.  
  • Look for apps recommended by the official bank.  
  • Look at the permissions the app requests to ensure they make sense. For example, a banking app may request permission to access your pictures and camera for mobile deposits, but probably doesn’t need to access your contacts or your microphone.  
  • Avoid beta-testing apps as they can be a security risk. Apps in beta test mode can be involved with scams. 

Tip 4: Use Secure Wi-Fi Connections 

Public Wi-Fi networks are convenient and allow you to use your mobile devices without using your cellular provider’s data. However, unsecured networks at coffee spots, hotel lobbies, and airports may be vulnerable to cybercriminals seeking to intercept data from local users. Use these tips to keep yourself safe: 

  • Avoid using public Wi-Fi networks when you are completing sensitive tasks like mobile banking.  
  • Only use password-protected networks when possible.  
  • Use a virtual private network (VPN) to encrypt your data and keep it safe from hackers. Always turn on your VPN before you use a public Wi-Fi connection.  

Tip 5: Monitor Your Bank Accounts  

Regularly checking your bank accounts is the best way to catch fraud quickly. Make sure to read your monthly bank statements and review the transactions on the account. Look for suspicious withdrawals, transactions, and other activities you don’t recognize.  

Report any suspicious activity to the bank immediately. You can always call the financial institution to make a report, but some mobile banking apps allow you to report or dispute suspicious transactions right from your mobile device.  

Remember, it’s important to report unauthorized transactions as soon as you see them because the timeline affects your liability for fraudulent charges:  

  • If you report your debit card or PIN stolen or lost within two business days, the bank cannot hold you responsible for more than the amount of any unauthorized transactions or $50, whichever is less. After two days, you could be responsible for up to $500 in losses.  
  • If you report unauthorized charges within 60 days of receiving your bank statement, you may not be held responsible for any fraudulent charges. After 60 days, you maybe fully responsible for any losses.  

Tip 6: Log Out After Every Session 

Make sure you log out of your mobile banking app after every session as a final layer of security. Many mobile banking apps automatically log you out after a period of inactivity or after a session ends. Check your mobile banking app to see how the logout settings are configured.  

Tip 7: Avoid Phishing Scams 

Phishing scams occur when criminals attempt to impersonate legitimate people or organizations to get your personal information or trick you into clicking malicious links or downloading malware. For example, you may receive a message from your bank telling you to reset your login –  but instead, you’ll click a link to a fake website that captures your username and password.  

Don’t automatically trust any inbound emails, text messages, or phone calls that appear to be from legitimate organizations. Look out for warning signs like bad grammar or typos, email addresses that look strange, or urgent requests demanding your information.  

If you believe the request may be legitimate, reach out directly to the organization that contacted you via the information listed on its official website (not the website that may be listed in the email). Never click links, download attachments, or provide your personal information without verifying that the person or organization requesting it is legitimate.   

Tip 8: Use App-Specific Security Features 

Many mobile banking apps have security features you can enable to keep your bank accounts safer. Check your bank account or app settings to see what’s available. Here are some features to look for: 

  • Biometric authentication uses your fingerprint, face, or other unique biological traits to verify your identity.  
  • Two-factor authentication (2FA) adds a second identity verification step at the point of login to make it more difficult for anyone besides you to access your account.  
  • Security alerts can notify you when you have a low balance, receive a direct deposit, or a suspicious transaction or large withdrawal hits your account. These alerts can keep you informed about what’s happening in your bank account so you can respond quickly.  

Mobile Banking Security FAQs 

Check out our answers to these commonly asked questions about mobile banking security: 

Why is it a good idea to avoid public Wi-Fi while using a mobile banking app? 

Public Wi-Fi is not as secure as a password-protected network that you trust, such as your home network. If you aren’t protecting yourself with a VPN, you should avoid public Wi-Fi and use your cellular provider’s mobile data when you’re banking away from home.  

What can be done in a mobile banking app that can’t be done in your online account? 

Many common banking tasks are available via mobile banking apps. But mobile banking apps allow you to manage your money from the convenience of your phone, tablet, or other mobile device.  

What makes mobile banking somewhat less secure than regular online banking? 

Mobile banking is generally just as safe as regular online banking from a desktop computer or laptop.  

How risky is mobile banking? 

Mobile banking is generally no more risky than other forms of banking. The risks increase when you use public Wi-Fi, if your mobile device has been exposed to malware, or when you are in a crowded space that could allow others to see your screen. 

How can I make my mobile banking secure? 

The best way to make mobile banking secure is to protect your account with strong passwords and security features, avoid risks like public Wi-Fi, unverified apps, or phishing scams, and monitor your account for suspicious activity.  

What are the disadvantages of mobile banking? 

One major disadvantage of mobile banking is that it is highly reliant upon the internet. If you don’t have internet access, you won’t be able to do any mobile banking. There are also security concerns that are unique to mobile banking.  

Can my mobile banking be hacked? 

It is possible for your bank account to get hacked from your mobile app. If you follow the tips outlined above, you can reduce your risks.  

Which is safer, mobile banking or internet banking from a computer? 

Both mobile banking and online banking are subject to similar risks, and each has its own advantages and disadvantages. Your location, surroundings, and internet connection play a larger role in online banking safety than device type. 

Bottom Line 

Mobile banking is a convenient way to manage your money on the go, but it comes with its own set of security risks. Take steps to protect your mobile bank account, like enabling strong security features, only banking on secure networks, watching out for phishing scams, and monitoring your account for unauthorized transactions.  

Protecting your bank account is just one crucial aspect of keeping your finances and your identity safe. IdentityIQ provides ongoing identity protection and credit monitoring, along with powerful tools like antivirus software, VPNs, and more. Get started with IdentityIQ to reach the next level of digital security.