How safe is mobile banking? And how can you make it safer?

WASHINGTON — It’s one of the modern conveniences that actually is convenient:
banking on your cellphone. Forget to make a payment, or accidentally overdraw?
You can fix it in a minute. But how safe is it, really?

It’s the No. 1 fear people have about mobile banking, Bankrate.com says, quoting a study from Javelin Strategy and
Research. But it’s safer than people think, Bankrate says, because banks have
spent plenty of money in making sure the security is no joke. And many banks
and credit card companies will cover 100 percent of your losses if you are
hacked.

There are three ways to bank with your phone, and Bankrate says each one has
strengths and weaknesses.

  1. You can get alert texts from your bank if your money is running low
    or your credit card balance is running high, or get your balance at the speed
    of a text. Just know, Bankrate says, that your bank will virtually never text
    you under any other circumstances, so any unsolicited texts claiming to be
    from them are almost certainly scams.

  2. Using a web browser on your phone allows you to do more, Bankrate
    says, and so far it’s probably even safer than using a computer — but that’s
    only because hackers haven’t focused on the mobile market yet; that could
    change.

    In general, just be safe and smart, like you are on any computer: Don’t click
    links in emails, and don’t enter your passwords during any transaction that
    didn’t start with you going through the front door of your bank’s website.

  3. Finally, banking apps link you straight up with your bank’s computers.
    They’re fast; they’re designed for a mobile screen and they use the same
    security algorithms as your bank’s own computers. Just be sure to sign off
    every time — and don’t lose your phone.

Whichever method you use, Bankrate says, make sure you need a password to
unlock your phone, and never stay logged in — make sure you log out, or your
bank logs you out, every time you’re finished.

Banks surely have an incentive to make sure mobile banking is safe: Mobile
banking increased 40 percent in 2013, Bankrate says — that’s 40,000 new
customers a day.

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