What are the safeguards in place with regards to online banks?


Quick Answer

Some of the safeguards in place with regards to online banking include passwords, various authentication requirements, non-disclosure agreements, use of firewalls, encryption and timeout features. Many people use online banks because they provide convenience and safety.

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Full Answer

Online banking has become popular in most countries because of its flexibility and time saving features. For security, most online banks have a timeout feature that automatically logs out a user when their account has been dormant for a given period of time. The banks also encourage customers to use complex passwords when creating accounts. This makes it difficult for malicious people to hack into accounts.

All reputable online banks also use web encryption to ensure safety. Encryption makes it impossible for fraudsters to impersonate the bank's website. Websites also have firewalls that prevent software or programs that may gather delicate information that can be used to defraud clients.

Online banks usually collect all required client information during registration and require that clients do not disclose any information to anyone afterwards. This means account information is never disclosed to a third party regardless of the circumstances.

These institutions equally encourage clients to frequently log into their accounts and track all activity. If anything unusual is detected, clients are encouraged to report it as soon as possible so that necessary measures can be taken to prevent any threat.

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