Online banking is a great way to manage your bank accounts with little to no stress on your bank visit schedule. These days more and more people rely on digital platforms to check their bank accounts, transfer money, and make investments.
However, this convenience comes at a price of great risk. The reported incidents of fraud related to payment cards, phishing attacks, and identity theft put our transaction security in question. Moreover, research has attributed 93% of bank fraud to online banking. This warrants that the safety of online transactions should be taken more seriously.
The VPN is a type of technology that secures information by initiating a safe, encrypted connection between your device and the internet. It acts like a shield, masking your IP address and keeping all your data private. Every time you send and receive information using a VPN, it will encrypt that information. It would, therefore, be very hard for hackers to intercept this information.
In fact, modern financial online applications already have an integrated method of encryption and security. They take effect, however, only if you are signed into your account. The biggest risk, therefore, lies at the login stage of your account where all your login details can easily be intercepted.
The Growing Risks of Online Banking
Whereas the digital age revolutionized methods for managing money, it simultaneously confronted one with greater vulnerability than ever regarding financial information. Cybercriminals use various tactics to find and utilize loopholes in unsecured connections.
- The attackers love to use a public Wi-Fi network as an entrance option to steal private data. That is because, by default, they are super insecure. Any person who has basic knowledge about hacking can intercept information on an open Wi-Fi network. What this means is that without a VPN, logging into your bank account or making a financial transaction on public Wi-Fi exposes you to the risk of having your financial details stolen.
- Other frequent threats include phishing attacks. These are carried out through cybercriminals using fake emails or the creation of fake websites that look the same as legitimate banking sites. Without encryption, it becomes rather easy for hackers to steal your login credentials, credit card numbers, or even your identity.
- Further, man-in-the-middle attacks are on the rise. Hackers insert themselves between your device and a financial platform. By doing so, these types of attacks allow the cybercriminals to intercept the communication between you and the bank and change it without your knowledge.
How VPNs Protect Financial Transactions
- Encryption.
If you connect to the Internet using a free VPN, all your data is encrypted. Encryption is one of the effective ways to prevent the theft of data. Basically, it scrambles your information into unreadable code. Decryption is performed using a special key on the receiving server.
For example, suppose you are accessing your smartphone to transfer funds or pay bills. In case you are connected to the internet via a VPN, even if somebody intercepts the data, it would be encrypted and unreadable. Not just sensitive banking information, but a VPN helps shield overall online privacy, hence becoming a strong tool in safeguarding finances.
- Hiding the actual IP address.
Every time you access your bank’s website, your IP address helps the site identify where you are located and what device you are using. Furthermore, this information can be utilized by cybercriminals to track you down or conduct malicious activities. A VPN masks your IP address, and a third party will only perceive the IP address of the VPN server you are connected to.
This allows you to stay anonymous on the Internet. Your personal data, such as your IP address and geo-location, is hidden. It gets tough for hackers or any other person to track your activities. Anonymity is one of the key factors when it comes to financial transaction security over the Internet.
- Public Wi-Fi network security.
We sometimes use public Wi-Fi networks when we want to connect to the Internet from a cafeteria or shopping mall. However such networks can be dangerous because they allow others to intercept the data. A VPN increases the level of your security by creating a safe tunnel between your device and a server, to which all your traffic goes.
- Block malicious websites.
A VPN can also ban malicious websites. This is really helpful if you use the Internet frequently to perform financial transactions. Some malicious sites steal account information using phishing schemes. Such attacks can be prevented well in advance by blocking malicious resources.
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Best Practices for Safe Financial Transactions
While a VPN does a fine job of protecting online banking and other financial transactions, there are other practices you can do to add even more safety for your information.
- First of all, make sure your banking platform uses HTTPS encryption. The “s” at the end of HTTPS means this website is secure. It uses encryption so that your data will remain protected during transmission. Even with a VPN, logging into a site that doesn’t use HTTPS can put your information at risk.
- Secondly, avoid accessing your financial accounts through public Wi-Fi networks without a VPN. These networks are just hubs where cybercriminals intercept sensitive information. If you have to use public Wi-Fi, make sure the VPN is on before accessing your financial information.
- Always log out after performing transactions. It is not enough just to close the window of a browser or application, as that leaves the session open to be exploited.
- Another crucial step is enabling two-factor authentication (2FA) on your banking apps and accounts. As an additional layer of security, it requires verification of identity through a second method, such as sending a code to your mobile, to help make it all that much harder for hackers to get to your account, even though they have login information.
- Finally, change your passwords from time to time, and don’t use the same password on various platforms. Of course, a hard and unique password on each financial account could make the work of cyber criminals much more difficult.
Conclusion
Using a VPN when banking online and conducting financial transactions is a simple step to ensure your security. It encrypts your data and protects you from attacks over public Wi-Fi networks, phishing scams, and malware. The Internet is becoming an increasingly dangerous space today, but with a free VPN, you can reduce your risks and manage your finances safely.