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Increase in Digital Banking Raises Consumer Data Privacy Concerns

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The World Retail Banking Report of 2020 revealed that 57 percent of the customers prefer online banking to physically walking into a branch. You must enjoy the convenience of having all your banking activities at the tip of your fingertips. Online banking is all about convenience and offers a gamut of services like transferring funds, accepting funds, paying credit card bills, placing orders for checkbooks, applying for loans, and even planning investments. 

Online banking also implies that users’ vital personal and financial data is stored and used by the banks. However, this raises data privacy concerns as well. How protected is your data, and how much of it is kept private? A KPMG study carried out in 2020 shows that 87% of consumers feel that it is a basic human right to ensure data privacy. However, 68% said that they don’t expect companies to remain ethical while selling personal data. 

The same study also showed that approximately 75% of Americans understand that using the same passwords for multiple accounts and connecting to public Wi-Fi are dangerous activities. Nevertheless, over 40% still do them. These behaviors relate to how you, as a regular consumer, can protect yourself. 

How to Manage Your Financial Life Safely? 

As Forbes reports, digital banking is undeniably convenient, but clients should know some things before using it. The first thing to learn is that you have rights and varying degrees of control over your data. 

In Europe, GDPR grants more control to users and limits the way companies manage their clients’ data. In the US, there are instructions on how financial institutions should operate. For instance, they must inform clients about the type of data they collect and share with third parties. Specifically, there also should be an option for users to opt-out of having their data shared. 

Besides these legal guidelines, you can do a lot as well to ensure that all your transactions and operations go smoothly. 

Be Careful with Your Passwords

Passwords with numbers, symbols, and both upper- and lower-case letters make you safer online as it’s difficult for hackers to guess them. You should never use the same password and username for all your accounts. Make sure to keep changing your passwords regularly, at least once every three months. Never share your password or your unique identification number with anyone. There have been occasions when fraudsters have posed as bank officials asking for passwords or dropped emails carrying links asking for other identification information. 

Shopping Habits to Avoid

Avoid using options like “easy pay” for payments or “one-click ordering.” It’s better to spend a few seconds entering your username and password rather than months recovering an amount lost due to credit card fraud. Also, use the latest version of the internet browser as these are better equipped with the latest technology to protect your data online. 

Try to avoid shopping or accessing your bank websites while connected to public Wi-Fi. However, you might be compelled to make an unexpected purchase from, say, a coffee shop. That’s when you might have to use public Wi-Fi, which is considered to be unsafe. It is best to employ tools like Atlas VPN in situations like this. They reroute your traffic through a secure and encrypted tunnel. Thus, no one will be able to snoop or steal your data while it travels to its destination. 

Visit Only Secure E-commerce Websites

Secure online transactions are assured by websites that begin with “HTTPS://.” You can’t trust websites that don’t have the “S” following the HTTP on their URL. Also, use only trustworthy and reputable online payment gateways like PayPal for all your online transactions. Not only do these sites take every possible precaution to make sure that your transaction is safe, but they ensure services for dispute resolution as well. 

Use Strong Anti-Virus Solutions and Firewalls 

Ensure that you use the latest version of an anti-virus tool and firewall program for stronger security and protection. Don’t ignore update alerts from your anti-virus and firewall programs when they appear. That’ll make sure that your anti-virus and firewall program has the latest capabilities to counter scams and hacking tricks. 

Ensure Email Security and Protect Personal Information

Be careful when opening email letters from unknown sources. In some cases, email senders might pretend to be from a reliable company. Typically, fraudsters pose as bank institutions and inform users of a problem that needs immediate attention. They will require your personal details or transactions to resolve the issue. It is crucial not to fall for these scams. Contact your bank or other financial institution directly. Then, find out whether the email is legit or not. 

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