Is Digital Banking/Online Banking Safe in India?

Digitalisation in India's banking sector has made steady progress over the past decades with the introduction of NEFT/ RTGS/IMPS/UPI payments, NetBanking services, Mobile Banking, WhatsApp Banking, Video Banking and so on.

While on the one side, it has made people's lives easier, it has also exposed them to new threats. But with banks regularly upgrading their safety protocols, these threats have been largely neutralised. Let's understand how safe Digital Banking is and what safety measures one should take while using Digital Banking services.

How Safe Is Digital Banking?

The bank uses several security measures to make Digital Banking safe and secure.

• Two Factor Authentication

Any Online Banking transaction requires two-level verification to complete. For online purchases through Debit Card, the authentication process begins with providing CVV and OTP for performing online shopping or other types of online transactions. The second level involves the bank sending an OTP to your registered mobile to confirm the transaction.

You'll also receive an SMS confirming the transaction. This two-factor authentication process minimises the chances of fraudulent transactions.

• High-End Encryption

Most banks use encryption technology to ensure the confidentiality of data and identity protection. In India, one of the leading banks like AU Small Finance Bank is strongly committed to protecting the privacy of its customers & takes reasonable measures to protect the confidentiality of the customer information and its transmission through the world wide web.

• Device Authentication

Shops typically use a Point of Sale (PoS) machine to swipe Debit Cards/ Credit Cards of the customer to receive money digitally. These machines require customers to enter their PINs for device authentication. Device authentication helps the bank to secure the device from being tamper proof and to avoid data leak / frauds

• Real-Time Alerts

The bank sends real-time alerts through SMS on a customer's mobile phone or email to inform about the transactions that occurred in that person's Savings or Current Account. So, even if a suspicious transaction occurs, the customer is immediately alerted to take corrective actions.

• Biometric Authentication

Human beings have physical characteristics that are unique and differentiable. Biometric authentication uses non-transferable features like fingerprints, face, and voice to create a security layer for each user. So, whenever someone wants to access any banking solution on Mobile Banking App, the person must do fingerprint scanning. Or, if someone wants to open a bank account online, several banks rely on AI-based facial recognition for authentication.

• Secure Socket Layer Encryption

SSL or Secure Sockets Layer secures customer data that is transferred between a web browser and a server. An SSL certificate ensures that all data passed on between the browser and server is private and it is free from attack. To make online banking safe for its customers, all banks are required to have SSL Certificates.

Safety Tips for Digital Banking

While banks play their role in keeping your account safe, it's up to us to ensure our accounts' safety as well. Here are some valuable tips.

• Change Password Regularly

The older your password gets, the greater the chances of your password getting compromised. Therefore, it's crucial to change your password at regular intervals. Besides, use strong passwords with a combination of alphanumeric and special characters. Keep the password unique and sufficiently long. Avoid including your name, date of birth or mobile number in your password, as they are easy to guess.

• Avoid Public WiFi

Public WiFi zones can be vulnerable to hacking and other cyber frauds. So, avoid connecting your mobile phone or laptop to a public WiFi system, especially if you use the same device for Digital Banking. Instead, use your private home internet network or your personal cellular data.

• Opt for a Good Antivirus

A good antivirus software program can go a long way in securing your computer and mobile phone. Install and regularly update the antivirus on your devices to keep them virus-free.

• Beware of Phishing Emails

Phishing emails are one of the most used methods of scammers to target unsuspecting victims. So, keep a vigil on emails declaring your account is closed, you won a lottery or similar statements. Never open any attachment of an email that you don't trust or are unsure of. Never click on the link provided in such emails.

• Refrain from Auto Saving your Credentials

Saved passwords can be vulnerable to hacking attacks. So, don't auto-save your credentials. Instead, type your information every time you want to perform a banking transaction.

Key Takeaways:

• More people will opt for Online Banking as internet penetration increases.
• The banks are also doing their bit by providing efficient Digital Banking services while ensuring the safety and security of customers' data. But it's up to us as well to ensure we use these services responsibly.

At AU Small Finance Bank, we have strong security measures in place including fingerprint-based login, AI-based facial recognition, mobile number authentication through OTP and others whenever a user wants to use our Digital Banking channels like AU 0101 App, AU 0101 NetBanking, AU Video Banking, or WhatsApp Banking.

Read More: Digital Banking Frauds and How You Can Safeguard Yourself from Them