It is always advisable for a registered business to open a corporate bank account because it makes it easier to keep accurate financial records. Gone are the days when you needed to visit a physical banking branch to do this, as anyone can now access online business banking.
You can open a digital business account from anywhere as long as you have an internet-connected device. But, as with all things digital, security is an utmost consideration. Will my funds be safe? Are my funds insured like typical accounts? The answer to these questions is yes, and this article will go deeper into the security of online corporate banks. We will also show you some steps to keep your finances as secure as possible.
What Is Online Business Banking?
As the name suggests, it refers to a business bank that you can access over the web. You can open a business account online by filling out an application and submitting documentation as you would at a physical branch. Once your account is approved, you are free to transact entirely online; you can send and receive funds, set up recurring payments, etc.
Our modern banking system has existed for centuries, while digital banking is only a few decades old. Yet, the innovations in the latter have been outstanding. You can now access some online-only banks, and most traditional financial institutions also offer digital services.
How Do Hackers Get Access?
- Phishing: They may pose as a staff of the bank to trick unsuspecting customers into giving up their login details. This is why you should never hand over sensitive details like your PIN or password to any person requesting it (banks do not ask for this).
- Social engineering: Hackers can trick the financial institution’s employees into giving them access to the internal network. To do this, they will likely impersonate another employee..
- Fake websites: Some hackers create fake websites that look just like that of your bank and with a similar domain name, e.g., Silverbird.com > Siiverbird.com. They hope the user does not notice and input their sensitive details on the fake website, which they steal to access the real platform.
- Security vulnerabilities: The programmers can make mistakes when building the digital financial platform, which hackers take advantage of to breach it.
How Banks Protect Customer Security
- SSL Encryption: Every communication between their servers and your web browser is usually encrypted with Secure Sockets Layer (SSL) technology, which prevents hackers from snooping in.
- Fraud monitoring: They have tools that detect unusual activity on your account and flag it for potential fraud.
- Penetration testing: They hire skilled IT personnel to perform simulated cybersecurity attacks and evaluate how secure their platform is. If they notice any flaws, then they make immediate corrections.
- Bug bounties: Some institutions offer cash rewards to people who can identify vulnerabilities on their platform so that they can be immediately closed.
- Antivirus and firewall programs: Banks install antivirus and firewall products on all computers connected to their network to prevent cyberattacks.
How Can You Help Secure Your Online Business Banking Activity
- Set up multi-factor authentication: This implies requiring at least two methods of identification before granting access to your account. The first is your login details, and the second is usually a one-time PIN sent to your phone number or email address. This protocol ensures that a hacker won’t get access to your account even if they somehow obtain your username and password.
- Be careful about emails: Hackers may try to impersonate your financial institution and send messages to your email address. Always verify if any email purportedly from your bank actually comes from the support email displayed on the bank’s website.
- Install anti-virus software: Anti-virus software monitors your device for malware and fights anyone that it detects. They help prevent hackers from breaching your computer and stealing sensitive bank details.
- Use strong passwords and change them often: Your password should be a mix of letters, symbols, and numbers that are hard to guess. Also, change it as often as every three months.
- Avoid public Wi-Fi networks: Public Wi-Fi networks are notorious for being insecure, so avoid using your banking apps when connected to them.
- Close monitoring: Keep tabs on your transactions at all times and immediately report any suspicious ones to your institution.
Balancing the Risks and Rewards of Online Banking
Digital finance platforms come with their own risks, especially regarding security. However, they offer many benefits that outweigh the risks, including:
1. You can send payments to vendors or transfer money to other businesses with a few clicks. Otherwise, you will have to visit a physical branch and fill out a money transfer form, which takes more time and effort.
2. You can monitor your transactions in real-time and report any suspicious ones immediately.
3. Some online business accounts integrate with accounting software, making it easy to keep accurate financial records.
4. You can set up recurring payments to pay your bills and avoid any troubles.
5. Digital banking platforms have lower fees than traditional banks. This is a common strategy to attract tech-savvy customers.
Final Words
Online business banking is undoubtedly the future for corporate customers. We have provided details about how hackers can breach a digital banking platform, the steps banks take to prevent that, and additional steps that you can take to keep your account more secure. If you are shopping around for an online business bank, Silverbird is a good platform to choose from, as it supports cross-border transactions with over 30 currencies.