Friday, July 26, 2013
Introduction
Online Banking is an internet financial service that
enables members to perform various financial transactions, with the exception
of cash transactions, from a personal computer at home, work or school. Online
banking can be accomplished through the internet with specific account
information and a consumer password. Many banks with online banking such
as UTI Bank, State Bank of India
Online banking is both secure, and unlike
person-to-person banking, online banking is available 24 hours a day, 7 days a
week. Most online banking institutions have several other advantages, allowing
you to keep track of your cheque book, transfer money between accounts, and
even pay bills online.
Now-a-days people don’t like standing in lines after work
just to deposit a cheque, applying for financial services, or setup a new
account. Let Internet banking provide the convenience needed to make your
banking easier and quicker.
Internet banking has become widely accepted throughout
the world. Because of the Internet, the banking industry is now able to reach
its users right from their homes. Internet banking is able to provide services
to individuals, small business and corporations online. Don’t hesitate to take
advantage of Internet Banking. Internet banking uses the most secure structure
that’s available to protect its users.
Why Online Banking?
Unfortunately, banking is a "necessary evil"
that can take a large chunk out of already busy schedules. Visiting a branch or
ATM, paying bills by paper check (and mailing them) and balancing a chequebook
all can be time consuming. Banking online, by its nature, can automate many of
these processes, saving you time and, in many cases, money. You can access your
account and do your banking when (and where) it is convenient for you.
Different Forms of Online Banking
Some online banking systems are software based--meaning
you will need software such as Quicken or Microsoft Money in order to access
your account (and you will only be able to handle your banking from your own
computer). Other systems are Internet based--meaning you can access your bank
account from any computer that is connected to the Web--from your home, office
or while traveling.
Is Online Banking Safe?
Some of the most frequent questions regarding online
banking involve the issue of online security. "Will my money be
safe?" "Can someone steal my information and get access to my funds?"
"Could a thief find a way to clean out my bank account?"
All are valid questions, since when you commit to an
online account you leave the "security" of doing your banking
person-to-person in a branch and move it to the electronic age. While we've all
heard stories and rumors of e-thieves stealing credit card numbers, the reality
is that online banking and transactions are much more secure than the media
often makes it out to be.
Online banks take security especially seriously. All
online banks and lending organizations have their security procedures and
policies posted prominently on their web sites. Go and compare--you'll likely
find that every one uses the most advanced Internet security systems available
to protect you and your money. You can feel confident that these companies will
protect you--and themselves--from electronic thieves as much as possible. Their
business depends on it.
Features
There are many features that are available with Internet
Banking. For starters, Internet banking provides many of its services through
the Internet, no need to leave your home. Other features are:
- Quick and easy
- 24 hour banking
availability
- Secure systems
- Transactions are
quicker
- Online payment
capabilities
- Transfer of
funds
- View your
account information
- Not restricted geographically
Additional Features
See deep in to the past (or the
near future)
Take a quick look at your account
balances or examine your past months' banking in as much detail as you like.
You can see transactions going as far back as July 1998, possibly further.
Locate a particular transaction,
or make balancing the chequebook easier by sorting your banking details. You
can sort by date, amount, serial number, and more.
View your planned payments and
transfers, up to 6 months into the future.
In an instant you'll know exactly
where you are, how you got there, and what's coming up.
Pay Anyone - it's never been
easier
You can make a one-off payment to
anyone immediately (or up to 6 months in advance). Imagine the possibilities -
you can pay your power bill, the plumber and even the neighbour who mows your
lawn, all online, whenever you want to.
It's also easy to set up
automatic payments with online banking. You can quickly set up regular payments
between your own accounts, or to other bank accounts e.g. for your rent or hire
purchase payments. You can even amend, suspend or cancel your automatic
payments online. And it's cheaper than doing it over the phone or visiting a
branch!
Move your money around
Transfer money between any of
your accounts, or pay your credit card. You'll be able to see the results
straight away - giving you the reassurance that it's done.
Download your activity
Keep your accounting and
budgeting up-to-date. You can download your account information for use with
personal spreadsheets or financial management software such as Microsoft® Money
or Quicken®. Choose between .csv or .qif file formats.
Pay tax
It's quick and easy to pay your
tax bill online. Whether you're an employer making staff PAYE deductions, a
business paying the GST bill or simply making a provisional income tax
installment - choose from over 25 tax types available for online payment.
Customize your online experience
Have some fun with your online
banking. You can give nicknames to your accounts and the people you pay -
helping you to tell them apart more easily when you bank online.
Services
It really depends on your Internet bank. As a general
rule, many of them provide the conventional checking and savings
accounts. In addition, many of them also provide: Check card services
- Credit card
services
- Business banking
services
- Corporate
banking services
- Wire transfers
- Loans
- Retirement plans
- Student banking
Security
Early warning – recognizing when
something might be wrong...
If your
computer has already been infected, it may be acting ‘weirdly’ – e.g. random
dialing or dialing strange numbers, unusual icons appearing on your desktop or
Start menu, extra toolbars, programs locking up frequently, or your Homepage is
changing. This may also mean your online security may be compromised by
something that’s been downloaded to your machine. It is recommended that let
your computer be checked and serviced by a trusted computer professional.
If you think your online security has been
compromised, it is important that you contact bank to reset or suspend your
online banking password (and any other online relationships e.g. auction sites)
immediately. You should not use the suspect computer, until it has been checked
and cleared by a trusted computer professional.
Important things you can do to
protect yourself and your computer...
Online banks
throughout the world have recently been the targets of a number of frauds,
which attempt to take advantage of customers with poor security systems. These
frauds enter desktop computers through spam emails or via web surfing. To
protect yourself and your computer, it is recommended to take the following
steps. If you do not feel confidant installing and maintaining your own
software, refer to a trusted computer technician for help.
Install
anti-virus software - you can help protect your computer from viruses that
could damage your computer or your programs by installing anti-virus software.
To maximize your protection, check that your anti-virus software also includes
functionality to detect and prevent spy-ware, worms and dialer programs being
downloaded.
To be fully protected, your anti-virus
software should be regularly updated to detect and prevent infection from new
viruses.
You may wish to consider one of the following
online suppliers of anti-virus software although several others are available
on the Internet.
Install
a personal firewall - Firewall software and/or hardware helps provide a
protective shield between your computer and the Internet. This barrier can help
prevent unauthorized people gaining access to your computer, reading
information from it or placing viruses on it while you are connected to the
Internet. You can find firewall hardware or software at most computer stores
nationwide. Keep
your browser and operating system up-to-date - From time to time security
weaknesses or bugs are found in browsers and operating systems, and 'patches'
are issued by the software company to make sure these are fixed as quickly as
possible. You should make regular checks on your software vendor’s website, (or
request an alert if available), and apply any new security patches as soon as
possible to ensure you have the most updated security features available. Avoid
running programs or opening email attachments from any source you don't know or
trust - You should not install software or download any files from websites
(e.g. programs, games, screensavers, mp3) that you aren't completely sure about.
It is also recommended that you scan all
email attachments for viruses and avoid opening any from people or organizations
that you do not know or trust. However some viruses forward infected mail to
entries in an address book - therefore you can also get an infected attachment
from someone you do know. If you are unsure what an attachment is, no matter
the source – do not open it.
Be particularly suspicious of any email that
asks you to respond with personal information, or requests you to pay bills or
log onto a secure service. Always delete your junk mail.
Beware
of online employment scams - Some customers are falling prey to a
sophisticated online scam. In this scam, criminals post fake job advertisements
on online recruitment sites or in newspapers. The advertisements are from false
overseas companies looking for people to act as NZ distribution agents. These
agents are to have a NZ bank account into which they receive funds on behalf of
the company and then wire it overseas, retaining 5-10% of the funds as their
commission.
Unfortunately, often the funds being
deposited into the NZ agents’ account are stolen. The criminal, in this case
posing as an overseas company acquires his funds by sending out a spam email or
suchlike to online banking customers.
This email contains a virus or Trojan keyboard logger, which once opened, installs itself onto unprotected customer computers without their knowledge. This software captures the customers’ keystrokes, including online banking password details, and sends them back to the criminal. The criminal is then able to login to the customer’s online banking service and transfer funds directly to the recruited agent’s bank account, effectively making them an accessory to money laundering.
This email contains a virus or Trojan keyboard logger, which once opened, installs itself onto unprotected customer computers without their knowledge. This software captures the customers’ keystrokes, including online banking password details, and sends them back to the criminal. The criminal is then able to login to the customer’s online banking service and transfer funds directly to the recruited agent’s bank account, effectively making them an accessory to money laundering.
Remember, if a job offer seems to good to be
true, it probably is. If the job is such that you are to receive payment for
just transferring money through your account, you should contact the police
immediately.
Be
cautious when using public or shared computers - If you access your
accounts using a computer in a cyber café, a library or your workplace, try to
ensure the computer has the latest anti-virus, firewall and browser software
installed.
If you were in any doubt about
the security of a computer, we would recommend you don't use it to access your
secure information.
What
can I do to protect my Online Banking password?
We use your Customer ID and
password to identify you online – your password acts like a key to your online
information. It is very important that you protect your password at all
times…as much as you would for your cash or your chequebook!
Never
disclose your Online Banking password to anyone. Do not write it down or store
it in a file on your computer or mobile phone – you should also not use
'form-fill', AutoComplete or similar 'remember this password' storage functions
in your browser settings.Select a password that is difficult to guess
- do not use your name, address, birth date, your telephone number or the name
of a child or pet.
Change your password regularly. Never use the
same password for other web services e.g. email, online auctions, shopping
sites, or subscription services.Before entering your Customer ID and/or
password details, you should always verify that the URL displayed in the
browser is the correct one. When performing your online transactions,
always ensure that the URL is preceded by "https".Ensure that no one can see your keyboard when
entering your Customer ID and password. This is especially important when you
log in from a work environment.Always logoff when you've completed your
online banking, or even if you have to leave your computer for a short while.
You should also shut down your computer, when it's not in use, to prevent any
unauthorized access to your computer.
Finally, check your online
transactions and statements carefully. If you note anything suspicious, change
your password, and notify the bank authorities immediately.
What Information will be collected?
Information they gather is of two types.
1. Personal information, provided
voluntarily when you complete an online form or request for service; and
2. Aggregated information collected by
our web server or third party systems we subscribe to for site traffic
information.
For e.g.
The number of site visitors (gathered
via IP address logs) The date and time of visits The number of pages viewed Technical information on browser
connections Traffic patterns
This is anonymous statistical data and no
attempt is made to identify users or their individual browsing activities. We
use this aggregate data to evaluate our website performance and measure the
interest in various areas of our site.
Information disclosure
Banking authorities may release information
about you when required to, or permitted by law.
They may also disclose information where you have
authorized the bank authorities to, or where disclosure is connected to the
purpose for which it was collected - e.g. online applications. You have the
right to access and correct this information subject to the provisions of the
Privacy Act 1993.
They will not however, use your personal information for
any purpose that is not related to the products or services we provide to you,
or for any purpose for which you would not reasonably expect us to use the
information.
They may share the information they gather in
aggregate form e.g. survey or tracking information, with advertisers and other
partner. However, they will not sell or disclose personal information about you
as an individual to any third party or entity outside the organization or it's
related companies for marketing purposes.
Cookies
Cookies are small pieces of information,
which can be stored on your hard drive (persistent cookies) or in memory
(session cookies). The cookies we send to your PC cannot read your hard drive
or command your computer to perform any action.
Two types of cookies are used here they are:
Persistent cookies - used to identify and
provide personalized features such as choosing which page you would like to
make your start page - and for tracking traffic patterns to and from our site.
Session cookies - used as an integral part of the identification process for our Online Banking service. This is for security purposes to determine that you are who you say you are and to provide you with your confidential account information during an online banking session. No personal information is kept in the cookie and the cookie is not written to your hard drive. When you log out of your online banking session the cookie is no longer valid and is discarded when you close your browser.
IP addresses
The bank logs the IP address or the location
of your computer on the Internet. This is for system administration and
troubleshooting purposes.
When you provide information
When submitting an online form relating to a
service, they will request specific personal information such as your name and
address, title, existing bank relationship, your email address and a contact
phone number. This information is necessary in order to action your request,
and so that they can contact you if needed on issues relating directly to the
product or service. Where confidential information is included in the form,
they will use encryption to ensure that the information you send to us across
the Internet is secure.
As part of Online Banking registration process, they
invite you to provide additional information, namely your email address and a
name with which you would like to be greeted during future online banking
sessions. Providing this information is optional for you, and you can change or
remove these details at any time.
From time to time, bank may collect
additional personal information from website users in connection with optional
competitions, surveys, or special offers.
Email address
If you are a registered customer for Online
Banking, bank may use your email address to advise you of any upgrades or
changes to this service.
They may also use your email address to
periodically send online surveys, or promotional emails about product and service
offers. Your email address may be disclosed to selected third parties strictly
for the purposes of any online surveys or promotional emails. Whenever they
send you a survey or promotional email, we will give you the option to opt-out
of further emails of this nature.
Security of captured data
To prevent unauthorized access, maintain data
accuracy and ensure appropriate use of any customer supplied information, bank
had put in place physical, electronic and managerial processes to protect the
information.
For example, when capturing customer information through
Online Banking services, it is passed through a secure server using encryption
technology to ensure that this information is protected when being sent over
the Internet.
Additionally, all stored customer information
is protected from unauthorized access through the use of secure passwords, user
logons and other security procedures.
Online Banking Advantages
- In general, you
will find lower fees and higher interest rates for deposits due to the reduced
cost of operating online and not needing numerous physical bank branches.
- You will have
easy access to account information and transactions, due to the fact that
any Internet-enabled computer can become your "bank terminal."
- You will
generally have up-to-the-minute current bank account information due the
automation of most systems.
- You can transfer
funds electronically between accounts.
Potential Online Banking Disadvantages
- You will need to
mail (or have direct-deposited) any deposits to your bank account.
- Online banks
generally do not have their own ATMs, although you will be able to access
ATMs provided by many other banks. Most online banks offer a rebate for
ATM usage. Most online banks do not have any
physical locations for you to visit if you prefer to transact your
business in person and face-to-face.
- Customer
Mindset: Many customers are afraid of the new technology. One fear is that
the credit card number may be captured and misused for other purchases.
Lack of time, and lack of interest could be other reasons.
- Access Casts: To
the average Indian, the Internet is not very attractive because of high
telephone rental, access charges and low access speeds.
