FDIC Gives Advice for Online Banking

FDIC Gives Advice for Online Banking
Friday, March 19, 2010
By Danielle Robson

One of the advantages of modern banking is the fact that consumers can access their account information online.

However, a recent report from the Federal Deposit Insurance Corp. notes that there are protections consumers should pursue in order to make sure their online banking experience is a safe one. Not doing so could lead to identity theft, which can damage a person's credit report.

The FDIC said that consumers should check their accounts through the internet a couple of times a week. Doing so could alert them to someone having gained unauthorized access to their checking or credit card accounts.

"This is important, because the sooner you can detect a problem with a transaction, the easier it should be to fix," said Michael Jackson, associate director of the FDIC's technology supervision branch.

The FDIC also noted that using a credit card offers a bit more protection when making purchases online. Rather than having their account drained right away by a purchase, a credit card offers consumers some time to pay off a bill. That also gives them greater flexibility when it comes to disputing purchases.

The Federal Trade Commission, and other federal agencies, has also given their own advice for dealing with online financial transactions. Consumers should make sure they deal with reputable merchants online and should avoid giving out personal information, such as their Social Security number.

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