How do hackers do that?

Banks (and most other companies for that matter) will always try to keep quiet about security breaches to avoid the bad publicity - therefore only the worst cases (where a news site reports problems) will tend to be acknowledged.

Data sent between you and an online banking website will already be encrypted. This cannot however prevent your system or their system from being cracked - to protect your system, consider using some of the software already mentioned previously. It is not possible to check on banks' security however (unless you are an accomplished cracker yourself) so keeping an eye on accounts for any suspicious transactions is your best defence - in the case of fraud, most legislation will require the bank to recompense you provided you report issues quickly enough.

Some are, some aren't. It comes down to how proactive a bank's security/IT department are and how seriously management treat security (i.e. if the board don't provide proper funding, the best security department in the world can't do much). However banks do tend to have more money to spend on IT than other businesses and have at least as great an interest (both from the financial and publicity angles) in limiting fraud (i.e. very small amounts may be tolerated but once a scheme starts making a greater impact, countermeasures will be deployed).

In terms of online banking, some banks have changed their sites to frustrate keyloggers (e.g. requring you to use an onscreen keypad or asking for 2 letters from your password rather than the whole passworld).

I just hope they have the courtesy to wait until you wake up before diving in...

 

I personaly try to avoid e commerce at all costs. alruight i occasionaly have to buy soemthing over the net because I cant et it were I live but as for internet banking stear well clear of that. I was considering it until I found a keylogger on my computer Spy anytime pc spy or something it was called. Anyway I had no idea how it got on oe how long it ahd been there for. Anyway I immidetly went to the bank and said my card was lost and had a new one issued. I told my friends it at college and they all think im paranoid, they wont be thinking that if it ever happens to them.

 

I'll say this about that:

When we consumer's experience e-fraud, it is usually a credit card or bank card that is compromised. In the case of credit cards, they will usually forces whoever cheated you to give the money back, or they will cease allowing them to process any more credit card transactions, which is death to an online business. Either way, provided you reported the fraud within 30 to 90 days you will get your money back anyways.

You have less leverage when you use a bank card usually, so stick with credit, if possible, and pay the balance to avoid interest charges, again, if possiblle.

I am no expert, but I always feel safer using a credit card for any transaction, online, or off. You generally are not held liable for fraud -- if you report it in time.

The main thing I wanted to say was to warn you of something, and sadly, it is based on personal experience. I recommend that you NEVER authorize anyone to take monthy payments directly out of your checking account. Long ago I had an account with AOL, and authorized them to take the monthly charges from my checking account automatically. The problem? When I cancelled, they continued to take the money every month. Naturally, I would call up customer serviice, and they would take care of it. then like clockwork, it would happen again the next months. Each month, I would get nastier and more insulting, and each month they would place more demands on me to PROVE that i closed my account. After the second or third month, I called the bank and told them to withdraw my authorization to pay AOL. they said I can't do that. I said "What?!"

To make a long story a little shorter, after about nine months AOL quit charging me for the last time.

It was a nightmare. Don't do it, people, do not ever do it.

The only option I had if it kept up was to simply close my checking account. Anyway, I always hope that my constant string of stupid mistakes will provide valuable lessens to other people. They sure don't seem have that effect on me.

- HandsOff

 

Taking precautions to safeguard your money when buying on the Internet is a must. Personally I have a seperate credit card account which I transfer money to, thus in the event of making an on line purchase and this account is compromised the fraudster would make very lttle out of it.
Another benefit is that when you receive your statement it is very easy to see anything untoward.

Pilli

 

I hate to show my meaner side, but as long as I am re-imbursed, I couldn't care less if my credit card company gets ripped off. Don't get me wrong, I don't want them loosing money, I just want them to have the incentive to keep my personal account information more secure than they do, and to impliment some sensible security measures.

Oh, I forgot to say in response to the "see ID" comment...It's not as if they don't do that already anyways! Come on, guys! does the guy at the register, or even the people that work for the credit card company even know why there is such a rule? I am guessing that the idea is for the cashier to compare the signature with the on on the receipt? Okay, does your signature that you make with the peudo-pen tethered on its restrictive lease on the slippery input pad that is held fix and and un-natural angle even remotely resemble the signature on your card? The only case I can see being made for signing my credit card is if I allow someone to borrow it and go on a shopping spree.

...yes, you can do that (some may not let you). Talk about the fraud potential!

An employer of mine ordered a second card on her account with my name on it so I could buy materials I needed without having to bother her (more than usual). Fine, well I go to make some purchases hand them my card and they tell me I can't use it. I point out that my name is on the card. They say the primary account holder must be present to show her ID. Unbelievable!

Did you know that most cards pay $50 or so to a vender who confiscates a card reported missing or stolen? I think I might just report my card stolen, and go make some poor cashier's day!

Yeah, these people need to think things through a bit, so my heart doesn't bleed for them until they can be bothered to keep pace with society.


- HandsOff (a person really patient with buraucracy in all of its forms)

 

P2K,

Thanks for taking the time to answer my question! (No, the dogs nor the cat bother to wake me up before raiding the Home Bank)

I understand their keeping quiet security breaches, even if I feel it would also wake up the ordinary work a day people to the fact that we all need to just pay a little more attention!

Handsoff, I have had the same experiences, except the bank took offense at the closing of MY account and kept charging me penalties for not having the preferred amount of currency in their bank, forcing them to lose .25 a day on the interest they would have made!

Long story short - I ended up owing them money, how long it would have went on Don't know - ran their horse off the road.

I think we need internet commerce ever more and more, don't want to give it up also don't want to watch people get ruined or businesses to fail .

I would guess this is just part of a long big growing pain to the next level of commerce, how lucky for us!