How Safe is Your Banking Information?

Let’s face it, if you’re going to have any level of financial success in this world, you’re going to need the help of a banking institution to get you there. If for no other reason than as a safe place to hold the money you amass, the bank or credit union provides its members with many benefits that help make them indispensable.

A Tempting Target for Identity Thieves

Of course banks are naturally going to be privy to all sorts of juicy information that is exactly what identity thieves are looking for. From your social security number to your bank account and credit card numbers, banks hold a wealth of knowledge that makes identity theft all seems worthwhile if a thief can get their hands on it, but can they?

For the most part, your banking information, like your actual money, is as safe as it can get as far as the bank and its responsibilities are concerned. Extremely high-levels of encryption prevent any from intercepting transaction information that occurs between you and your bank when you are online. The strongest firewalls and server security are used to hide your information tight from prying eyes while it is not being used. Bankers themselves are carefully screened and watched, both in and sometimes outside, the work environment in order to make sure they aren’t involved in much shady. All of these precautions give the banks a pretty strong safety record when it comes to keeping your banking information safe.

A strong safety record, but not a perfect one.

No System is Perfect

Banks have had their failings in the past despite their advanced technological and practical precautions. Laptop computers with sensitive information go missing, or firewalls are breached, yielding a regular king’s ransom in treasure for the hackers. Like plane crashes, however, these events are isolated and so rare as to make choosing not to bank being like choosing not fly as an unsupportable a decision. As Superman would say; “Statistically speaking, it’s still the safest way to travel.” Likewise, banking is statistically the best way to keep your money safe.

Security Flaws Are A Shared Responsibility

The majority of identity theft when it comes to banking information comes about due to the consumer not quite properly holding up their end of the security bargain. Being glib with punching in PIN numbers at the grocery store or ATM, losing wallets and purses, having bank statements causally thrown in the trash rather than properly shredded – these are methods that identity thieves use to get hold of vital and sensitive information. Your banking information is largely as safe as you choose to keep it by your own habits and methods for protection. To help make sure that your banking information stays safe and secure:

• Sign up for electronic statements: Most banks will now allow you to get your statements electronically rather than in paper form mailed to your home. Not only does this help ’save the trees’, but it also is a more secure method of dealing with this sensitive information.
• Shred every ounce of paperwork your bank ever sends you: Even if it’s an innocuous-seeming letter about something unrelated to your account, pass it through a good cross-cut shredder before putting it in the trash.
• Sign up for a BillPay service through your bank: To avoid having to put a check in the mailbox and have it travel to its destination. Most banks now have accounts set up with the major utility companies in the country, your area, as well as the credit card companies and other creditors that usually have payments being sent to them. They will debit the money directly from your account and electronically pay your bills.