11 Sep Is online banking as safe as going in-person?

Q. Which is safer — using a bank in person or online banking?
— Customer

A. That’s a tough question.

There are potential advantages and disadvantages to both, but in terms of safety, a lot will depend on how you handle your information.

First, let’s talk about using a bank in person.

You may need to carry cash, which is always something of a risk. You would then be using checks, which could be a problem if a con artist gets their hands on the check and changes the payee or the amount, or both. (That’s called check washing, and using a gel pen is supposed to make it impossible to erase, or “wash.”)

You’d also have to wait for your monthly bank statement to come in the mail if you don’t go online. If there’s any fraudulent activity, weeks could pass before you’re aware of it.

Now, online banking.

It’s convenient, for sure, but you understandably don’t want anyone to access your account. That’s where good passwords and two-factor authentication come in. You also don’t want to check your account information using public Wifi, and you shouldn’t have your passwords stored on your cell phone, tablet or computer because anyone could then, in theory, log in to your account.

You also have to be aware that many people are targeted with scams where they are tricked to transfer money online to a crook. If you don’t bank online, that won’t happen.

But overall, if you protect your online accounts, it’s a perfectly safe way to bank.

Just make sure the bank or credit union is federally insured with Federal Insurance Deposit Insurance Corporation (FDIC), which covers amounts deposited into any account up to $250,000.

You can ask the bank directly, or you can call the FDIC call center at (877) 275-3342.

Email your questions to .

This story was originally published in September 2024.

NJMoneyHelp.com presents certain general financial planning principles and advice, but should never be viewed as a substitute for obtaining advice from a personal professional advisor who understands your unique individual circumstances.