There are plenty of things that have changed since the invention of the internet. One of these is how we bank and access our accounts. You used to have to go into a local bank branch to make deposits and withdrawals. Now, you can take a picture of a check and deposit it from your phone through online banking.
An increasing number of people around the world use some form of online banking at least once a month. People have never had such convenient account access. But, what cost comes with this convenience?
In 2021, account takeover fraud increased by 90%. New account fraud jumped a whopping 109%. As the ease of online banking has increased, so has banking-related cybercrime.
If someone breaches your Facebook account, it can be a real pain. But, if a hacker breaches your bank account, it can be devastating. It can mean significant losses. Losses that you may not be able to recoup from your financial institution.
In this article, we’ll take a look at the mistakes people make that leave their accounts at risk. Then, we’ll go over some important tips on how to keep your bank account better protected.
–Updated September 2025–
The Growing Threat: 2026 Online Banking Fraud Statistics
The landscape of online banking fraud has evolved dramatically since 2021. According to the Federal Trade Commission, Americans lost over $10 billion to fraud in 2023, with banking and payment fraud representing a significant portion of those losses.
Recent trends show:
- AI-powered phishing attacks have increased by 1,265% year-over-year, making scams more sophisticated and harder to detect
- Mobile banking malware in 2024 the statistic reported 248,000 mobile users affected that is a 3.6-fold increase.
- Vishing (Voice phishing) surged 442% in late 2024
- The FTC reported 12.5 billion in total foroud losses in 2024 (25% increase yearr.
For Idaho residents and businesses, staying vigilant is more important than ever. Learn more about protecting your business from evolving threats in our Cybersecurity Corner.
Mistakes That Allow Criminals to Access Your Account
Not Enabling Two-factor Authentication
Two-factor authentication (2FA) is a simple process that packs a big punch. When you enable this setting in an online account, it requires an extra step to gain access. That step usually consists of receiving a one-time passcode (OTP) by SMS and entering that at login.
Many people make the mistake of leaving this disabled. They either don’t know it’s there or they think it’s too inconvenient. But leaving this setting off makes it much easier for a bad actor to breach your account.
Falling for a Phishing Scam
There are several types of phishing scams that target online banking. Cyber criminals send emails that look like they come from your bank. They’ll even promise incredibly low rates on credit cards.
Other scams can involve warning you of unauthorized account activity. But when you click the link to log in, you’re actually on a fake page. One designed to look just like your normal bank website.
These are just a few ways that scammers can get your online banking login details. Once they have them, they’ll act immediately to get whatever they can.
Using Easy-to-Guess Passwords
If your account password is easy to remember, it’s also often easy to guess. Using weak passwords is a common mistake that enables many cyber criminals.
Some best practices for passwords include:
- Make them at least 10 characters long
- Include at least one number
- Include at least one symbol
- Include at least one upper-case letter
- Don’t make them personal (e.g., don’t use your birthdate, etc.)
Downloading Unsafe Mobile Apps
Banking trojans are often hidden in malicious mobile apps. These apps can look like something as innocent as a task manager. But, once installed, banking trojans seek out any details they can find. They are looking for banking and wallet apps.
Logging Into Online Banking While on Public Wi-Fi
One surefire way to give away your online banking password is to log in while on public Wi-Fi. Hackers hang out on public hot spots and spy on the activity of others. You should never type in a password or other sensitive details when connected to public Wi-Fi.
–Updated September 2025–
New Threats in 2025: What You Need to Watch For
Cybercriminals are constantly evolving their tactics. Here are emerging threats that didn’t exist just a few years ago:
AI-Generated Phishing Scams
Artificial intelligence has made phishing emails nearly indistinguishable from legitimate bank and other communications. These messages contain perfect grammar, personalized details scraped from social media, and convincing urgency tactics.
According to research published in Harvard Business Review, AI-automated phishing achieved a 60% success rate in recent studies
Deepfake Voice Scams
Criminals are now using AI to clone voices of bank officials or even family members to trick victims into revealing account information or authorizing transfers. The FBI’s Internet Crime Complaint Center has issued multiple warnings about these sophisticated social engineering attacks, including advisories in December 2024 and May 2025 specifically addressing AI-generated voice cloning and financial fraud.
SIM Swapping Attacks
Hackers convince mobile carriers to transfer your phone number to their device, allowing them to intercept two-factor authentication codes sent via SMS. This bypass makes even 2FA-protected (specifically those protected with text 2FA) accounts vulnerable.
Malicious QR Codes
Fake QR codes placed over legitimate ones (at parking meters, restaurants, or in phishing emails) can redirect you to fake banking sites that harvest your credentials.
Cryptocurrency Scams Targeting Traditional Banking
Even if you don’t use cryptocurrency, scammers may impersonate bank officials warning you about “suspicious crypto transactions” on your account, leading you to fake verification sites.
Want to understand how these threats affect businesses? Read our guide on 4 Proven Ways to Mitigate the Costs of a Data Breach.
Tips for Improving Online Banking Security
1. Turn On Two-Factor Authentication
Enable two-factor authentication in your online banking account. This is also known as multi-factor authentication or two-step verification. According to Microsoft, it can block 99.9% of fraudulent account login attempts.
2025 Update: Consider upgrading from SMS-based 2FA to app-based authentication (like Microsoft Authenticator, Google Authenticator, or your bank’s proprietary app). App-based 2FA is more secure against SIM-swapping attacks.
2. Set Up Banking Alerts
Time is of the essence when an intruder breaches your account. The faster you can notify your bank of the breach, the better. You could reduce the impact on you by having your account locked down immediately.
Set up banking alerts through your online banking. These can include things like low-balance alerts and login alerts.
–Updated September 2025–
Recommended alerts to enable:
- Login notifications from new devices
- Transactions over a certain dollar amount
- Changes to account settings or contact information
- Failed login attempts
- ACH or wire transfer notifications
- Debit card usage alerts
3. Install an Antivirus & DNS Filtering On Your PC & Mobile Device
It’s important to have reliable antivirus software on your PC and mobile device. Many people don’t think about protecting their phones in this way. Yet, they shop online and bank via mobile devices.
It’s also good to use a DNS filter. This is a filter that protects you from going to dangerous phishing sites by blocking them.
4. Take Phishing Training Classes
Do you know how to identify phishing? Are you up on all the newest scams? You can make yourself less vulnerable by taking some phishing awareness classes. There are many of these for free online. You can also contact us for more personalized training options.
Knowing how to spot phishing via text, email, and phone can help you avoid becoming a scam victim.
Since attackers are now using AI to make phishing attempts harder to spot, you may also want to check out our blog on how AI is making email attacks smarter — and how to defend against them.
5. Get Help Protecting Your Family from Scams
There are some key digital solutions we can put in place to keep your family safer from online threats. Give us a call today to schedule a chat about online security.
–Updated September 2025–
Advanced Protection Strategies for 2025
Beyond the basics, here are additional layers of security to consider:
6. Use a Password Manager
Trying to remember complex, unique passwords for every account is nearly impossible. A reputable password manager like 1Password, Bitwarden, or Dashlane can generate and securely store strong passwords for all your accounts.
Benefits include:
- Automatically generated complex passwords
- Detects and alerts you to duplicate passwords
- Warns you about compromised passwords
- Fills credentials only on legitimate websites (protecting against phishing)
7. Enable Biometric Authentication
Most banking apps now support fingerprint or facial recognition. These methods are significantly more secure than passwords alone because they can’t be easily stolen or guessed.
8. Regularly Review Account Activity
Don’t wait for alerts. Make it a habit to review your banking transactions at least weekly. The sooner you catch fraudulent activity, the better your chances of recovery.
What to look for:
- Small “test” transactions (criminals often start with small amounts)
- Unfamiliar merchant names
- Transactions in unexpected locations
- Duplicate charges
- Round-number withdrawals
9. Use Dedicated Devices for Banking
If possible, consider using a dedicated device (tablet or smartphone) exclusively for banking and financial transactions. This device should:
- Not be used for general web browsing or social media
- Have minimal apps installed
- Be kept updated with the latest security patches
- Never connect to public Wi-Fi
10. Implement Network Security at Home
Your home network is the gateway to your online banking. Secure it properly by:
- Changing your router’s default admin password
- Enable WPA3 encryption (or WPA2 if WPA3 isn’t available)
- Update router firmware regularly
- Consider a separate guest network for visitors
- Use a VPN when accessing banking on any network outside your home
For businesses managing financial operations, our Managed IT Services include comprehensive network security monitoring and management.
Be Cautious with Banking Apps
Only download banking apps from official sources (Apple App Store or Google Play Store). Before downloading:
- Verify the app developer is your actual financial institution
- Read recent reviews for warnings about fake apps
- Check the number of downloads (legitimate bank apps typically have millions)
- Review requested permissions (be suspicious if a banking app requests access to your contacts, camera, or microphone without clear reason)
What to Do If Your Account Is Compromised
Despite your best efforts, breaches can still occur. Here’s your action plan:
Immediate Steps (First Hour)
- Contact your bank immediately – Use the phone number on your bank card or official website, never from a suspicious email
- Change your password – From a secure device
- Enable or update 2FA – If you haven’t already
- Check all connected accounts – If you reused passwords, change those too
- Document everything – Take screenshots of suspicious transactions
Short-Term Actions (First 24-48 Hours)
- File a police report – Get a copy for your records
- Place fraud alerts – Contact the three major credit bureaus: Equifax, Experian, and TransUnion
- Review credit reports – Look for unauthorized accounts opened in your name
- Report to the FTC – File a complaint at IdentityTheft.gov
- Notify other financial institutions – If you have multiple accounts
Long-Term Protection
- Consider a credit freeze – Prevents new accounts from being opened in your name
- Monitor credit reports regularly – You’re entitled to free reports from AnnualCreditReport.com
- Review and improve security practices – Use this as a learning opportunity
- Stay vigilant – Criminals may attempt follow-up scams
For businesses, a security breach can be even more devastating. Learn how to protect your organization in our article about The AI Revolution in Cybersecurity.
Special Considerations for Business Banking
If you manage business finances, the stakes are even higher. Business accounts typically hold larger balances and have more complex transaction patterns, making them attractive targets.
Business-Specific Security Measures
Separate Business and Personal Banking: Never mix personal and business finances. This creates confusion and makes it harder to spot fraudulent transactions.
Implement Dual Authorization: Require two people to approve large transactions or changes to account settings. This is sometimes called “maker-checker” control.
Use Dedicated Business Banking Devices: Business banking should only be conducted on secured, company-managed devices with enterprise-grade protection.
Regular Security Audits: Conduct quarterly reviews of who has access to what accounts and remove access for former employees immediately.
Employee Training: Your team is your first line of defense. Regular cybersecurity training can prevent costly mistakes. Learn more about our employee training programs.
Cyber Insurance: Consider cyber liability insurance that covers financial fraud and business interruption. This is especially important for businesses in Idaho Falls, Pocatello, and surrounding areas where local businesses may be targeted.
Idaho-Specific Considerations
Idaho businesses face unique challenges:
Rural Banking Access: Many Idaho communities have limited physical bank branch access, making online banking essential but also creating more potential attack vectors.
Agricultural Industry Targets: Idaho’s agricultural businesses are increasingly targeted by cybercriminals who know seasonal cash flows mean larger account balances at certain times of year.
Small Business Vulnerability: According According to the Small Business Administration, 41% of small businesses were victims of a cyberattack in 2023, and 43% of all cyberattacks are aimed at small businesses. Yet only 14% are adequately prepared to defend themselves. Idaho’s small business community needs robust protection.
The Role of Your Financial Institution
While you’re responsible for your own security practices, your bank also has obligations:
What Your Bank Should Provide
Zero Liability Protection: Most banks offer protection against unauthorized transactions if reported promptly. Understand your bank’s specific policy.
Fraud Monitoring: Banks should actively monitor for suspicious activity and contact you if they detect anything unusual.
Secure Website: Look for “https://” and a padlock icon. Legitimate banking sites use 256-bit encryption.
Regular Security Updates: Your bank should communicate about new security features and emerging threats.
Education Resources: Many banks offer free security education. Take advantage of these resources.
Red Flags About Your Bank
If your bank exhibits any of these issues, consider switching to a more security-conscious institution:
- Doesn’t offer 2FA
- Has experienced recent data breaches without adequate response
- Doesn’t provide real-time transaction alerts
- Has poor customer service regarding security concerns
- Lacks modern security features like biometric authentication
For businesses evaluating banking technology solutions, our team can help assess security features and implement additional protective measures. Contact MOATiT for a security consultation.
Emerging Technologies: The Future of Banking Security
The banking industry is rapidly adopting new technologies to combat fraud:
Behavioral Biometrics
Banks are implementing systems that analyze how you interact with your device – typing speed, mouse movements, touchscreen pressure. These unique patterns create an additional layer of authentication that’s nearly impossible to replicate.
AI-Powered Fraud Detection
Artificial intelligence can detect anomalies in real-time, flagging suspicious transactions before they’re completed. These systems learn your spending patterns and can identify fraud with remarkable accuracy.
Blockchain Verification
Some financial institutions are exploring blockchain technology to create immutable transaction records that make fraud significantly harder to execute.
Passwordless Authentication
The future may eliminate passwords entirely, relying instead on combinations of biometrics, device recognition, and behavioral analysis.
To understand how AI is transforming security across industries, read our comprehensive guide on AI’s Impact on Business Operations and Cybersecurity
This Article has been Republished with Permission from The Technology Press.
