Why Your Family’s Financial Safety Relies On Smart Online Banking Habits
The traditional family bank is no more. You can pay bills, transfer money and check account balances from your cellphone on the couch! But this convenience comes with serious dangers.
Cybercriminals were able to steal billions of dollars this year from families that failed to take precautions, and protect their online banking credentials. They get access to your money using tricks like phishing emails, fake websites, and malware. All it takes is one mis-click and your bank account gets drained.
The good news? There are easy steps you can take to protect your family that don’t require a degree in computer science. These 12 tips for online banking safety will help you to bank online with confidence.
Forge Unbreakable Passwords With a Simple Copy-Paste Trick
Your password is the key to help keep thieves out. Many families are using weak passwords such as “password123” or their date of birth. This is very convenient for a hacker.
A password must be at least 12 characters. Intertwine capital letters, small letters, numerals and special characters. Do not use a same password for more than one account.
Here’s a trick: Pick a sentence you won’t forget. Form the first letter of each word and add numbers and symbols. For instance, “My family went to Disney World in 2020!” becomes “MfwtDWi2020!”
Password managers can help. These are apps that will generate and store complex passwords for you. All you have to do is remember one master password. Some popular ones include LastPass, 1Password and Dashlane.
Password Safety Table:
| What to Avoid | What to Use Instead |
|---|---|
| Pet names | Random letters and digits |
| Birthdays | Passphrases (4+ random words) |
| “Password123” | Unique password for every site |
| Password stored in text files | Passwords saved in your encrypted password manager |
Rotate your banking passwords every three to six months. Change them right away if your bank announces a security breach.
Why Two-Factor Authentication Is Adding a Second Lock to Your Login
Two-factor authentication (2FA) is similar to having two locks on your front door instead of one. So even if someone snags your password, they can’t gain entry without the second key.
In the case of 2FA, you’ll input your password as usual. Then you will be asked to verify your identity with a second step. This could be a code that gets sent to your phone, a fingerprint scan or a special app.
Most banks now offer 2FA. Turn it on today. Head to your account settings and click on “security” or “two-factor authentication.” The setup is about five minutes.
Some 2FA options are better than others. Messages that use codes sent by text are fine, but authenticator apps like Google Authenticator or Microsoft Authenticator are better. Biometric alternatives, including fingerprints or facial recognition are also easy to use and effective.
Explain to your kids the importance of 2FA. If they realize it prevents bad guys from swiping money, they will use it on their own accounts when they grow up.
Public Wi-Fi Networks Are a Big No-No
Coffee shop Wi-Fi seems harmless. You’re just briefly glancing at your balance while waiting for your latte, yeah? Wrong. It’s like a deranged cybercriminal hunting ground for cybercriminals.
Data is intercepted by hackers over public networks. They can watch what sites we visit, and steal our logins. They create fake Wi-Fi hotspots that appear real but record everything you do.
Save checking your bank account for when you’re home. If you have to bank on the go, do so using your smartphone’s cellular data rather than Wi-Fi. Connections in cells are far stronger.
A Virtual Private Network (VPN) can shield you on public Wi-Fi. VPNs encrypt your internet connection so hackers can’t read your data. Example of good VPN services: NordVPN, ExpressVPN and Surfshark.
Establish a family rule that you never conduct online banking over public Wi-Fi. No exceptions. It may frustrate your teenager, but they’ll thank you later when their college savings fund remains untouched.
Spotting Phishing Scams Before They Hook You
Phishing emails appear to be from your bank. They tell you there is an issue with your account. They contain a link to “resolve” the issue. But clicking that link puts your money in the hands of criminals.
Banks do not solicit your password or account number by e-mail. They will not send urgent messages containing instructions to act at once. These are red flags.
Teach your family how to recognize phishing:
- Review the sender’s email address – Check who is sending you this request. “support@wellsfargo-security.com” is fake. The real address is “@wellsfargo.com”
- Hover over links before clicking – Your request makes it to the destination of your choice (see bottom of screen)
- Look out for spelling and grammatical errors – Scammers often make errors
- Be suspicious of urgent language – “Your account will be terminated in 24 hours!” is a common trick
- Always type the web address in for your bank – Type the URL directly into the address field of your browser
Build a family plan for suspicious emails. Forward them to your bank’s fraud department and delete. The majority of banks have e-mail addresses that are designated just for reporting possible phishing attempts. For more comprehensive guidance on protecting your family online, visit Internet Safety Guide Online for additional resources and tips.
Keep Your Devices Updated and Secure
New software updates are not just about features. They close security holes taken advantage of by hackers. An ancient phone or computer is fair game.
Turn on automatic updates for all family devices. This goes for your phones, tablets and computers or anything else that you may rely on to access your bank account. The updates are supposed to happen overnight while you sleep.
Install antivirus software on computers. Free solutions like Windows Defender do a good-enough job for simple protection. The paid options, like Norton or McAfee add extra features.
Device Protection Checklist:
- ✓ Turn on automatic OS updates
- ✓ Install and keep antivirus software up to date
- ✓ Always update all banking apps to latest version
- ✓ Keep your web browser up to date
- ✓ Replace machines that no longer get security patches
Phones and tablets deserve protection as well. Only download apps from official stores, such as Apple’s App Store or Google Play Store. Read reviews before installing anything.
Configure locks for devices through passcode, pattern or biometrics. If someone grabs and runs with your phone, they should not be able to open up your banking app.
Watch Your Accounts Like a Hawk
Log in to your bank accounts at least once a week. Check for any charges you don’t remember, even if they are small.
Create account notifications at your bank. You’ll get notifications for:
- Large withdrawals or deposits
- Purchases over a certain amount
- Login attempts from new devices
- Changes to account settings
- Low balance warnings
You can generally customize these alerts with most banks. You may get them via text, email or in the banking app. Turn on as many as possible.
Review your monthly statements carefully. Don’t just look at the balance. Look at every transaction. The minute you find something that looks out of place, report it.
If older kids have debit cards, you might want them to keep an eye on their accounts. This fosters healthy financial behavior and teaches them to catch issues early.
Secure Your Home Wi-Fi Network
The home Wi-Fi is the door to your online life. An unsecured network permits neighbors or strangers to view your online banking sessions.
Change your router’s default password. The password you find on the bottom of your router is public knowledge. Just come up with a good, unique password instead.
If your router supports it, use WPA3 encryption. This is as strong as Wi-Fi security gets. WPA2 is fine if you have an older router. Never add WEP encryption — it is extremely easily broken.
Conceal your SSID from the broadcasting list. This causes your network to hide itself from prying eyes. Relatives can still join by typing in the network name.
Set up a guest network for others. This keeps guests off the devices on your main network. They have the ability to surf the internet without ever connecting your smart TV or computer.
Wi-Fi Security Steps:
- Login to your router (usually at 192.168.1.1)
- Change admin username and password
- Enable WPA2 or WPA3 encryption
- Create a strong Wi-Fi password
- Enable guest network
- Update router firmware regularly
Educate Children About Age-Appropriate Online Banking Safety
Start teaching kids about digital safety at an early age. What you teach them now will protect them for life.
For young kids (ages 5-10):
- Tell them that online connects to real people, sometimes not nice ones
- Never share passwords with friends
- Let a parent know before clicking on email links
- Don’t share family information online
For preteens (ages 11-13):
- Explain how scams work
- Give them some samples of phishing emails
- Teach them how to tell if site is safe before entering data
- Examine the effects of embezzled money
For teenagers (ages 14-18):
- Go through all these safety tips as a family
- Allow them to have their own accounts with supervision
- Talk about actual news stories regarding banking fraud
- You can suggest they use a password manager and turn on 2FA
Ensure online safety is an ongoing conversation, not a one-time lecture. Technology changes quickly. What is safe now may not be safe next year.
Bank App Instead of Browser Banking
Banking apps typically are more secure than banking on the web. It is more difficult for criminals to fake apps. And they offer added security, such as biometric login.
Only download your bank’s app from official app stores. Look up the name of your bank and verify that the company listed is, in fact, your bank. Scam artists create fraudulent applications with somewhat similar names.
Do not install banking apps sent via links in emails or text messages. Go to the app store and search for the app yourself.
Enable app-specific security features. Most banking apps have additional security beyond that offered by your phone. When possible, replace with fingerprint or face recognition.
Log out of your bank app when you’re done. Don’t be logged in all the time. This is an extra step every time, but security comes first.
Get rid of old banking apps from phones or tablets no longer in service. That old iPhone in a drawer could be a security risk.
TMI on Social Media Is a Problem
Criminals simply assemble the information from social media to answer security questions. Your mother’s maiden name, the name of your first pet and where you went to high school may be out there, somewhere on Facebook.
Check your entire family’s privacy settings on all social media. Adjust visibility to friends only, not everyone. That includes Facebook, Instagram, Twitter and TikTok.
Do not post anything that could be used to answer your security questions:
- Mother’s maiden name
- City where you were born
- Name of first pet
- High school you attended
- Street you grew up on
Do not announce vacations before you go. Posts like “Leaving for Hawaii tomorrow!” inform the criminals that your house and accounts will be unmonitored for a week.
Teach kids about the dangers of oversharing. They won’t understand why posting “My mom’s maiden name is Johnson” matters until you explain how security questions work.
Consider fake answers to the security questions. Write them down in your password manager. If your first pet’s name is “Fluffy” but your security answer is “correcthorsebatterystaple”, then hackers can’t use social media to guess it.
Set up Spending Limits and Alerts for Family Members
Set spending limits through your bank if your kids have debit cards. Most banks allow parents to control how much their children can spend daily or weekly.
Create different alert thresholds for each family member. Maybe you want alerts for purchases over $100 on your account, but $20 on your teenager’s.
Some banks offer location-based alerts. You get a notification when someone uses your card in another city/country. This will catch the fraud quickly.
Review spending patterns monthly. Check for unusual activity. This could be multiple small purchases or charges from merchants you do not know.
Family Banking Safety Chart:
| Family Member | Daily Limit | Alert Threshold | Additional Controls |
|---|---|---|---|
| Parent 1 | Unlimited | $500+ | International alerts |
| Parent 2 | Unlimited | $500+ | International alerts |
| Teen (16-18) | $100 | $50+ | Online purchases blocked |
| Preteen (13-15) | $50 | $25+ | Only approved merchants |
Adjust these limits as your children grow and show responsible money management. Think of banking controls as learning, not just protection.
Know What to Do If Something Goes Wrong
Despite your best efforts, fraud may still occur. Quick action will make a difference.
If you see something suspicious:
- Contact your bank right away
- Ask for the freezing or closure of this account
- Manage all passwords regarding your bank
- Review your credit reports for any new accounts you didn’t open
- Report the scam to the Federal Trade Commission’s IdentityTheft.gov
Most banks offer zero liability protection for fraud. You needn’t lose money if you report issues early. The important word is “quickly” — many banks allow reporting only 60 days after a statement.
Store the number for your bank’s fraud department in your phone contacts. Keep it for anyone who has accounts or cards for the whole family.
Document everything. Take screenshots of suspicious transactions. Save copies of fraudulent emails. Document all communications with your bank.
Consider credit monitoring services. These will notify you if someone opens new accounts in your name. A number of banks provide the service to customers for free.
Develop a Family Online Safety Pact
Put these rules in writing. It’s harder to back out of something when everyone’s signed an agreement.
Your family agreement should include:
- No banking on public Wi-Fi
- Always use 2FA when available
- Review accounts for unusual activity at least once a week
- Never share passwords with anyone
- Report suspicious emails immediately
- Download apps only from official stores
- Keep all devices updated
Display a copy of the agreement where it can be seen by everyone. The refrigerator can be used as the family bulletin board, just as a shared digital document would.
Check the agreement every year, and make amendments where necessary. Technology changes. New scams emerge. What children need from your family changes as they grow.
Make consequences clear. If a teenager breaks the agreement, he or she could temporarily lose access to his or her debit card. If a kid gives away a password, that could mean a day without internet.
But also celebrate successes. When someone points to a phishing email, thank them. Give a special treat when the family has an entire month without security problems. Positive reinforcement is more effective than fear.
Final Thoughts On How to Protect Your Family’s Finances
Online banking simplifies life, but it needs to be managed constantly. Cybercriminals constantly churn out new techniques for siphoning money from people. Your family’s well-being hinges on becoming informed and doing the right thing.
The 12 tips in this article combine to offer a comprehensive defense strategy. Strong passwords, two-factor authentication, secure networks and educated family members erect so many barriers against fraud.
Start implementing these strategies today. You don’t have to do it all at once. Choose three tips to zero in on this week. Add more next week. Your family’s online banking will be a whole lot harder to hack within 30 days.
And keep in mind, internet safety isn’t one-and-done. Make it part of your family routine, like locking the doors at night or wearing seatbelts. The habits you establish today safeguard your family’s financial future.
Have open conversations with your children about the risks of being online. Children who understand why they have rules are more likely to follow them than children who hear little beyond, “Because I said so.”
Your money is worth protecting. The financial security of you and your family relies on the decisions you make daily while online. And use your head, keep your guard up and bank safely.
Frequently Asked Questions
How frequently should I change my online banking password?
You need to change your banking password once every 3-6 months. Change it as soon as possible if your bank notifies you of a data breach, or if you suspect that someone had access to your password. Have a dedicated password for your bank — as in, never use the same passwords as any other accounts.
Is mobile banking security more secure than a computer?
Mobile banking apps are often safer than browsers because they’re harder to fake, and come with built-in security features. But both can be safe if you take proper safety precautions, such as using strong passwords, turning on 2FA and keeping software up to date.
I clicked on a phishing link, what should I do?
Don’t panic. Change your banking passwords right now on a different device. Call your bank’s fraud department and tell them what happened. Keep a close eye on your accounts for any unusual activity. Run antivirus on the device you used. You might want to put a fraud alert on your credit report.
If I’m using public Wi-Fi, can my bank tell?
Banks can detect odd login patterns at times but may not see the fact that you’re using public Wi-Fi. Either way, you shouldn’t be banking on public Wi-Fi because there’s a slim chance bad guys using the same network can intercept your data, even if that goes unnoticed by your bank.
When should kids get their own bank accounts?
Many banks provide accounts for children as young as 13, with a parent’s supervision. The right age is whatever makes sense based on your child’s emotional maturity and understanding of money. Begin teaching them about online banking safety several years before you give them access to an account. Some families start with savings accounts at ages 10-12, then add debit cards around 14-16.
Debit card fraud vs credit card fraud protection: What are the differences?
Credit cards usually provide a higher level of fraud protection. Federal law caps your liability at $50 for unauthorized credit card charges, and most credit card companies set their liability limits at zero. Debit card protection is up to the bank, and stolen money immediately cuts right out of your checking account, potentially causing you instant financial pain until the issue has been resolved.
