A safety checklist for mobile banking

If you have a smartphone, banking recently became easier.

Major banks are ramping up their remote deposit programs to make it easier for customers to accomplish financial transactions on their smartphones.

But is it safe to move funds among checking and savings accounts using an email address or phone number instead of account numbers and routing numbers? Are you at risk if you make an electronic payment to someone else's checking account using a smartphone?

With all of the publicity about cyber theft, phishing and scams, how vulnerable have we become with these new features?

Because this technology is so new, its susceptibility is still unknown.

However, like with online banking, all information transmitted between servers and smartphones is encrypted.

And, unlike PCs, mobile phones are safe from malware, which has been identified as one of the biggest dangers of online banking.

Still, there are safety measures that can be taken to ensure your information is kept private, your money is secure and your accounts are not compromised.

This checklist can be used to help you assess your risk and employ a plan to safely enjoy the convenience of banking on the go.

• Activate security features. First and foremost, it is important to activate the mobile phone's security features, since, unlike a PC, this device can be easily stolen or lost. As much of a pain as it can be, it's important to use a PIN or password to keep it locked when it's not in use. This is the first line of defense, not only for your banking information, but also for other phone content that is private, personal and proprietary.
• Have remote control. Install an app that allows you to clear your phone's contents remotely if it is lost or stolen. Some banks provide this feature with apps that can be downloaded. BlackBerrys and iPhones offer a remote-wipe service for an extra fee.
• Only use SMS for low-risk banking activities. Short messaging service, or SMS, allows you to receive text alerts from banks and other businesses. By requesting messages about account balances, cleared checks and moved funds, you can more easily keep tabs on your money. Yet, because SMS is the least secure banking method and doesn't typically include encryption, it is best to use it for low-risk banking activities, such as locating ATMs or researching bank hours. And it is possible for scammers to impersonate bank representatives via SMS messages, so make it a point to never reveal any personal information while using this service. This includes sending out account numbers, passwords or PINs.
• Beware of scams. If your smartphone has a built-in mobile browser, it will most likely be susceptible to PC-type security breaches. For this reason, beware of phishing scams and deceptive websites that mimic your bank's. Again, never disclose confidential information or account details that could put your money at risk.
• Utilize client application programs. These are designed to be downloaded on smartphones and link you directly to your bank. These applications are very secure, as they are tied in with bank security systems. Although they are resistant to phishing scams, there is a chance sensitive information will be stored on your phone. Be sure to log out after use and keep the phone locked using a password.
• Avoid automatic log-in. Make sure your phone doesn't automatically log into your bank account. This will create a very vulnerable situation if the phone is lost or stolen.
• Don't store your info. It may sound redundant, but is worth repeating. Don't store information such as PIN numbers, passwords, account numbers, etc. on your smartphone.
• Let the bank know if your phone is missing. If you use your smartphone for banking and it is ever lost or stolen, notify the bank immediately. This way, you can circumvent account theft before it occurs.

In a nutshell, the same level of caution should be taken with smartphone banking as with online banking.

By taking some common-sense precautions, you can enjoy the convenience of banking by mobile phone, while keeping your accounts secure. The peace of mind is worth it.

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