Is Online Banking as Safe as In-Person Banking?

In the age of phishing emails, robocalls, and data breaches, many people are rightfully concerned about the security of their money. This has led lots of folks to wonder if digital banking is as safe as in-person banking.

Our community credit union shares insight into how banks and credit unions safeguard your funds and what you can do to avoid fraud.

What to know about modern banking

In today's world, there are banks that operate only online and those that have brick-and-mortar bank branches. A critical thing to note here is that even banks with physical locations offer digital account access. In other words, even if you only access your account in person, your bank is most likely, in some way, still managing it digitally.

Some banks continue to track deposits with paper slips, though many now offer digital signing. Of course, with paper checks, ATM withdrawals, and cash deposits, a few physical aspects of banking remain. However, much of the system relies on digital money management.

So, how do banks and credit unions keep your money safe in the continuously evolving digital space? Federally backed insurance is part of the equation. The rest has to do with private insurance and multi-layer security encryption. Here's what you should know.

What is FDIC insurance?

Most traditional banks are insured by the Federal Deposit Insurance Corporation (FDIC), which covers up to $250,000 for individual accounts. This means that if the bank shuts down due to an economic collapse, for example, the FDIC would give you your money.

What is NCUA insurance?

CCCU is insured by the National Credit Union Administration which covers up to $250,000.

Federally chartered credit unions, like CCCU, and most state-chartered credit unions are insured by the National Credit Union Administration (NCUA), which provides coverage through the National Credit Union InsuranceFund (NCUSIF). Like FDIC insurance, this allows credit unions to cover up to $250,000 for member accounts.

What about fraud and theft?

The FDIC and NCUSIF don't cover losses from fraud or theft. However, most banks and credit unions have additional private insurance to cover disputed charges, fraudulent transactions, and billing errors.

Online account protection

Modern credit unions take various steps to protect member accounts when they're accessed virtually. For instance, CCCU uses 128-bit SSL (secure socket layer) encryption and multi-layer authentication for logins on our online portal and mobile banking app. Plus, our systems are continuously updated with the latest cybersecurity, including anti-virus protection and firewalls, and monitored for potential gaps.

Learn more about our community credit union

At CCCU, we help all of our clients maintain their financial health safely. Plus, we offer many perks to our members. Our members can get competitively low-interest rates on mortgages, car loans, bike loans, personal loans, business loans, and Visa credit cards with no balance-transfer fees.

CCCU proudly serves members throughout the metropolitan area, including Multnomah, Yamhill, Clackamas, Columbia, Washington, Clark, Skamania, and Hood River counties. We have three physical branches in Portland and one in Hood River, convenient mobile banking, plus access to 5,600+ CO-OP Shared Branches and over 30,000 surcharge-free CO-OP ATMs nationwide!

Join our credit union today, or contact us to learn more.

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