Manage your own finances safely

Money and finances are a difficult topic. Many people have surprisingly little knowledge of investing, saving, etc. and often ignore the topic.

At the same time, it is very important to be familiar with your own finances and to know where your money is invested. Unfortunately, there are numerous pitfalls, especially in our digitalized world of the 21st century, that need to be taken into account. With a few tips and tricks, everyone can keep their own finances under control and make it even more difficult for fraudsters.

Fraudsters are taking advantage of the corona pandemic

Even the ongoing Corona crisis has not stopped fraudulent activities involving money. Both older and younger people repeatedly fall victim to fraudsters who want to get their data or their money directly. In this context, it is important to remain vigilant. In general, in times of a global pandemic, it is not advisable to simply let strangers into your apartment or house. If you have an intercom system, you should always clarify who is at the door.

But what happens if the data is to be intercepted over the Internet? Consumers need to protect themselves particularly here. Encrypted networks, encrypted data and strong passwords are the first step to protecting your own data online. This is especially true when sensitive data such as account details or similar are affected. Especially in the area of ​​investments and banking, it is important to protect your data meticulously. This is the only way to minimize the risk of fraud.

Regulate everything online? Why, surely

Many Austrians rely on online banking. That's only logical. Online banks generally do not charge any fees for transfers, account management is much cheaper, if not free, and the customer does not have to go anywhere to make bank transactions. Of course, it is essential to find a safe and good bank. Online banks are a dime a dozen, so it's hard to keep track of them. An online banking comparison helps you find the right provider for your needs.

An online bank should focus on security, encrypt all data and work with multiple security mechanisms. The keyword here is two-factor authentication . TANs or SMS are often sent with codes with which the customer practically has to “identify” themselves in order to access their online banking. Other points that speak for the security of an online bank are:

• serious demeanor and clear communication
• Personal contact via email or telephone
• As a general rule, no personal data (account number, IBAN, passwords or similar) is requested in messages

However, customers should be careful with websites that are written in poor German, that advertise with unfulfillable promises or that repeatedly send emails requesting data. If in doubt, it helps to contact the bank or savings bank by telephone.

Another point is the TAN procedure. As a rule, these number codes are required to verify yourself in online banking and to initiate money movements. TANs are available either via SMS or via a separate app; some banks also offer TAN generators. Fraudsters repeatedly try to access to the TANs and thus access to online banking via phishing emails or, more recently, via phishing calls . Basically: Reputable banks never ask for a TAN manually! This is only requested during banking transactions or when logging in.

Always keep an eye on your investments

Anyone who manages their finances via online banking should check their account regularly and make sure that everything is going smoothly. Unauthorized debits can be reversed within eight weeks. If the customer can prove that he did not authorize the direct debit, he even has 13 months. The invoice always begins on the day of the account booking. This makes it all the more important to always monitor account movements. Many banks – whether online or stationary – offer a notification service. Here, customers can be notified via email or push notification that something has been posted to or debited from the account.

By the way, this doesn't just apply to the actual checking account. Daily money accounts, savings books, stocks, funds and so on should also be checked regularly in order to quickly discover possible errors and fraudulent activities and to be able to act accordingly.

Trust is good, control is better

It seems to be a particularly convenient and easy way to hand over the investment strategy to supposedly professional hands. Of course, the same applies here: caution is the key. Because if you give up all financial matters, you don't know what happens to your account and therefore your money. This makes it all the more important to consult your advisors again and again. Every bank employee has an obligation to provide information to his customers. Customers should definitely use these! This is the only way you can protect yourself from fraud.

Of course, first of all, a customer should trust their bank advisor. Especially when it comes to such an important and sensitive topic as money. However, it is important to remain in control. The bank advisor should always consult with the customer and inform him about all important movements. If he doesn't do this or even initiates unauthorized payments or investments, you should talk to him. If in doubt, the customer can arrange for the unauthorized investments to be reversed. Of course, time limits also apply here. Not least because of this, it is essential that the customer consults the advisor regularly.

Conclusion

Basically, online banking is a simple and convenient way to manage your finances. However, it should be noted that there are many ways for fraudsters to steal sensitive data. Here consumers must actively protect themselves. Secure networks, encrypted data and a lot of attention to the little things can help. Anyone who works with a particular advisor must regularly check that everything is going well. Mistakes can happen here and of course there are black sheep among financial advisors. It is safest if consumers deal with the financial issue themselves and understand how they want and need to manage their finances.

Article image: Shutterstock / By sivilla