Safe Internet Banking

Tips for Safe Banking Over the Internet

As use of the Internet continues to expand, more banks and thrifts are using the Web to offer products and services or otherwise enhance communications with consumers. The Internet offers the potential for safe, convenient new ways to shop for financial services and conduct banking business, any day, any time. However, safe banking online involves making good choices – decisions that will help you avoid costly surprises or even scams. This brochure offers information and tips to help you if you are thinking about or already using online banking systems. We will tell you how to: Confirm that an online bank is legitimate and that your deposits are insured Keep your personal information private and secure Understand your rights as a consumer Learn where to go for more assistance from banking regulators

Confirm that an Online Bank Is Legitimate and that Your Deposits Are Insured

Whether you are selecting a traditional bank or an online bank that has no physical
offices, it’s wise to make sure that it is legitimate and that your deposits are federally
insured. Here are tips specifically designed for consumers considering banking over
the Internet.

Read key information about the bank posted on its Web site.

Most bank Web sites have an "About Us" section or something similar that describes

the institution. You may find a brief history of the bank, the official name and address

of the bank’s headquarters, and information about its insurance coverage from the

FDIC.

Protect yourself from fraudulent Web sites.

For example, watch out for copycat Web sites that deliberately use a name or
Web address very similar to, but not the same as, that of a real financial institution.
The intent is to lure you into clicking onto their Web site and giving your personal
information, such as your account number and password. Always check to see that
you have typed the correct Web site address for your bank before conducting a
transaction.

Verify the bank’s insurance status.

To verify a bank’s insurance status, look for the familiar FDIC logo or the words

"Member FDIC" or "FDIC Insured" on the Web site.

Also, you should check the FDIC’s online database of FDIC-insured institutions.

(formerly “Is My Bank Insured?”). Search by name, city, state or zip code of the bank,

and click the "Find" button. A positive match will display the official name of the

bank, the date it became insured, its insurance certificate number, the main

office location for the bank (and branches), its primary government regulator,

and other links to detailed information about the bank. If your bank does not

appear on this list, contact the FDIC.

Some bank Web sites provide links directly to the FDIC’s Web site to assist

you in identifying or verifying the FDIC insurance protection of their deposits.

Also remember that not all banks operating on the Internet are insured by the

FDIC. Many banks that are not FDIC-insured are chartered overseas. If you

choose to use a bank chartered overseas, it is important for you to know that

the FDIC may not insure your deposits. Check with your bank or the FDIC

if you are not certain.

For insurance purposes, be aware that a bank may use different

names for its online and traditional services; this does not mean you

are dealing with separate banks.

This means, for example, that to determine your maximum FDIC insurance

coverage, your deposits at the parent bank will be added together with those at

the separately named bank Web site and will be insured for up to the maximum

amount covered for one bank. Talk to your banker if you have questions.

Know where to get more information about FDIC insurance.

Don't worry about your deposit insurance coverage if you or your family have less

than $100,000 in all your accounts combined at the same FDIC-insured bank.

But if your accounts total $100,000 or more, find out if they're within the insurance limit.

Contact your bank for more information.

For additional assistance from the FDIC about the legitimacy of an institution or the
insurance of your deposits, call the FDIC's Division of Compliance and Consumer Affairs
toll-free at 800-934-3342 or send an e-mail via the FDIC’s online.