The internet has grown, allowing for convenience in our daily lives. However, with the advancement of technology, what also followed was its abuse in the form of rising cybercrime. With acts like harassment, stalking, phishing, and identity theft on the rise, malicious individuals started to aim towards financial gains. Thus, we saw a wave of banking frauds and hostile account takeovers. In recent years, the rate of such acquisitions has increased by a staggering amount of 79% in the United States alone. That begs the question, “can VPN can be used for online banking safely?” Don’t fret, we’ll get to that.
Banks have tried to circumvent and prevent such fraudulent acts on their own. Unfortunately, online banking is ultimately in the domain of end-user application, allowing for human error. However, the advent of technology also gave rise to tools that can aid users in keeping their online activities safe. One such implementation is the VPN. Today, we study and conclude whether a VPN can make your online banking activities safe.
Note — Although a VPN can ensure your financial safety, we recommend using your best judgments before employing one. Not all VPNs are safe. Do not attempt to use a FREE VPN for online transactions. Unless you trust a provider, you must use common sense and stay alert before making a choice.
What is a VPN?
Before delving deeper into this topic, we must provide some basic understanding regarding what a VPN is and how it operates. You can also find a detailed article on VPNs on our website if you are so inclined. A VPN, or a Virtual Private Network, is a private network that runs over a public one, such as the internet. It uses security protocols to establish encapsulation and encryption of data. The encrypted data then travels from a client to a server, connected via a tunnel. This tunnel itself is a result of protocols and allows the VPN to circumvent firewalls by tunneling data through them.
Due to the nature of this technology, the encrypted data traveling within the tunnel is immune to interception. The tunnel prevents anyone else (hackers, malicious individuals, ISP (Internet Service Provider), government) from gleaning into the ongoing traffic. Even if this data finds itself in the wrong hands, it is illegible for others due to the latest encryption practices. Thus, a VPN provides you with layers of security to endure the safety of data.
Not only that, a VPN allows a client to access the internet via a remote proxy/server. Thus, the owner of the data, the originating IP address, can hide behind a server to ensure anonymity. Although we know a VPN is not foolproof, it is enough for your online safety.
Therefore, a VPN is one of the best tools for protecting online traffic and ensuring privacy. However, is a VPN suitable for online banking? Well, in theory, there doesn’t seem to be a problem. However, regardless of whether a VPN can aid in securing your financial activities, employing a VPN in your daily lifestyle can lessen the chances of phishing attacks. This passively helps with banking online.
Should you use a VPN for online banking?
The real answer is — it depends. We will analyze when and how to use a VPN safely for online banking to help you decide. A quick answer with an asterisk is — yes, you should. On the risk of sounding contradictory, let us explain.
First, there are a plethora of VPNs available in the market. That severely limits our ability to provide a confident short answer. Overall, a VPN is a great implementation to protect your financial activities. However, there are some details to consider and some precautions to follow. While banks are mammoth financial institutions with enough resources to ensure the safety of your online banking needs, the act itself is dependent on users. That leaves a chance for human error.
Thus, employing a VPN may not be the worst idea. From such a point of view, if we advocate for VPNs, the picture looks much brighter. This is especially true when we account for the merits and conveniences VPNs bring to the table. Mentally, it allows for peace of mind. Technically, it provides encryption and authentication methods to ensure safe online habits. Therefore, as long as you are relatively cautious and maintain a healthy internet habit, using a VPN can be a boon for using an online bank.
How can I use a VPN to protect my financial interests?
You can use a VPN safely for online financial security by following the steps below:
- Never use a free VPN for any transactions — Avoid free VPNs. They look appealing but are fraught with issues such as adware. Thus, using a Free VPN can make you vulnerable to phishing attacks. Additionally, they log and engage in the selling of data, which can lead to identity theft. Most free VPNs do not have strong encryption either, allowing hackers to steal your data.
- Do not use remote servers for online banking — You should not try to access your bank account remotely. It can lead to misunderstandings and even temporary blocking of your banking services. When you use foreign servers to connect to your bank account, it will appear as if someone from a foreign country is trying to access your account due to IP spoofing.
- Run your VPN at max protection — While banking, it is advisable to use VPNs at max power. Use additional features like kill switch and always-on VPN. Try to utilize advanced protocols and encryption profiles. Employ ad blockers and malware blockers if your VPN has them. Finally, use a private DNS address.
- Use a strong password and or a two-factor authentication method — Always use a strong password for financial activities. Do not store passwords with a website or use the auto password feature on banking sites. Instead, employ a reputable password manager. Also, try to use two-factor authentication as much as possible for enhanced security.
- Try to use a secure browser — We would like to suggest using a secure browser like TOR for additional security. However, you can also use Brave or Mozilla Firefox for desired results.
Benefits of using a VPN for online banking
Since we already embraced the idea of using a VPN for online banking, let us observe a few benefits a VPN can bring to the table.
Your information remains secure
A VPN can make your data secure and private. Although banks use HTTPS encryption to protect their websites, a VPN can run an additional layer of security by encrypting internet traffic. The extra layer makes it that much harder for anyone coveting your data from attempting to act upon that desire.
The banking app gets an additional layer of security
In the case of a mobile banking application, VPNs can make them safer. Although these apps are secure and come directly from respective app stores with genuine authenticity, they run on your public network. The growing popularity of such apps only makes them an appealing target for hackers. Thus, a mobile banking app is full of convenience and risks. Now, banks are doing their best to make these apps as secure as possible. In the meantime, you can use a VPN to ensure the traffic within the app gets encrypted to protect against potential cyber-attacks.
Allows access to banking from a public network
Many users prefer public Wi-Fi. They love the ability to browse and shop for various merchandise while enjoying a cup of coffee. They access their emails, bank accounts, use credit cards, and much more without realizing they are a potential target for the infamous MITM (man in the middle) attack. Public Wi-Fi/network is unsafe and a hotbed of risks. Other than possible malware, you run the risk of phishing attacks on a public network. Additionally, since the interface is open to everyone, you have no way of knowing who else is online.
The other on the network can be a hacker waiting for potential vulnerabilities of your system to expose themselves. They can launch attacks to access your data and steal it to impersonate you. Thus, using a VPN on such networks is the best solution to these issues. Not only does your data remains secure under encryption, but you are also hidden behind a server, making any attempts moot.
Ensures safe banking while traveling
Similar to using public Wi-Fi in a restaurant, when traveling, you tend to use hotpots at airports, bus stops, railway stations, and hotels. As such, there are comparable consequences for these actions. Anytime you connect to a Wi-Fi hotspot you can’t trust, you run a risk of data theft. The best and easy-to-execute solution to this problem would be to use a VPN whenever you are on a public network. Therefore, next time you go away on a trip, you can employ a VPN for your peace of mind.
Defends against phishing
A VPN can protect you against phishing. Hackers tend to harvest usernames and passwords. For that, they can use a fake website similar to a genuine one, with differences a lot harder to point out. Thus, when you enter any username and or password on such websites, hackers can easily use it against you. With a VPN, your data will be subject to encryption, and you can do a DNS level scan to avoid such scams.
Is using a VPN for online banking safe?
We can conclude from the available information that a VPN is relatively safe for online banking under specific circumstances. A VPN will not compromise your data and protect your financial interest over a public network. All thanks to the encryption technology! At the moment, VPNs engage in the practice of 256-bit encryption, which is impossible to crack in a human lifetime. Even government agencies use this encryption to safeguard their data.
Don’t even get us started on public Wi-Fi hazards — hackers are far smarter than we give them credit for. Thus, they have ingenious methods to breach our defenses. By using a VPN, you take away the initiate from the hackers. We can surmise that a VPN can be a stand-in for a secure banking operation but must be used cautiously. We will cover this in the later part of our article. First, we must know when is the right time to use a VPN and when we can’t use one at all.
When to use a VPN for online banking?
The following scenarios are suitable for using a VPN:
- When doing online transactions — It is preferable to use a VPN when you engage in any online transactions. It can protect your identity as well as encrypt the data. The implementation of VPN will aid in shielding of usernames and passwords and help fight off cyberattacks.
- When you are on a public network — We have already established how public Wi-Fi can endanger your financial interests. Now, we know we can’t prevent users from accessing public networks, as sometimes they can be a real lifesaver. We can, however, encourage them to take preventive measures such as the VPN while browsing on public Wi-Fi.
- During mobile banking — Mobile banking is the trend. We will not ask users to go against this either, especially when the service is too convenient to give up. We also know that banks do their utmost to ensure the safety of such applications. However, we propose VPN use while banking via a mobile app to exalt an additional layer of protection for your financial needs.
When using a VPN for online baking won’t help
You shouldn’t employ a VPN if:
- You are using a Free VPN — DO NOT USE A FREE VPN. If you want to access your bank accounts on the go or via a public network, use a premium VPN service instead. Free VPNs are so not free. For one, they rely on a third party for their upkeep, which influences their privacy policies. Second, they are prone to engage in data mining and selling. Third, they introduce a lot of adware as means of generating revenue. It leaves users unprotected. Forth, they employ servers that do not belong to them, which can lead to a breach of your security. The list goes on and on.
- You keep changing your server location to a foreign country — Do not connect to a foreign server and try to access your bank account. Doing so will result in a blockage of your account.
- You use a VPN to visit untrusted websites — If you use VPNs for visiting suspicious websites, chances are your IP will be flagged. If you attempt to access any banking services afterward, the defense system will block your access.
- You don’t practice good internet behavior — If you are not in the habit of practicing good behavior online, using a VPN will not change the state of things. Good internet behaviors include the practice of not visiting untrusted links/websites, staying away from spam, using strong and unique passwords, and so on.
- You use a weak password, VPN is prone to leaks — When your VPN is prone to IP or DNS leaks, you shouldn’t press on. Either change providers or stop using such service for banking because it can lead to unwanted results.
Which features to look for in a VPN to protect your financial interests?
A VPN suitable for online banking should have some intricate features, such as:
- 256-bit encryption — The latest in encryption practices, VPNs that use 256-bit encryption are virtually unbreakable. Therefore, if you are looking for a VPN to solve your banking worries, we suggest one with this level of encryption. Even government agencies and the military rely on this encryption profile.
- Local servers — A VPN that doesn’t provide local servers can’t help you with online banking. If you use a foreign server, the bank’s protection system will flag you and freeze your account. Thus, you need a selection of servers in your country to aid in online banking.
- Automated Wi-Fi protection — Some VPNs provide automatic Wi-Fi defense. Meaning, whenever the VPN detects the use of Wi-Fi, it starts up to protect your traffic. This reduces the chance of human error further.
- Kill switch — It is one of the most sought-after features today. With a kill switch, if your VPN connection fails, your network will immediately terminate all online activity. This will ensure your data doesn’t leak.
- Always on — Similar to automatic protection. The Always-on feature ensures a VPN connection on the start-up of a system. By toggling this feature, you can remain worry-free even if you somehow forget to turn on your VPN.
- Malware and adware blocker — This feature is not prevalent in most VPNs. However, if your target is online banking, we suggest looking for a VPN that provides malware and adware blocking. It will lower the risk of cyberattacks and phishing attempts.
- DNS address and scanning — Most VPNs do not offer a scan at the DNS level. If one does, use that VPN to avoid falling into the trap of fake websites. Also, by changing your DNS address, you can prevent many cyberattacks.
Improve overall online banking safety
Other than a VPN, try to practice the following tips for a safer banking experience:
- Say no to untrusted websites and links!
- Do not reuse older passwords
- Use two-factor authentication
- Use stronger passwords
- Keep your devices and network equipment/infrastructure up to date
- Always lock your screen
- Use antivirus software
- Subscribe to banking notification