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parts are entered when you begin each online banking session.
A third option, which is used in many European countries, provides customers with devices which can create single-use passwords that are unique to each customer's token. This is called 2FA. Many other options are constantly being developed and tested. The Federal Deposit Insurance Corporation (FDIC) has issued regulations which require banks to implement more secure mechanisms.
Fraud
Another concern that causes some customers to avoid paying bills online is they consider it to be too vulnerable to fraud. Although online services are never 100 percent safe, the number of fraud victims from online banking is very small. Conventional banking may be more susceptible to fraud than online banking. Credit card fraud, identity theft, and signature theft are much more common "offline" than online.
Advantages of online funds transfer
• Uses less paper
• More convenient
• 24-hour access
• Saves money—no stamps, no checks to buy, helps avoid late fees
Disadvantages of online funds transfer
• Downtime—websites sometimes are unavailable due to power
outages or other operational problems
• Your computer—sometimes your own computer will have problems with connecting or compatibility
• Initial time investment—it takes time to get all of your information set up online and to learn how to use each website
• Fees—some services charge a monthly fee for their use
Online Banking 19