Is It Safe to Pay Bills Online? Maybe

Summary: Paying bills online is fast and convenient. However, there are a few cyber security risks to be aware of when using online bill payment services. Learn the most secure ways to pay bills online.

Online Bill Payment: Learn How to Do It Securely

The option to pay bills online has now been around for decades. Bill-paying platforms offer conveniences such as paperless transactions, no need to use stamps and avoiding the risk of checks being stolen from mailboxes. Unfortunately, cybercriminals will continue to find ways to exploit online transactions, so it is imperative to have safeguards in place before conducting financial transactions online. The financial and personal data associated with payments are some of our most sensitive information and require extra protection.

What Is Online Bill Pay?

Also known as online banking, internet banking, home banking and web banking, online bill pay is “an electronic payment system that enables customers of a bank or other financial institution to conduct a range of financial transactions through the financial institution's website. The online banking system will typically connect to or be part of the core banking system operated by a bank to provide customers access to banking services in addition to or in place of traditional branch banking.” In addition to banks, merchants across many business categories have created platforms through which their invoices can be paid.

As online bill paying has grown, so has the variety of charges that can be paid. Mortgage payments, car loan payments, credit card bills, medical bills and utilities are a few examples. Generally, online bill paying involves electronic transfer of money from the user’s bank account to a merchant’s or service provider’s account.

Online bill pay is not without its drawbacks. For example, if you rely solely on online payments and forget your login credentials, you could find yourself locked out of your accounts until you can retrieve your credentials or contact your bank for help. Also, many banks charge a fee for online payments. But most importantly, there is always the possibility of getting hacked and having your private information stolen.

So, Is It Safe to Pay Bills Online?

Financial institutions have been in step with data encryption technology to protect their customer data for a long time. Encrypted data is difficult, if not impossible, for cybercriminals to read. In addition, robust encryption will hide all activities done on a financial platform. Furthermore, users can take some simple precautionary steps to protect private financial info and defend against cyberattacks when using online bill-paying platforms.

The Most Secure Way to Pay Bills Online

The following cyber security best practice will help reduce risk during online bill payment as well as keeping your other online activity safer:

• Check the Authenticity of the Domain – To avoid scams, it is crucial to check the authenticity of a platform’s domain (the web address). This caution also applies to bill-related emails from “alleged” banks or merchants. Always examine the spelling of the domain name on emails. Many users have been fooled by domain names with similar yet incorrect spellings. For example, one might not notice the subtle difference between chasebank.com and chacebank.com. Cybercriminals use the same editing software that corporations use. Your best bet is to log into your account through the website to make a payment, not by clicking on a payment due notice you receive in an email.
• Ensure the Website Uses Encryption – Encryption of your data is mandatory. If you are not sure whether a website is encrypted, do not use it!
• Never Use Public WiFi for Financial Activities – Public WiFi is not secure. Hackers often connect to public WiFi and wait for an easy, unprotected target to hack. Therefore, unless you use a Virtual Private Network (VPN) with a hotspot, you should never conduct financial work on an unsecured public connection.
• Ignore and Delete Suspicious Collection Emails – If anything looks unfamiliar or suspicious about an email claiming to be a legitimate bill collector, do not reply. Instead, call the merchant company directly to enquire about your bill. (Do not contact the company through anything on a suspicious email – the contact information probably goes to a fake call center staffed by cybercriminals.)
• Think Before You Click – Never click on links embedded in or attached to an email without ensuring the email is not a scam.
• Use Platforms That Require Multifactor Authentication – Multifactor Authentication (MFA) requires at least two ways of confirming online credentials. Using email or texts to send messages containing security verification codes is an excellent second layer of cyber security to verify your identity. Multifactor Authentication makes it much harder for your data to be breached by cyber thieves. If someone tries to enter an MFA protected account, you will receive a verification code you were not expecting. Contact your bank or credit card security department immediately if you receive an unexpected login attempt notice.
• Keep Device Software Updated – Software updates often contain critical security patches to fix cyber known cybersecurity vulnerabilities. Hackers will exploit these known issues for easy access into accounts. Therefore, keeping system software and all applications updated is vital. Ask your IT technician to set updates to occur automatically.
• Use a Credit Card Instead of a Debit Card – If you use a credit card (or direct transfer from your bank) instead of a debit card, you will have an easier time disputing any erroneous charges.
• Use Secure Password Habits – Use a unique password for every single account. Criminals use software to attempt access to hundreds of accounts at once time using passwords purchased on the dark web. Cybersecurity experts suggest that everyone use a reputable password manager to create, store and remember passwords for you. You need only remember one master password. This step takes a few seconds longer each day, but provides excellent protection.

Online Bill Payment Security: Key Takeaways

Trying to get stolen funds back or recovering from a stolen identity can take months and years – or be impossible. Most fraudulent transfers are sent to offshore accounts and are impossible to recover. Careless online bill paying is a risk not worth taking. Making a few simple changes to protect online bill payment transactions makes good financial sense.

Weighing the risks of online bill pay against the benefits, online bill paying is probably as safe as mailing a paper check. It is also more convenient and eco-friendlier. Spend a little time reviewing and implementing the best practices listed above when paying bills online, to reduce the chances of a breach of your financial and other private data. Cyber security evolves in response to ever-changing cybercrime. Online consumers must keep pace with updated security protocols and never become complacent about cyber protection.

Contact your IT technician to recommend reputable security tools such as VPNs, security software, password managers and multi-factor authenticator apps.