What is online banking?
Banking online means accessing your bank account and carrying out financial transactions through the internet on your smartphone, tablet or computer. It’s quick, usually free and allows you to do tasks, such as paying bills and transferring money, without having to visit a physical branch or call your bank.
Many traditional banks also have free apps which let you use their services from your smartphone or tablet.
In the UK the bank regulators are the Financial Conduct Authority and the Prudential Regulation Authority and they set the financial compensation limits and compensation rules for banks regulated in UK. Banks registered in the UK that offer on-line banking have the advantage that your bank account is protected by the Financial Services Compensation Scheme (FSCS).
A full list of banks and building societies that offer banking services that are considered banks by the Prudential Regulation Authority.
Online Banks - The associated fraud risks NHS bodies, NHS staff and NHS Suppliers face if banking online and some questions to ask yourself
How secure is online banking? Keeping your online account safe
UK regulated banks should take precautions to make sure your online account is safe. These include encrypted websites, timed log outs and many authentication processes. You can ask your bank for more details.
Accessing your bank account online is generally safe. This is as long as you make sure you enter in all the right details when making a transaction and follow a few rules:
Read more about safe online banking on the Get Safe Online website. Find information about Shopping and paying safely online.
What to do if you’re a victim of online bank fraud
Check your account online regularly to spot any irregularities and contact your online bank as soon as possible if you think you’ve been a victim of fraud. Contact Action Fraud on 0300 123 2040 - They may be limited in what help they can offer if your online bank is overseas.
All UK based banks are legally required to refund unauthorised transactions and restore your account to the state it would have been in had the transaction not be made unless it can prove that you’ve acted fraudulently or been grossly negligent.
A UK bank can’t refuse to refund you based on a hunch – they must investigate properly.
If you’re unhappy with the way your UK regulated bank has dealt with your complaint, you can refer the matter to the Financial Ombudsman Service (FOS).
For overseas online banks you will need to check if such a scheme exists.
If using an overseas-based online bank, check it is appropriately regulated and offers a compensation scheme. If you suspect financial crime/ fraud report it to the police of the country your overseas bank is based in.
Please note this alert is not an endorsement to promote any bank. The sole aim is to advise NHS Staff and NHS Suppliers of the potential risks/ limitations of using an online bank.