We all know that online banking is very fast and extremely helpful to everyone but it also has quite a few risks. American banks are the pioneers of online banking system. All American banks use high-end latest technology for online banking system. Though there have been no cases of hacking of banks network but there are always some intrusion into the online accounts of the customers from time to time.
If we see the history of online banking everywhere on this globe there is risk in it but if we look at American banking then risk seems to be too much because Americans are the ones who frequently use online banking. Most number of online banking users are’ in America.
Almost all Americans pay their bills through online banking. Americans do most of their shopping through internet and they pay their shopping bills through online banking which makes their online account very vulnerable and it gets exposed to hackers who constantly try to hack the online account by phishing. Many Americans have lost their savings because of phishing. Most American online banking users don’t have much knowledge of internet security which makes them easy targets.
American banking system has certain risk factors as far as online banking is concerned. Many banks in America do not use encrypted service which allows hackers to intercept user data when data is transmitted between the user and the banks network. At times the internet service providers do not provide encrypted service to the user hence even if the banks have high encryption the transmitted data can be easily read by the hackers.
The worst risk of using American online banking is that American banking system can kill your savings and make you bankrupt in no time because of high service fees they charge on each transactions you do through online banking. In America there are many banks and all of them provide high-end service to its online banking customers hence to recover the cost and make profit they charge high fees. Online customers in America are offered very low rate of interest on their savings.
American banking system is well known for providing money on credit which has become the source of economic slow-down in recent times in America. This system is also being used in online banking model and customers are charged very high interest rates hence if these credits are not returned then another financial bubble might explode in America and many banks would collapse.
Tips and comments:
American banking system has always been run on credit which brought down many well known banks during last American economic slow down due to bursting of financial bubble and this might happen again in few years due to similar strategy used for online banking. In fact America is still reeling in recession and its economy is still down. There seems to be too many financial risks taken by American banks in case of online banking. Other then financial constraints online banking also has hacking issues which shatters many online banking account customers due to loss of savings.
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