6 Essential Online Banking Security Tips Every Business Owner Should Know

1. Choose Strong Passwords

Your password is the first line of defense for your online banking account. To keep your account secure, make sure your passwords are unique and difficult to guess.

Common Mistakes to Avoid

• Using short or common passwords
• Repeating the same password across multiple accounts
• Reusing the same passwords from old accounts
• Sharing passwords with coworkers or family members
• Saving passwords in browsers without encryption
• Writing passwords down in easily accessible places
• Not updating passwords regularly

How to Create a Strong Password

• Use a longer password rather than a single word
• Mix lowercase and uppercase letters
• Include numbers and special characters (e.g. !, #, %)
• Avoid personal information like birthdays or names
• Skip common sequences like “12345”
• Update passwords every 3–6 months

Pro Tip: Use a password manager to generate and store strong, complex passwords. This way, you don’t have to remember them, and your online banking stays secure without the hassle of juggling multiple passwords.

2. Enable Two-Factor Authentication

Two-factor authentication (2FA) is a key step in strengthening your online banking security. It adds an extra layer of protection beyond the traditional username and password by requiring you to provide two forms of authentication to confirm your identity. Unless you provide both authenticators, you will not be granted access to the account or service.

How 2FA Works

• Enter your regular login credentials
• Provide a second factor, such as:
  • A one-time code
  • An authentication app code
  • A physical security key

Why it Matters

• Makes it much harder for hackers to access your account even if they know your password
• Protects your sensitive information and business funds from unauthorized access
• Provides peace of mind when logging in from new devices or locations

Pro tip: Always enable 2FA on all banking and financial accounts, and use an authenticator app rather than SMS when possible for stronger security.

3. Avoid Using Public Wi-Fi

Public Wi-Fi is convenient when you need to stay connected on the go, but it’s not always safe to use. One of the biggest risks associated with using public Wi-Fi is that it can be unsecure and vulnerable to attack. Hackers can use this vulnerability to steal your personal information or install malicious software on your devices without you knowing. In fact, a U.S. survey found that nearly 4 in 10 adults reported their private data was compromised after using public Wi-Fi in a restaurant or cafe.

If you must access banking on public Wi-Fi:

• Disable public file sharing. Any information you share while using public Wi-Fi is susceptible to malware attacks.
• Only use sites that are secure. You can tell a site is secure if a lock symbol or “https” appears in the  URL. 
• Use a virtual private network (VPN). A VPN creates a private network that only you can access, which helps to protect your data while you’re online.

Pro Tip: If possible, avoid accessing online banking on public Wi-Fi altogether. If you must, always use a VPN and log out of your accounts immediately when finished to boost your online banking security.

4. Be Aware of Phishing Scams

Phishing is one of the most common ways hackers target your accounts and compromise online banking security. “Phishing” is when criminals use scam emails, text messages, or phone calls to trick you into visiting fake websites. If you go to these sites, scammers are able to download viruses onto your device and steal sensitive information, such as passwords, account numbers, or Social Security numbers.

To Protect Yourself

• Recognize: Look out for common signs of phishing. These include poor grammar or misspelled words, requests for personal information, urgent language, and incorrect email addresses or links (ex: “amazan.com”).
• Resist: If you suspect a message you’ve received may be phishing, resist the temptation to click on any links or attachments. Instead, report the activity in order to protect yourself and others.
• Delete: Delete the message or report as spam. Don’t reply or click on an “unsubscribe” link.
• Report: After clicking on a suspicious link or opening a potential harmful attachment, immediately update your computer’s security software. Once updated, run a full scan and remove any threats. If you believe your information may have been compromised, you can report the activity to the Federal Trade Commission.

Pro Tip: Always verify the sender before clicking any links. If a message claims to be from your bank, contact your bank directly using a known phone number or official website to confirm its legitimacy. This simple habit can significantly improve your online banking security.

5. Keep Your Devices and Apps Secure

Your phone, tablet, and laptop are gateways to your accounts. Keeping them secure is essential for online banking security and protecting your business’s sensitive information.

Best Practices for Device Security

• Keep your software up to date. Updates often include important security patches that fix vulnerabilities.
• Download apps only from trusted sources. Stick to verified app stores like the Apple App Store or Google Play.
• Lock your screen. Use a passcode, fingerprint, or facial recognition to protect your device.
• Avoid saving sensitive details. Don’t store passwords or account numbers directly on your devices.
• Enable automatic updates: This ensures you receive the latest security fixes without needing to remember them
• Use device encryption: Encrypt your phone or laptop to protect data if your device is lost or stolen

Pro Tip: Set up remote wipe or device recovery features on your devices. If a device is lost or stolen, you can erase your data remotely to keep your online banking and personal information secure.

6. Stay Proactive Against Fraud

Fraud can happen to any business, regardless of size. From phishing attempts to fake invoices, fraudsters use a variety of tactics to gain access to your accounts or sensitive information. Taking proactive steps plays a major role in protecting your online banking security. 

 

Here’s how to strengthen your defenses:

• Keep business and personal accounts separate. This reduces risk and makes it easier to spot suspicious activity.
• Monitor your accounts regularly. Reviewing transactions frequently helps you identify unusual activity early.
• Enable multi-user access controls: Limit who can approve transactions and set permission levels for team members.
• Educate your team. Make sure anyone with account access understands how to spot suspicious messages or payment requests.
• Verify payment and vendor details. Always double-check before approving large or unexpected transfers.
• Use fraud protection tools. Many financial institutions offer self-serve features and automated monitoring to flag potential issues.
• Stay informed on emerging scams. Cyber threats evolve constantly, so keep up with alerts from your bank or industry organizations.

Pro Tip: Combine multiple preventative measures, like transaction alerts, 2FA, and account monitoring, to create a layered defense, making your online banking security much harder to breach.

Mastering Fraud Prevention

Effective fraud prevention starts with knowing where risks originate and how they show up in day-to-day operations. Threats can come from both outside your business and within it, and each requires a different approach to stay protected. Understanding how these threats work allows you to put the right precautions in place, master fraud prevention, and stay one step ahead of both potential threats and your competition.

External Threats

External attempts often target your business through communication channels or payment workflows. Common examples include:

• Phishing: scammers impersonating banks or vendors
• Check fraud: altered, intercepted, or washed checks
• Invoice scams: fraudulent payment instructions
• Vendor impersonation: spoofed emails requesting new payment details

Reducing External Fraud Risk

• Use advanced email security and spam filters
• Confirm unexpected payment requests directly with a vendor or client
• Require independent verification for vendor changes
• Enable transaction alerts and notifications to receive real-time alerts for deposits, withdrawals, large transfers, or unusual login activity
• Review account activity daily to spot unusual transactions early 

Internal Vulnerabilities

Fraud may also come from inside an organization. Internal fraud is less visible but equally damaging. It typically stems from access misuse or gaps in financial oversight. Examples include:

• Payroll manipulation
• Misuse of company funds
• Theft of cash, checks or financial records
• Altered or redirected vendor payments

Preventing Internal Fraud

• Separate financial responsibilities so no one person controls an entire process
• Restrict access to online banking credentials and revoke access promptly if roles change
• Regularly update devices and banking apps to patch vulnerabilities that fraudsters can exploit
• Use accounting systems with detailed audit trails
• Require dual authorization for high-value or sensitive transactions
• Conduct periodic internal audits to validate accuracy and controls

Together, these measures strengthen your fraud prevention strategy while giving your business greater clarity, and control over financial activity.

How Grasshopper Keeps Business Banking Secure

The most effective way to ensure that you are staying safe when online banking is to partner with a service that you can trust. When banking with Grasshopper, you can feel secure throughout every step of the process—from application to daily account management—knowing that your accounts, data, and transactions are protected by enterprise-grade security and a team of people dedicated to safeguarding your business.

Key Features that Protect Your Business

• Trusted .bank domain: Our website and online portals use a verified .bank domain, which is a secure and trusted space on the internet reserved specifically for financial institutions
• Bank-level encryption: Data protected in transit and at rest with advanced encryption standards
• Enhanced identity verification: Advanced checks  during onboarding ensure that accounts are opened safely and legitimately
• Two-factor authentication (2FA): Adds an extra layer of verification for every login, making it harder for unauthorized users to access your accounts
• Role-based access controls: Multi-user businesses can assign specific permissions to team members, limiting access to sensitive actions
• Dual approval for transactions: Require two separate authorizations for large or sensitive payments, ensuring multiple eyes review critical account activity before funds are moved
• Advanced debit card controls: Protect your debit cards with a  multi-layered approach  and easy self-serve tools
• Continuous fraud monitoring: Our systems constantly review transactions to detect suspicious activity before it affects your accounts
• Account alerts & notifications: Instant notifications for deposits, withdrawals, and transfers keep you informed of account activity
• Secure session timeouts: Logs user out automatically to prevent unauthorized access
• Routine system reviews: Regular evaluations of our systems help strengthen defenses against evolving threats

And this list is just the beginning. Together, with your vigilance and our comprehensive online banking security measures, we can keep your business safe, resilient, and ready to face any potential threat.

Additional Best Practices forOnline Banking Security

Keeping your business safe online requires more than just strong passwords or two-factor authentication. It’s about adopting a comprehensive approach that combines proactive habits with trusted online banking security features. Simple, consistent habits can go a long way in protecting your accounts, and you can start by reinforcing your online behavior. 

How To Strengthen Your Online Behavior

• Educate your team: Train employees on spotting phishing attempts, scam invoices, and other financial threats.
• Limit social media exposure: Avoid sharing sensitive business details, upcoming transactions, or financial info online, as scammers can use this for social engineering.
• Use secure, verified apps: Only download banking or financial apps from trusted sources like official app stores.
• Secure your devices: Lock phones, tablets, and computers, and avoid storing sensitive banking information in notes, screenshots, or easily accessible files.
• Back up sensitive data: Keep encrypted backups of critical financial information in a secure location.

These simple steps, combined with our advanced security infrastructure, not only help create a strong defense against evolving threats, but also give your business the confidence and resilience to grow securely in an increasingly digital world.

Digital banking should empower growth, not create risk. With Grasshopper, you can rely on a platform built to protect your accounts, funds, data, and business around the clock. Join thousands of businesses who trust us for secure, hassle-free online banking, and experience the peace of mind that comes with knowing your business is truly protected. Start your application today and get set up in minutes!