Yahoo Lifestyle Survey Reveals 84% of Americans Fear Cybersecurity Risks in Online Banking
Researchers from CardRates.com polled more than 1,000 U.S. consumers about online banking and found that 84 percent of respondents said they are worried about cybersecurity.
The research follows the recent closure of the Consumer Financial Protection Bureau by the Trump administration. The CFPB was created after the 2008 financial crisis to protect consumers from “deceptive and unfair” financial practices.
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“As these shifts continue to shape the financial landscape, understanding public sentiment is more important than ever,” said authors of the CardRates.com report.
The research showed that 86 percent of Americans “believe online banking is the future of personal finance; however, 84 percent say cybersecurity in banking is a major concern,” the report stated. Other key findings included that 52 percent of those polled said they “believe online-only banks have stronger cybersecurity than traditional banks” while 67 percent of Americans polled said they feel comfortable using AI-powered tools in banking.
The report also noted that only 29 percent of Gen Z and 33 percent of Millennials visit a bank branch in person once a year or less. The report also revealed the top ways those surveyed secure their banking accounts, which include using two-factor authentication, monitoring accounts for suspicious activity and avoiding public Wi-Fi for banking. Other findings include that 44 percent of respondents said they use online banking apps daily and 18 percent said they exclusively use online-only banks. Fifty-two percent of those surveyed said online-only banks have stronger cybersecurity than traditional banks.
Regarding the threat environment, data breaches can result from user errors, such as sharing passwords, clicking on malicious links or falling for phishing scams. Fraudulent activities can often be traced back to insiders who abuse their access to sensitive information and systems.
There are also regulatory and security challenges. Some financial institutions still rely on outdated fraud detection systems, making them vulnerable to modern, sophisticated cyber-attacks. And regulatory environments across countries vary and can be complex, making compliance challenging and sometimes leading to gaps that can be exploited.
Bobbi Rebell, CFP and personal finance expert at CardRates.com, said cybersecurity breaches are costly and inconvenient for consumers. “Taking steps like using two-factor authentication, taking the time to monitor your accounts for fraud as well as avoiding public Wi-Fi, do take a bit more effort,” Rebell said. “But we should remember that the bad guys also will have to make that extra effort as well and may choose easier targets. Anything that makes it even just a little tougher for criminals is going to be worth the extra effort.”
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