If you’ve been to a bank, lately, you’ve noticed it looks a lot like a ghost town. Yes, it’s always nice to see a friendly face who knows your name and is happy to help you with a question about your account, but it’s not 1970 any more and interpersonal service at banks has given away to our modern digital world.
However, the Federal Deposit Insurance Corporation (FDIC) says that one digital realm where bank customers need to watch their every move is social media.
Banks have taken a shine to social media and are increasingly encouraging interactions on social media to align with the preferences and behaviors of the Next Generation (NextGen) consumers.
Social media platforms offer banks a way to connect with customers in a more personal and engaging manner. Nothing bad there, right?
It allows banks to provide personalized insights, financial advice, etc., and some consumers are more likely to engage with brands through social media and apps, which presents banks with an opportunity to meet their needs through technology-driven financial solutions. Again, nothing bad there.
However, social media platforms are not inherently secure for sharing sensitive financial information. Consumers may risk exposing personal data if they discuss account details or financial transactions publicly or through unsecured channels.
The FDIC lays out its concerns
Quicker answers and finding out about new deals and products aside, banking regulations – including those from the FDIC – apply to activities on social media. These regulations prohibit false advertising, misrepresentations of deposit insurance coverage and the misuse of the FDIC’s name or logo.
Another concern is that consumers need to keep in mind that posts (for the most part) are public and can be seen by others. That means you shouldn't post any personal details, account info, or anything confidential -- especially your Social Security number.
“Reputable social media sites will not ask you for your Social Security number, credit card or debit card numbers, or your bank account passwords,” the FDIC said.
“When you need to provide the bank with specific information like your account number or balance, good options include calling the bank directly or using a secure communication channel such as the bank's online or mobile banking platform.”
And then, there are scammers
The third leg of the FDIC’s concern list are scammers. Above everything else, you should be careful about sharing things online that a scammer could use to pretend to be you.
Even info that seems harmless, like your pet's name or your old school, could be helpful to an identity thief. This kind of information is sometimes used for those security questions banks ask to verify your identity – so avoid posting it publicly.
Think twice before sharing your birthday on social media too, depending on who might see it. Here’s how to change that on Facebook and Instagram.
Also, be aware of "cookies" – those little bits of info websites send to your browser. They can be used for things like remembering your login info, but also for other purposes. You can usually adjust your browser settings to control cookies or limit how your information is shared. AllAboutCookies provides a step-by-step guide for doing this on whatever browser you use.
Last but not least, double-check where you're getting your social media info from. Clicking a link might take you to a totally different company's page with its own set of rules.
Social media: Don’t bank on it
Some banks allow you to access your online banking through social media. That might seem convenient, but the FDIC has separate concerns about that.
“Make sure you are on a secure page and on the bank’s legitimate site before you enter your username, account number, or password. Look for clues that might indicate that the site is fraudulent, such as misspellings, a low number of ‘likes’ in a profile, or grammatical errors in the web content,” the agency said.
“If only a few consumers are subscribed to a social media page that supposedly belongs to a very large bank, that could be an indication that the page you are on is not the bank’s official page. You should also look for a padlock symbol on your web browser. If you have any doubts, go directly to your bank’s website instead of linking to it from a social media site.”
Additional resources you might find helpful include:
FDIC, Know Your Risk Protect Your Money
FDIC Consumer News, Scammers and Fake Banks
FDIC Consumer News, Banking With Third Party Apps
Digital Literacy, Information Literacy.gov
Securities & Exchange Commission (SEC), 5 Ways Fraudsters May Lure Victims Into Scams Involving Crypto Asset Securities – Investor Alert
Commodities & Futures Trading Commission (CFTC), Customer Advisory: Avoid Forex, Precious Metals, and Digital Asset Romance Scams
Consumer Financial Protection Bureau (CFPB), Can a debt collector contact me through social media?