Connecticut BBB says New Survey Sheds Light on Mistrust of Online Banking

Consumers say They Would Rather "Break a Bone" than Have their Personal Information Stolen  
Connecticut Better Business Bureau says a new public opinion poll may reveal why three quarters of American consumers shy away from online banking. In response to a rather unusual question, eighteen percent of respondents told pollsters they'd rather suffer a broken bone than have their personal information compromised.
 
The information is contained in a new Harris poll conducted last month, called the "Consumer Trust Survey: Data in the Hands of Companies and Government."
 
Aside from security concerns, one in four consumers is worried that automatic bill payments can result in unauthorized debits to their bank accounts.
 
After several years of high profile data breaches, mistrust of the way their information is handled runs deep. Only one to two percent of consumers trust their personal information will be protected by big corporations, smartphone manufacturers, social media sites and search engines. Fifty-one percent say they don't trust anyone with their data.
 
"The results of the poll tells us much about consumers' fears of identity theft and other types of fraud," according to Connecticut Better Business Bureau spokesman Howard Schwartz. "A growing number of them understand to what extent their personal information is at risk because of hacking of high-profile organizations, as well as the sharing of their data with third parties."
 
Online banking allows most of the conveniences of a bank branch, as well as automatic bill paying for fixed monthly amounts such as for a mortgage or line of credit. Bank customers also can arrange automatic payment for bills that vary from month to month for utilities, gyms and other goods or service providers as part of a contract. To protect consumers, third parties are obliged to tell you in advance of any change in the amount of an upcoming debit.
 
Fortunately, federal law protects consumers who use recurring bill payments. Regulations give consumers the right to stop automatic debits at any time, which is particularly important if you cancel a contract or a business closes its doors. The law also gives you the right to dispute unauthorized debits and get your money back, as is the case with credit card transactions.
 
Connecticut Better Business Bureau offers the following tips to protect yourself when banking online and avoid problems with recurring online payments:
 
Know who you are dealing with - Check out the business at bbb.org to make sure it is credible and legitimate before setting up automatic debits.
 
Choose who controls the withdrawals - Paying bills online is handled by your bank, but you can also give permission directly to a company to make recurring withdrawals. Keep an eye on your account balance to avoid overdrafts, insufficient fund penalties and unauthorized charges.
 
Understand the terms and conditions - If you allow a third party to automatically debit your account, ask lots questions about the process, and if it's not clear, contact your bank or credit union.
 
Know your rights - Think twice if a business pressures you to pay by automatic debit.  Except for a line of credit, no company is allowed to require that form of payment as a condition for obtaining a loan.
 
When you want to stop recurring debits, call and write your bank, as well the company that is debiting your account.
 
Be selective about who you give your banking information to before arranging automatic monthly online payments. Financial institutions have smart device apps for consumers who are comfortable with online banking.
 
Contact your bank or credit union if you have any questions or concerns about internet banking. File a complaint with Better Business Bureau if you have a dispute that you can't settle with a particular vendor.
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Submitted by Redding, CT

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