You've heard that online account access saves time, and time, after all, is money. You no doubt have friends or business associates who happily access their financial institution accounts at any time of night or day, and revel in the convenience. Sure, you'd like to simplify your life and finances this way. But you're also a little wary, because isn't it a hacker jungle out there? A looming concern remains in the back of your mind: What about security?

The security most important to you in online account access is invisible, unlike the financial institution vaults, surveillance cameras, and lobby guards in the financial institutions of our youth. When a financial institution offers an online account service, it's not opening up its mainframe computer systems to a stampeding public. Usually, the financial institution installs a group of separate computers that stand between the mainframe computer and the network that will deliver data to your computer. At several points along the way, protection is built in.

Depending on how you access your online account, your account's security could be guaranteed in a variety of ways. The two most common means of access--via your financial institution's Web site or through a personal finance program, such as Intuit's Quicken and Microsoft Money--share certain security safeguards. How your particular financial institution handles security for its online account customers should be included in informational literature at your financial institution, or on its Web site. Among the most common security features incorporated into online account access (and some ways to make them more effective) are:

Firewalls
A key element of any financial institution's security policy is the firewall, a computer that protects the financial institution's computers and data from being accessed by any outsider.The firewall is located at the point where the financial institution's network connects to the outside world. At that "entry" point, the firewall acts like a gatekeeper, checking each attempted delivery of data against a list of data that is and is not allowed to pass through. Anything that doesn't meet the strict specifications of the security policy doesn't make it past the firewall.

Data Encryption
Usually, financial institutions employ software capable of scrambling data with secret codes to protect digital information as it travels between the financial institution and your computer. Encryption guarantees that your data will be unintelligible to anyone that may encounter it as it passes over the Internet. SSL encryption (for Secure Socket Layer) is used for most Web-based online account access and is even incorporated into some personal finance software such as Quicken 99 or Money 99. Your data is encrypted by the SSL software on the financial institution's computer, and decrypted (unscrambled) by the SSL software in your Web browser. Your financial institution will inform you which browser you need, since it must be able to support the level of SSL encryption required by your financial institution when using its online account service. The latest browsers have 128-bit encryption, considered to be the safest method for securing information passed over the Internet.

Passwords and PINS (Personal Identification Numbers)
These are access codes used to identify yourself to the online account system. To get the maximum protection from your password, it's best to choose one that's hard to guess, so avoid using your initials or the names of family members. Using a combination of letters and numbers makes your password much harder to guess, as does using a longer password--if you have the option of a ten-character PIN, use all ten characters. For a PIN, the obvious choices to avoid are birthdays, social security numbers, addresses, and phone numbers.

Another layer of security worth noting is not technical but legal. Although online customers rarely require the protection provided in the federal government's Regulation E, that regulation does state that if you notify your financial institution within 48 hours of discovering a fraudulent transaction, your liability is limited to $50.

A final, crucial link in security is provided by you, the user. With access to online account functions available at more and more places-- including at work, in libraries, and even on public transportation, thanks to the ubiquitous laptop--it's critical that you never leave the computer unattended when you're in the middle of an account session.

If you would like more detailed information about your financial institution's security, try calling or e-mailing the financial institution's customer service group. Ask to consult with someone who specializes in the online services area.

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