Online banking can be challenging. But don’t share your passwords, say experts

Not an internet professional and need your son or daughter to help you pay your online bill? Do you pay for some snacks with your debit card for a friend?

In any case, experts say you should never share bank information with anyone except your partner. However, as you might think, this is more common.

Celine Latulipe, a computer science professor at the University of Manitoba, told The Living expenses.

“You really shouldn’t be sharing your password, but people can fully understand.”

according to Report released by the University of Manitoba In December 2024, many seniors rely on someone to help them with online banking. The university conducted surveys on banking and conducted interview studies on elderly people and their caregivers.

And, while the most common people (usually a close family member, like a child) are good to mean, experts say sharing opportunities for that money and the private information that comes with it can still be dangerous.

Not very simple

Pricilla Buchanan’s husband took care of the couple’s bills while the banking business was moving online. He has always been the one who handles any banking business anyway.

But when he died, Buchanan had to take responsibility, although more comfortable with a sewing machine than a computer.

“Sometimes it’s very challenging to just try to get into your agency to arrange or check something,” said the senior citizen who lives in Sackville, New Jersey.

Most tasks are not difficult. She can pay the bill and check her balance. But sometimes, she shares her password with her son and daughter, who helps her.

“I believe them,” Buchanan said. “You have to be someone going back because you just don’t know what’s going to happen in life.”

Buchanan is not alone. according to Royal Bank of Canada (RBC) 2020 Survey55% of Canadians share their bank card pins or online passwords.

Security risks

Geoff Morton, senior director of fraud strategy at RBC, said that under no circumstances should people share their bank passwords or PINs.

“People need to take better care of this really sensitive information and make sure they protect it just like protecting any other key into a very important building,” Morton said.

That’s because sharing your password can not only make people get your money. If someone intends to enter your account, they can access your personal information, such as your name, address, phone number and email address.

“This information can be used in many different ways to achieve very negative purposes,” Morton said.

In many cases, sharing a password violates your service agreement, which may negate the protection the bank will provide.

“Now, you are responsible for these fraudulent transactions and no longer guarantee reimbursement to the bank,” Morton said.

That’s because once this information is shared, it’s hard for banks to say what could be fraudulent activity.

When banks discover that customers share passwords or PINs, they are encouraged to change the information and avoid sharing the information again. In extreme cases, like serious fraud, banks can decide to close the account.

Bank alternatives

In Canada, the option to provide shared access to a bank account is restricted, Latulipe said. People can set up a joint account, but this is usually reserved for people who share financial assets. Additionally, a shared account means that the person who shares the account also shares financial debt.

One possible solution, she said, is the so-called proxy account. In India and the UK, people can get others to access their accounts through their personal passwords.

During their research, the research team established fake banking services that allowed agency accounts.

When they test the service, an agent account allows older people to decide what help they want, making personal help more legal. A proxy account also allows people to choose how much access they want to provide.

“This does set limits how much damage it can be caused if the person who has access decides to take evil actions,” Latulipe said.

The account holder may restrict whether the person can send an electronic transfer or add any new payees. But she said the bank may not rush to do so due to potential liability issues.

Morton suggests that if someone is in trouble with online banking and needs additional help, they should call the bank.

“The key is that as an account holder, you are the one who logs into the meeting with your password and doesn’t share it with others,” Morton said.