Online banking is becoming more and more popular. Instead of having to go to a physical bank branch, you can now do everything from the comfort of your own home. But with this increase in convenience comes an increase in risk. After all, if your bank account information is stored online, that means it’s vulnerable to hackers.
So, what can you do to protect yourself? One option is to use a service like Plaid. But is Plaid safe? Let’s take a closer look.
What Is Plaid?
Plaid is a service that allows you to connect your bank account to other financial apps. This means that instead of having to login to your bank’s website every time you want to check your balance or make a transfer, you can do it all from the Plaid app. Plaid is FDIC-insured and uses 256-bit encryption to protect your data. Furthermore, Plaid is registered with the Better Business Bureau and has an A+ rating.
Are There Any Risks?
As with anything else related to online banking, there are always going to be some risks involved. However, by taking some basic precautions—such as using a strong password and not sharing your login information with anyone—you can minimize these risks. Additionally, Plaid offers fraud protection services that can help you recover any money that may be stolen as a result of fraud or identity theft.
The main concern with Plaid is that any risk of a hack is increased because now your information is in Plaid as well as your bank. You should, rightfully, be suspicious of anyone who asks for your bank account.
Another risk you might not have considered (and that seems to be minimal at this time) is that giving your login information to a third-party is generally considered to be a violation of your Terms of Service (ToS) with your bank account. It’s highly unlikely that your bank will terminate your account for using Plaid or another service that asks for a login, but it’s a risk factor to consider, especially if the service is newer and less known or from outside the US.
Is Plaid Safe?
Overall, Plaid is a safe and convenient way to manage your bank account information. By taking some basic precautions and utilizing the fraud protection services that Plaid offers, you can help ensure that your data remains secure.