In light of recent events like the Marks and Spencer breach and recurring banking system failures, many people are becoming more cautious about relying solely on digital money.
Despite this, our society is increasingly geared towards digital transactions, with cash becoming less common in retail settings. So, how can you be ready and adapt if your online banking experiences disruptions, and what rights do you have in such situations?
The first step is to withdraw some cash from your bank. It’s advisable to have a reserve of a few weeks’ worth of expenses in cash, securely stored in a fireproof container at home. This ensures you can cover immediate payments like groceries or quickly reimburse someone who makes an online payment for you while your online banking is down.
It is crucial not to withdraw all your savings. This cash reserve is for emergencies such as system outages or account issues, like being locked out during a fraud inquiry if your identity is compromised.
Diversifying your funds across different banking institutions is recommended, especially if you have more than £85,000 saved up. The Financial Services Compensation Scheme guarantees only up to £85,000 per banking group. So, spreading your money across various banks enhances your protection.
Maintaining multiple current and savings accounts across different banks provides backup access for online transactions in case one bank group faces disruptions. Refer to the Bank of England’s list of banking groups to ensure your funds are spread out effectively for optimal security.
Keeping track of your account balance regularly is not just good money management but also aids in recovering missing funds or spotting fraudulent activities promptly. Some banking apps allow screenshotting for record-keeping, or you can opt to print out mini-statements at ATMs weekly.
While banks maintain accurate records, the risk of large-scale cyberattacks compromising traceability of your funds exists. Maintaining personal records will facilitate the recovery of missing funds if such incidents occur.
In the event of banking IT issues, ensure you have access to online banking via the website as a backup plan if specific platforms encounter problems. Safely store your bank details where you can access them if your phone is lost or stolen to freeze accounts promptly or visit a branch for assistance.
When facing banking disruptions, inform recipients of upcoming payments promptly. This proactive approach can help mitigate any issues arising from outages, such as freezing late payment fees or facilitating reimbursements post-incident.
If financial challenges result from digital banking problems, the bank is responsible for covering associated fees. For instance, if a banking error causes you to incur costs due to delayed payments, the bank should refund any related charges.
In cases of significant inconveniences like missed work hours or delayed transactions, banks are obligated to address these issues. Submit a formal complaint outlining all financial and non-financial costs to the bank. If unresolved, escalate the matter to the Financial Ombudsman for mediation and potential compensation based on the evidence presented.
By taking these precautionary measures and understanding your rights, you can navigate digital banking disruptions more effectively and safeguard your financial well-being.