While sending or receiving money abroad, you may have heard the term” PayPal.” It is one of the oldest and favorite services available. Now, the question arises here, that what security measure does PayPal provide you while connecting your financial accounts? Is it secure enough that we can connect our banking accounts? That may be the question of buyers and sellers who are running their businesses and transfer thousands of dollars through PayPal, so let’s find out some of the security features and tools of PayPal.
1. The Layer of Protection
If you have ever used the online credit card or given a check to some dealer, you’ve pulled some threat that you carry when you provide that data to PayPal. When you offer a personal check to someone, they can easily access your bank account numbers, and it would be easy for them to get money from that account.
- Using PayPal could be even better than providing your credit card details or bank account details to the site from which you purchase. That’s because all of your information is stored in one place, and that place is PayPal.
- You don’t have to provide the banking details to several online shopping websites. If anything wrong happens, you don’t need to cancel the cards and update your auto billers. Just change the card number and password, and it will secure the PayPal account.
- To ensure the secure data transfer between the servers of PayPal and your browser, PayPal has been using SSL encryption. All the information stored in the servers is encrypted.
2. Data Security
The website of PayPal is highly encrypted and secured. All of your data is hidden and protected from the prying eyes. You need to connect with a secure network while accessing the website of PayPal. The security standards are as high as in any major financial institution. PayPal also offers rewards to the hackers who discover the flaws in the network by using the “White Hat” technique. It might be hacked, but it would be hard.
3. Two-Factor Authentication
There is 2 Factor authentication in PayPal. You will have to enable it yourself because it is not enabled automatically. This implies that you will have to finish an additional verification step, but that also made hacking of your account harder. In 2 Factor authentication, you begin with putting the password of your account, and then your device receives a security code. As soon as you enter the password, code is accepted.
Without that security code, it is almost impossible for anyone to access the banking account details because hackers would surely need your device to access that code.
4. Email Authentication
The word “PayPal” is used to cover up assaults on identity theft. PayPal has currently collaborated with the most prominent email providers like Yahoo and Gmail. This collaboration provides the authenticated outgoing emails. By this feature, you will only receive emails directly from the verified PayPal domain, and your email provider will recognize only the valid emails. Ransomware emails from the phony domains will be taken down immediately.
Yahoo and Google will do all the tasks themselves, and you don’t have to scrutinize the valid emails. But you still should be very cautious. Whenever you receive the mails, always check the spellings of the sender’s mail ID and keep learning the new ways of recognizing the phishing emails.
5. Prepaid Card
A prepaid master card can be ordered with the PayPal account. Some of the websites do not accept PayPal for accessing the online accounts so that you can use the Master card. This master card can protect you while online shopping and thefts as it minimizes the risks of online threats. If you put the prepaid card details on any malicious website, hackers can access the data.
But the good news is if you pay with a prepaid card, only your funds of that account will be accessed by the hackers. They cannot access your life saving because the prepaid cards don’t have credential information, which can be used by the hackers to steal your identity.
6. 3D passcode
For secure online shopping, PayPal provides you an additional security feature of 3D passcode. The other password or code that you set up with the bank is required in this type of verification. This verification depends upon your card issuer or bank. For the American Express credit card holders, you may have recently seen many websites marked as “Verified by Visa,” “MasterCard SecureCode,” or “Safekey.”
Is PayPal FDIC insured?
No, PayPal balance is still not FDIC-insured, and PayPal has been exploring ways to provide customers with pass-through security, but the coverage is still not widely available. So, if PayPal became bankrupt, you may lose a lot of money placed in your account of PayPal. The best way to deal with that problem is to try to keep your balance very low in PayPal account and withdraw the money from that account, and you can deposit that balance in your local bank account.
Security tips
Regardless of how many PayPal security tools, many individuals are still falling for frauds and losing their money. You don’t want to be any of them. So, to secure your password, consider the following precautions:
- Always use the updated versions of antivirus in your device. The latest updates always provide you more security against hackers and cybercriminals.
- You must learn about how to recognize spamming websites and phishing emails.
- Stop using public wifi to access online banking accounts. Hackers can easily capture your data packets while being on the same network.
- Virtual Private Network provides you a new security wall against hackers.
- Always use secure and unique passwords for your accounts.
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