Cost of Living5:04The one secret you should never share
Not an internet pro, and need your son or daughter to help you pay your online bills? Giving a friend your debit card to pay for some snacks?
Whatever the case, experts say you should never share your banking information with anyone but your partner. But it’s more common then you might think.
“Sharing passwords at this point tends to be the best option for people, because banks haven’t offered a better option,” Celine Latulipe, a computer science professor at the University of Manitoba, told the Cost Of Living.
“You really shouldn’t be sharing your password, but it’s completely understandable that people do.”
According to a report published by the University of Manitoba in December 2024, many older adults rely on someone to help them with online banking. The university surveyed and performed interview studies with older adults and their caregivers about their banking practices.
And while most often that person — usually a close family member, such as a child — is well meaning, experts say it can still be dangerous to share access to that money, and the private information that comes along with it.
Not so simple
When banking shifted online, Pricilla Buchanan’s husband took care of paying the couple’s bills. He was always the one who handled any banking anyway.
But when he passed away, Buchanan had to take on the responsibility, despite being much more comfortable with a sewing machine than a computer.
“It’s very challenging sometimes just trying to get through to your institution to make arrangements or to check up on something,” said Buchanan, a senior living in Sackville, N.S.
Most of the tasks aren’t too difficult. She can pay the bills and check her balance. But sometimes, she shares her password with her son and daughter, who help her out.
“I trust them,” said Buchanan. “You have to have somebody to fall back on because you just don’t know what happens in your life.”
And Buchanan isn’t alone. According to a Royal Bank of Canada (RBC) survey from 2020, 55 per cent of Canadians have shared their bank card pins or online passwords.
Security risks
Geoff Morton, senior director of fraud strategy at RBC, says there are no circumstances where people should share their banking password or pin.
“People need to take better care of this really sensitive information and ensure that they’re protecting it, like they would protect any other key into a very important building,” said Morton.
That’s because sharing your password doesn’t just give people access to your money. If someone with ill intent gets into your account, they have access to personal information such as your name, address, phone numbers and email addresses.
“And that information can be leveraged in a number of different ways for very negative purposes,” said Morton.
And in many cases, sharing your password violates your service agreement, which can negate the protection that banks will provide.
“You are now liable for those fraud transactions and are no longer guaranteed reimbursement from the bank,” said Morton.
That’s because once that information has been shared, it’s harder for the bank to tell what could be fraudulent activity.
When a bank finds out a customer has shared a password or pin, they’re encouraged to change their information and refrain from sharing it again. In extreme cases, like with significant fraud, the bank may decide to close the account.
Banking alternatives
Latulipe says the options for providing shared access to bank accounts are limited in Canada. People can set up a joint account, but that’s typically reserved for people in committed relationships who share financial assets. Plus, a joint account means the people sharing the account also share financial debts.
She says one possible solution is what are called proxy accounts. In India and the U.K., people can give others limited access to their accounts with their own individual passwords.
During their study, the research team built a fake bank service that allowed for proxy accounts.
When they tested the service, the proxy accounts allowed the older adults to decide what they wanted help, and it made the personal helping feel more legitimate. Proxy accounts also allowed people to choose how much access they want to give.
“That really sets a limit on how much damage could be done if the person who’s been given access decides to act nefariously,” said Latulipe
The account holder could limit things like if the person could send e-transfers or add any new payees. But she says banks may not be in a hurry to do this because of potential liability issues.
Morton suggests that if anyone is having trouble with their online banking, and needs some extra help, they should call their bank.
“The key there is that you, as the account holder, are the one who are logging in to that session with your password and not sharing that with the other individual,” said Morton.
