Know who you are dealing with

Check with the FDIC and NCUA

A independent way to insure the legitimacy of a bank or credit union is to check with the FDIC or NCUA directly to see whether they are insured.

Evaluate the site.
Make sure the online banking site you are considering has depth (many pages), and is well designed. Unless you know a credit union or bank is legitimate, don't accept a poorly designed site with broken images.

Go to the bank or credit union, don't let them come to you.

Don't accept unsolicited email recommendations for online financial institutions. You should search for the credit union or bank; don't let them search for you. In this way you won't be the victim of a web site masquerading as a financial institutions when they are not. In the past few years hackers have gotten email addresses of customers of some financial service companies and sent email to them inviting them to fraudulent sites in order to try to get personal information from them. PayPal experienced this problem, when con-artists sent a email asking consumer to go to the web site to review a large payment in their account. The gave the url of PayPa1.com instead of the correct url PayPal.com (They substituted a 1 for the L). Know your banks online address and go directly to it.

Be aware of foreign rules.

If you are outside of the United States, so you need to check with the governing body of whatever country you plan to bank in before you sign up with a online banking. If you are unsure which body this is, email or call that financial institution and ask who insures the accounts and who regulates them. For US citizens considering banking abroad, be aware that FDIC and NCUA  insurance will not apply to your account. If possible we recommend banking in the United States.

Confirm that an Online Financial Institution Is Legitimate and that Your Deposits Are Insured

Whether you are selecting a traditional financial institution or an online one that has no physical offices, it’s wise to make sure that it is legitimate and that your deposits are federally insured. Here are tips specifically designed for consumers considering banking over the Internet.
 

Read key information about the institution posted on its Web site.
Most Web sites have an "About Us" section or something similar that describes the institution. You may find a brief history, the official name and address of the it's headquarters, and information about its insurance coverage.

Protect yourself from fraudulent Web sites.
For example, watch out for copycat Web sites that deliberately use a name or Web address very similar to, but not the same as, that of a real financial institution. The intent is to lure you into clicking onto their Web site and giving your personal information, such as your account number and password. Always check to see that you have typed the correct Web site address before conducting a transaction.