90% of British adults now bank online. That’s not a niche group of tech enthusiasts – it’s virtually the entire population. The convenience of digital finance has become such an important part of our lives, whether it’s checking balances during the morning commute or managing investments from the sofa.
But while the physical high street branches continue to disappear, the collective anxiety around digital security has naturally intensified. Cybercriminals are getting more confident and users are scrambling to find extra layers of protection to shield their hard-earned savings.
So the question is – how safe is the digital landscape? More specifically, if you’re using a VPN, does it make your online banking more secure or cause more problems?
The Quick Guide To Understanding VPNs
A Virtual Private Network (VPN) forms an encrypted tunnel between your device and the Internet. Which means that nobody can see what you’re actually doing online – not criminals, not snoops and not even your Internet Service Provider (ISP).
If anyone were to check the network, they would be met with scrambled data that makes absolutely no sense. In other words, your information is kept private.
What VPNs don’t do though is add security to your bank’s systems themselves. Your bank should already have security measures in place, whether it’s HTTPS encryption, two-factor authentication or fraud monitoring. All a VPN does is protect your end of the connection.
Why Would You Need To Use A VPN?
When you use your own broadband at home, your risks of getting hacked are relatively low. Not impossible, but low. But as soon as you use public Wi-Fi, whether it be at the airport, a hotel or a restaurant, you’re now on a shared network and that changes things.
A fairly common tactic criminals use is to create a fake Wi-Fi hotspot with a name that you would deem trustworthy. It could be the name of the location that you’re at and you might connect, thinking nothing of it. Everything you do online after that point can be intercepted while you are none the wiser.
A report from Vivid Repairs estimated that digital banking fraud cost the UK approximately £360 million alone in 2024 – the stakes are real and the threat is very much there.
Would Your Bank Block You For Using A VPN?
The irony is that some banks will flag VPN connections for security reasons, especially if it looks like you’re logging in from another country. Banks monitor location as part of their fraud detection systems so if your VPN routes you through a server somewhere in Europe while you’re in the UK, it may trigger a security alert.
Fortunately, the fix is fairly straightforward. Use a VPN provider that has UK-based servers and connect to one of those before opening your banking app. You still get the encryption benefits without confusing your bank’s fraud systems.
According to TechRadar, the UK now ranks 8th globally for VPN adoption so banks are becoming increasingly aware that their clients use them. While most of the major UK banks won’t outright block a VPN connection, it’s worth checking your own bank’s guidelines.
Here’s What A VPN Won’t Protect You From
If you are using a VPN, it’s absolutely worth knowing what it actually does and doesn’t cover. First and foremost, it protects your connection. Outside of that, you could still be open to other risks.
Phishing Attacks
If you click on a link in a text or email that seems legitimate from someone pretending to be your bank and hand over your information without checking first, a VPN can’t help. It’s best to physically call the bank to confirm if they are actually trying to contact you.
Malware On Your Device
If malware or a virus gets onto your device – usually through clicking suspicious links or files – a VPN can’t stop it from monitoring what you do on it. Like with suspected phishing attempts, always try to verify what has been sent to you before you rush to open it.
Your Bank’s Data Practices
Some people use VPNs because of their no-logs policy. Of course, this is usually something only reputable providers offer – try to avoid the free ones. A no-logs policy means that your data is not stored on the provider’s end. However, a VPN can’t change how your bank stores or handles your information on their end.
