Ally Bank: The Online-Only Security Challenge
Ally Bank is a pioneer in the online-only banking space. Because Ally has no physical branches, your entire relationship with the bank is digital. This creates a unique security profile: you cannot walk into a branch with an ID to prove who you are. Therefore, your digital "front door" must be reinforced with a level of rigor that exceeds traditional brick-and-mortar banks.
1. Hardening Your Ally Account
Security Access Codes (MFA)
Ally uses "Security Access Codes" as their primary form of MFA. These can be delivered via text, call, or email. The Policy: You should configure Ally to require a code every time you log in, not just when the system doesn't recognize your device. This prevents an attacker who has stolen your password from gaining access even if they are on a "trusted" network. Action: Under "Settings" > "Security," enable the "Require a code at every login" option.
The "Anti-Phishing" Mindset
Because Ally is online-only, they communicate almost exclusively via email and app notifications. Attackers know this and frequently send highly convincing "Ally Security Alert" emails that lead to fake login pages.
The Rule: Never click a link in an email from Ally. If you receive an alert, open your browser, manually type in ally.com, and log in from there. This simple habit neutralizes 99% of phishing attacks.
Managing Linked Accounts
Ally is famous for its high-yield savings accounts, which users often link to many other external banks. The Strategy: Only link the minimum number of external accounts necessary. Every linked account is a potential "bridge" an attacker can use to move money out of Ally if they gain access to your profile.
2. Failsafe Recovery Preparation
Security Questions: The Digital Weak Point
Ally, like many older digital platforms, relies on security questions (e.g., "What was the name of your first pet?"). These are the most common way for attackers to "socially engineer" their way into an account. Expert Tip: Never provide truthful answers. Attackers can find your first pet's name or your high school on Facebook. Instead, use your password manager to generate a random 20-character string for each "answer." This effectively turns the security question into a second, unguessable password.
Verified Contact Information
Because there are no branches, Ally relies entirely on your verified phone and email for recovery. Action: Ensure your Ally recovery email is a "Hardened" account (e.g., a hardware-secured Proton or Gmail account). If an attacker hacks your email, they can take over your Ally account in minutes by resetting the password and intercepting the security codes.
3. The "Account Takeover" Response
If you suspect someone has accessed your Ally account:
- Call Ally Immediately: Their 24/7 customer service is your only "Branch."
- Move Funds: If you still have access, move your funds to a different, unlinked bank account while you work with security.
- Update Security Questions: Change your (randomized) security question answers immediately, as the attacker may have viewed them.
For more information on the underlying principles, see our articles on MFA Fundamentals and Password Security.
Why This Matters
The Importance of MFA
Multi-Factor Authentication (MFA) is your strongest defense against account takeover. Even if a physical or digital attacker obtains your password, MFA provides a critical second layer of defense that is much harder to bypass. Learn more about MFA best practices.
Unique, Strong Passwords
Never reuse passwords across different services. If one service is breached, every other account using that same password becomes vulnerable to "credential stuffing" attacks. Every online service should have its own unique, long, and complex password managed by a reputable password manager. Learn why unique passwords are critical.