Is it safe to perform online banking transaction with iPad2?

Someone intercepting the WiFi signal and obtaining logins and passwords would be possible only if the bank is not using SSL (and even with a non-encrypted data stream it would not be easy by any means) or implementing such security in their app. I've never seen a bank that doesn't run a secure site, but I suppose there could be a bank that foolish. If the site URL starts with HTTPS, then it uses SSL and the chances of someone being able to decrypt the data and extract login information is almost vanishingly small. As you imply, anyone with that sort of talent, time and criminal tendencies will be going after a much larger payoff.

A WiFi password does not prevent signal interception, by the way. Passwording the WiFi router prevents someone from being able to use the router for their own connection, or from hacking the router. Signal interception is still possible.

Regards.

Gary,

Beyond what Dave suggested, (call it paranoia, but) I frequently clear browsing history, cookies and caches from the setting menu for Safari, that is assuming you are banking online via Safari and not via the Bank's App. In the latter case, you should check if there are any settings for the Bank App that allow you to clear it's caches.

One other thing I do to close the Apps, by double clicking the home button, getting a list of running apps at the bottom of the screen, selecting the app I want to close by pressing it for more than 2 seconds and click on the small 'x'.

This may all change with the release of iOS 5 (tomorrow).

Good luck and browse safe....

Yes, it's safe, unless your bank is extermely foolish in how they set up their web site (or app, if they provide a dedicated app) or have a security breach in their servers. There's almost no way someone could sneak any sort of spyware onto your iPad unless you've jailbroken it. You should, of course, set a passcode on your iPad with the option to do an automatic wipe after ten invalid passcode attempt (activating the long passcode option is even more secure). You should also set up Find My iPad, though if you don't already have a MobileMe account you'll have to wait until Apple rolls out iCloud and begins allowing account setups.

Regards.

Dave is right but also make sure your WI-FI connection is secure with a password. If a sophisticated user hacks your signal they could possibly swipe your logons and passwords. Although if they have that ability and talent they are most likely not going after people like me or you but instead someone like CitiBank.

An additional security improvement.

Be sure you setup you Wifi router to use WPA2 encryption with a 'real' password.

Data security risks

The most common wireless encryption-standard, Wired Equivalent Privacy (WEP), has been shown to be easily breakable even when correctly configured. Wi-Fi Protected Access (WPA and WPA2) encryption, which became available in devices in 2003, aimed to solve this problem. Wi-Fi access points typically default to an encryption-free (open) mode.

http://en.wikipedia.org/wiki/Wi-Fi