Secure Banking: VM vs USB Ubuntu

TL;DR

For maximum banking security on Linux, a dedicated virtual machine (VM) is generally better than a full Ubuntu install on a USB drive. VMs offer isolation and easy rollback in case of compromise. However, a USB drive can be useful if you need to use the system on different computers without leaving traces.

1. Understanding the Risks

Online banking carries risks: malware, keyloggers, phishing. We want to minimise these when using Linux.

• Malware: Viruses and other malicious software can steal your login details.
• Keyloggers: Record everything you type, including passwords.
• Phishing: Fake websites tricking you into entering your credentials.

Both VMs and USB Ubuntu aim to reduce these risks by providing a separate environment for banking.

2. Virtual Machine (VM) Approach

A VM creates a self-contained operating system within your existing Linux setup. It’s like having a computer inside your computer.

2.1 Why VMs are More Secure

• Isolation: If the VM gets infected, it doesn’t affect your main system.
• Snapshots: You can take ‘snapshots’ – backups of the VM at a clean state. If something goes wrong, you revert to the snapshot.
• Dedicated Environment: Use this VM *only* for banking tasks. No browsing other websites or opening suspicious files.

2.2 Setting up a VM (using VirtualBox as an example)

1. Install VirtualBox: Open your terminal and run:

   sudo apt update && sudo apt install virtualbox

2. Download Ubuntu ISO: Get the latest Ubuntu Desktop image from the official website.
3. Create a New VM: In VirtualBox, click ‘New’. Give it a name (e.g., “BankingVM”). Select Linux as the type and Ubuntu as the version. Allocate at least 2GB of RAM and 20GB of disk space.
4. Install Ubuntu in the VM: Start the VM and select the downloaded ISO file as the boot device. Follow the on-screen instructions to install Ubuntu.
5. Install a Virtual Keyboard: This is crucial! Install Onboard:

   sudo apt install onboard

6. Configure Networking: Use ‘Bridged Adapter’ networking mode if you want direct access to the internet (more convenient). Otherwise, use ‘NAT’. Be aware of security implications.

3. USB Ubuntu Approach

Installing Ubuntu directly onto a USB drive creates a portable operating system.

3.1 Why Use USB Ubuntu?

• Portability: Use it on any computer without leaving traces (if configured correctly).
• No Host System Impact: Doesn’t rely on your existing OS.

3.2 Setting up USB Ubuntu

1. Download Ubuntu ISO: As before, get the latest Desktop image from the official website.
2. Create a Bootable USB Drive: Use Rufus (Windows), Etcher (cross-platform) or Startup Disk Creator (Ubuntu). Select the ISO file and your USB drive.
3. Boot from USB: Restart your computer and boot from the USB drive (you may need to change BIOS settings – usually by pressing Del, F2, F12 during startup).
4. Install a Virtual Keyboard: Install Onboard:

   sudo apt install onboard

4. Security Hardening (Both Methods)

• Firewall: Enable the Ubuntu firewall:

  sudo ufw enable

• Automatic Updates: Ensure automatic security updates are enabled.

  sudo apt update && sudo apt upgrade -y

• Strong Passwords: Use strong, unique passwords for all accounts.
• Two-Factor Authentication (2FA): Enable 2FA wherever possible on your banking accounts.
• Virtual Keyboard Usage: *Always* use the virtual keyboard when entering sensitive information like passwords and PINs. This prevents keyloggers from capturing your keystrokes.

5. Which is Best?

For most users, a VM is the recommended approach due to its superior isolation capabilities and snapshot functionality. A USB drive is best if you need portability and can’t rely on a host system.