Mobile banking facility is provided by a bank or other financial institution to allow its customers to conduct a financial transaction remotely with a mobile device like a mobile phone or tablet. Mobile banking facility differs from mobile payments, which involves the use of a mobile device to pay for goods or services at the point of sale or remotely. The earliest mobile banking facility services used SMS banking. With the introduction of smart phones with WAP support enabling the use of the mobile web in 1999, the European banks started offering mobile banking to their customers.
Mobile banking refers to providing banking and financial services with the help of a mobile device. The scope of services may include facilities for banking and stock market transactions, to administer accounts and to access customized information.
Typical mobile banking services may include
- Account information
- Mutual funds / equity statements
- Funds transfers between the customer’s linked accounts
- Paying third parties, including bill payments and third party transfers+
Cheque Book Requests
As with most other internet-connected devices, cyber crime rates in mobile banking facility are escalating year-on-year. The types of cyber crimes in mobile banking facility range from unauthorized use to hacking, jamming or interference via the internet. The security of financial transactions is the most complicated challenge to be addressed by mobile application developers, service providers and the banks’ IT departments.
One-time password (OTPs) are the latest tool used by service providers in the fight against cyber fraud. OTPs are requested by consumers each time they want to perform transactions using the mobile banking interface. Upon request, the password is sent to the consumer’s phone via SMS. The password expires once it has been used or once its scheduled life-cycle has expired.
With mobile banking facility, the customer may be sitting in any part of the world (true anytime, anywhere banking) and hence the banks need to ensure that the systems are up and running in a true 24 x 7 fashion. The banks unable to meet the performance and reliability expectations may lose customer confidence. Recently in India, there has been a phenomenal growth in Mobile Banking applications, with leading banks adopting Mobile Transaction Platform and the RBI publishing guidelines for mobile banking facility.
Many consumers do not want to use mobile banking facility for several reasons. These can include the learning associated with new technology, fears about possible security compromises, simply not wanting to use technology, etc.
Let’s have a look at the things which pose a threat to mobile banking facility.
If you are using an older of OS, it could be risky. You will have to keep your mobile OS updated and connected via the Wi-Fi network, so that if there is any patch file which needs to be downloaded on your mobile, would be downloaded instantly due to which your mobile could be secure. Here, the banks use tools such as Dexguard and Ensure IT for encrypting files, which make difficult for hackers to decode the apps security.
Setting The Password
Setting your password is another way of securing the access to your account. You should always use a combination of random numbers, letters or words, phrases and names. These are the things which the cracking programmes check for. One way would be to remember a familiar sentence and use the first letter of each word to form the password. You should try to use the sentence with numbers used in between.
Open Browser Page
Never keep your browser open even though you have closed the application because the browser can always save the pages you had viewed on the computer or your mobile. Always remember to clear the cache after visiting your net banking account. Thereafter, no one else would be able to peep into the account. Also don’t select the option of saving the password on the browser when you are accessing your bank account.
Mobile vulnerability has focused on spam in recent days. Spam messages are quite common like winning a lottery, free cruise passes and so on. In case if you click on them, you could be into the trap of a spam, which could become the advantage point for a hacker to directly access your account details. Never try to click on the “free” advertisements flashing on your mobile screens while doing mobile banking.