The advent of mobile devices changed the way how we use technology today. A recent study shows that mobile devices will soon replace desktops and laptops. Mobile devices have become an everyday tool for people in all walks of life — businessmen, students, children, parents and even the older generations. It was inevitable that businesses will soon enter the mobile platform and start reaching out to their customer base through mobile devices.
Financial institutions are one of the businesses that first used mobile devices to reach out to their customers, keep customer satisfaction rates at acceptable levels and remain competitive. Banks realised the real value of mobile banking: it gave them the benefits of reaching through geographically remote customers, getting new market, improving new strategies, updating banking transactions and increasing efficiency. These are just some of the avenues mobile banking has brought to financial institutions.
Because progress has become clear in the mobile industry, questions about security arise regarding mobile banking. Is mobile banking safe to use? How can we use mobile banking securely?
With all these benefits of mobile banking are risks that financial institutions must face and address. These risks are from all sorts of forms including malware, poor application design, unsecure Wi-Fi networks and many more.
Mobile Malware and Poor App Design
Mobile devices have seen drastic changes from being telephones to pocket-sized computers. Users must acknowledge this progress and must understand that like computers, these devices are vulnerable to malwares such as viruses and Trojans.
The app market is flooded with useful mobile applications; one of which is the creation of mobile banking apps. App developers need to understand the risk of exposing confidential customer information once they leave certain parts of the apps to be easily attacked by tech-savvy crooks.
Unsecure Wi-Fi Networks and Mobile ID Vulnerabilities
Free Wi-Fi is available almost everywhere — coffee shops, restaurants and public places in general. These gave us instant access to connectivity; however, the risks that you are exposed when you are in these public networks can just be very overwhelming. Public Wi-Fi hotspots are the most unsafe places to access mobile banking apps or any apps that have your sensitive information. These are the favourite places of hackers and cybercriminals.
Banks invest a lot in software and app development to store and gather customer information in one database. This can include user credentials — username and password, device id and even customer fingerprints. Having access on these information is just what every fraudster wants, and they will apply their ways to make sure they get their hands to it.
Mobile banking security can be frightening; however, there are ways on how to combat these security issues. Organisations must align their IT security services in Australia teams with their app developer teams; this way, they can come up with a safe mobile banking application. They must also employ mobile malware detection and other IT solutions in Australia to be able to prevent data threats and attacks.