2. INTRODUCTION
Mobile banking refers to the use of a smartphone or other cellular device to
perform online banking tasks while away from your home computer, such as
monitoring account balances, transferring funds between accounts, bill
payment and locating an atm.
For consumers, mobile banking is a terrific way to efficiently manage the
occasional administrative task on the go. For small and mid-size business
owners, mobile banking gives the precious gift of time. Closing a sale, meeting
new customers or smoothing back office shipping glitches are important
Revenue producers. Waiting in line at the bank to deposit a wad of checks is
not.
3. TOP 5 COUNTRIES THAT USE MOBILE BANKING:
Mexico
Brazil
Us (united states)
Uk (united kingdom)
Singapore
4. Have a look at these interesting statistics on
the demand for mobile banking across the
world…
5. ADVANTAGES OF MOBILE BANKING:
1. Be available when and where your customers want you to be:
Mobile banking does not restrict your business to set times/locations. Be
available 24/7 – anytime, anywhere!
2. Empower your customers:
Your users will be able to transfer funds, invest or exchange currency without
interruptions/suggestions from anyone, waiting time and quick turnaround on
requests
6. 3. Go green, go paperless
4. Have A Single View Of Customers
5. Provide Super-fast Services To Customers
6. Facilitate Location-based Services
7. Reward Your Customers
8. Safeguard Customer Details
7. The Major Mobile Banking Risks
With all this opportunity comes risk. Financial institutions must assume the
risk associated with mobile banking. These risks come in many forms,
including malware, corrupt apps, flawed authentication, lost or stolen devices
and more.
Mobile Malware
Mobile devices have evolved from telephones to pocket-sized computers.
Mobile users must recognize this and protect them in the same way they
would their PC. Malware specifically targeting mobile devices has become a
very real and prominent threat. Mobile malware can consist of viruses,
trojans, spyware, malvertising and rootkits.
8. Poor App Design, Configuration or Corrupt Apps
• Using mobile apps for banking tends to be safer than logging in via your mobile
browser. However, every mobile platform has unique characteristics that these
apps must prepare for. Developers may not fully understand the risks associated
with mobile banking and accidentally leave vulnerabilities open for fraudsters to
exploit as a result.
• Third-party apps open users up to a multitude of risks since these programs may
leverage credentials from other applications — even if these apps have weaker
security in place. For example, a shopping app could leverage your banking login
information (username and password) to access your bank’s services to facilitate
a transaction.
9. Unsecure Wi-Fi Networks
• Free Wi-Fi is a coveted luxury for mobile device users. It can be found in
restaurants, coffee shops, airports and many other public places. But when
accessing free Wi-Fi, it is important to understand that the activity you are
conducting may be visible to someone else.
• Hotspots may be spoofed by fraudsters. For example, your local coffee shop’s
network may be called Free Coffee. A fraudster my set up Wi-Fi at or near that
location called Free Coffee is one to trick you into using that network.
10. Mobile Device ID Vulnerabilities
Many financial institutions work to gather the device fingerprint for each
mobile unit the customer uses. This involves collecting information about the
device, which is then stored in a system to identify the true customer from a
potential fraudster. However, fraudsters are a dynamic bunch of bad actors
and have developed ways of fooling device fingerprinting methods.
Remote Deposit Capture Fraud
Remote deposit capture allows for users to snap a picture on their mobile
device and deposit a check. While financial institutions have put rigid
customer agreements and monitoring of this technology in place,
fraudsters have found flaws in the system. For example, they have found
ways to access the remote-deposit database, copied the images of
thousands of checks and provided those reproduced checks to money
mules to be moved out of the financial system.
.
11. CONCLUSION
Organizations must adopt mobile malware detection and
technology solutions. Having the right tools in place to stop
threats is key to safeguarding consumers and financial
institutions alike.
New technology has the ability to increase productivity and
profits. With these benefits come risks — and it is important
to get in front of them before they strike!