The document examines the safety of mobile banking apps, highlighting significant risks such as mobile malware, poor app design, unsecured Wi-Fi networks, and remote deposit capture fraud. It also outlines measures to enhance security, including multi-factor authentication, end-to-end encryption, device fingerprinting, and real-time alerts. Ultimately, while mobile banking offers convenience, users and organizations must adhere to best cybersecurity practices to mitigate risks.

1. Are Mobile Banking
Apps Safe?
Introduction
Mobile phones are a quintessential part of our lives; they keep us connected with friends and
family and make our lives more convenient every day. As the global Covid-19 pandemic
encouraged people to remain safely indoors, there was a large increase in the number of Mobile
Banking users. From depositing checks remotely to having 24*7 access to your bank account, the
convenience and the utility of Mobile Banking are the reasons behind this popularity. And yet
many people still wonder if Mobile Banking is Safe. If you are someone who is undecided about
adopting Mobile Banking because of concerns about the security of Mobile Banking then here is
the answer to your question ‘Are Mobile Banking Apps really safe?’ covered in this article. The
best way to do this is to look at the risks involved with Mobile Banking and what organizations
and customers can do about it.

2. Risks of Mobile Banking
1. Mobile Malware
In this report by McAfee, the antivirus software company, it was observed that mobile malware
grows in its scope and complexity with each passing year. Malware specifically targeting mobile
devices is a prominent threat to Mobile Banking as a whole. Mobile malware can consist of viruses,
Trojans, spyware, malvertising, and rootkits, making it difficult to pinpoint the actual cause and come
up with a defense therefore making it easy to hack a person’s phone.
2. Poor App Design, Configuration, or Corrupt Apps
Mobile Banking apps which have been developed by reputed banks with the help of top-notch Cyber
Security experts can be safer than logging in through your browser. Similarly, unofficial apps or third-
party apps expose users to a multitude of risks. These apps could leverage credentials from other
applications without the same amount of Cyber Security infrastructure and exploit your private data.
For example, a shopping app could access and use your banking login information to facilitate a
transaction.
3. Unsecure Wi-Fi Networks
As the world becomes ever more digital, public places are beginning to provide free Wi-Fi as a
service. While this might seem useful, it is important to understand that when you connect to an
unknown Wi-Fi network, someone else on the network can have access to your activity. Hotspots
can easily be spoofed by fraudsters, by setting up fake hotspots in your local coffee shop or public
place. Using free public hotspots, opens users up to packet sniffers who are phishing for your
banking details and personal information, such as your name, address, or phone number. This is
why it is important to validate the security of your Wi-Fi network before connecting.
4. Mobile Device ID Vulnerabilities
Fingerprint scanning was believed to be one of the most secure forms of authentication. However,
scammers have now innovated new and innovative systems to collect information on the same.
5. Remote Deposit Capture Fraud
Remote deposit capture is a new technology that gives users the ability to snap a picture on their
mobile device to deposit a check. The ability to deposit funds remotely through Mobile Banking is a
convenient and valuable feature for most users. Financial institutions implemented rigid customer
agreements and monitoring of this technology in place, and yet scammers have already discovered
flaws in the system.

3. How to improve the security of Mobile Banking Apps
Mobile app development and security processes are a complex multi-layered task. While it might be
impossible to get rid of all threats, it is easy to minimize them by adopting best practices that may
help improve the security of Mobile Banking Apps. Some of these ways are listed below:
1. Multi-Factor Authentication
Submission of a single password before granting access to a customer’s bank account is a defence
system that can be beaten easily. By adding a Multi-Factor Authentication feature – such as
generated one-time passwords or fingerprints – you add an additional layer of defense which
cannot easily be deceived. Multi-factor Authentication requires the user to provide two or more
verification factors to gain access to a resource such as an application or online account.
Professional Cyber Security firms will always promote the use of Multi-Factor Authentication.
2. End-to-end encryption
Sensitive data worth billions of dollars is shared over the internet regularly. This makes it a
prime target for hackers. End-to-End encryption is the safe and secure solution to this
massive threat which ensures that sensitive data remains safe and sound. End-to-end
encryption is the act of applying encryption to messages on one device such that only the
receiving device can
Decrypt it. The message travels all the way from the sender to the recipient in encrypted form.
This ensures that confidential data remains confidential.
3. Fingerprinting devices
Fingerprinting devices add an extra layer of security to Mobile Banking apps. These devices obtain
various sets of signals such as IP address, location, time of the day, device type, location, screen
size, browser etc. Coupled with the physical fingerprint input in your mobile phone, your device
can estimate whether you are accessing the device yourself or whether it is being accessed by a
hacker.

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4. Real-time text and Email alerts
If the customer uses Mobile Banking apps then it is safe to assume that their smartphone also has
access to email and text messaging services which they regularly use. In case of a suspected
breach an organization can send a real-time email or a text alert to the user to notify them of
activity on their account. This type of notification makes it easy for users to keep track of their
own money usage and also be immediately notified if the account is being used by an unknown
entity. This feature allows you to immediately alert your bank if there is any suspicious activity
and stop such an attempt in its tracks.
Bottom Line
According to Cyber Security experts Mobile Banking can be both safe and convenient as long as
customers take all the necessary precautions. As the article elaborates, there are many
advantages to Mobile Banking, such as ease of use, convenience, 24*7 access and others. Yet,
there can also be certain risks inherent to the process. Any technological advance can be seen as a
double edged sword. We have discussed the risks and the measures that can be taken to solve
them above. It is up the organizations and the customers to follow these practices. Following
good Cyber Security practices as per established frameworks is the best way to make sure that
your mobile banking apps are as safe as possible.
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