Mobile Banking Security and Why It

Mobile banking is not safe for several reasons: 1) App stores do not thoroughly review apps for security flaws, allowing malicious developers to steal user data. 2) Most users do not install security software on their devices, leaving them vulnerable to attacks. 3) Malware for Android has increased over 400% in the past year. 4) Apps can access data from other apps on a device without restrictions. 5) Many users do not use basic security measures like passcodes, allowing unauthorized access.

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Mobile Banking Security and Why It

Uploaded by

AjayPanicker

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Download as DOCX, PDF, TXT or read online on Scribd

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Mobile banking security and why it’s not safe…

Reason 1: Unmonitored security flaws

The majority of the app stores such as Google Appstore and Android Marketplace do
not review mobile apps on the basis of security features. This makes it quite easy for
notorious developers to design and launch mobile apps that have a capacity to steal
confidential data from user’s device.
Reason 2: Unsecured mobile devices
It is a rare phenomenon that consumers have installed a mobile antivirus on their
phones while speculating a possible hack attack. An average smartphone or tablet user
does not install any security software on their device which means that the security
available is only a fraction of what is there on a laptop or a desktop. This factor makes
smartphones vulnerable to security attacks.
Reason 3: Rising malware for Android
There has been a rise in detected malware for Android platforms by more than 400%
over the past 12 months. This is alarming and further raises security concerns for
android app users.
Reason 4: Inter-app Accessibility
The technology which is in place to keep apps separate on a smartphone or tablet does
not separate them into private sandboxes. This implies that one app can easily read
confidential details stored in the other apps on the same device. Who knows, your
gaming app may be reading your banking app data all the time!
Reason 5: User negligence
The majority of the smartphone and tablet users do not even have the basic passcode
activated on their devices. This security flaw can potentially give anyone a direct
access to consumer bank account through the mobile banking app.
Reason 6: Free Wi-Fi trap
Have you ever paid attention to what lies behind a free hotspot or Wi-Fi network at an
airport or café? You will be amazed to know that such free networks may be baits by
potential hackers to intrude into your mobile’s network. The temptation of users to use
these free networks exposes them to possible hacks.
Reason 7: Improper legal framework
There is no clear legislation so far that identifies various rights of users in case of a
banking fraud through a mobile app. In case a fraud happens, users may have to go
through a long legal battle with their bank’s mobile banking security before they get
appropriate refunds.
The worst part in many cases of fraud or cyber attacks is that neither the banks nor the
consumers are aware of exploitation until it’s too late. We’ve even seen over a billion
dollars strategically stolen from 100 banks over the span of two years. So how has
mobile banking security evolved over the years to deal with these attacks?
Companies like Appknox have special expertise in mobile application security using
an automated plus human approach to help businesses, especially in the Fintech
space to ensure total mobile banking security. It is always a good idea to keep testing
your app periodically to ensure that there are no unplugged loopholes which hackers
could exploit, to literally tear down your business and all its customers.