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.
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.