Annotated Bibliography On Online Banking Deception

Internet banking refers to an online facility which provides an alternative channel for delivering banking or financial services and enables individuals to access their accounts anytime and anywhere through a bank’s web site (Z. Liao, Z., and M. T. Cheung, 2012). In other words, online banking named as E-banking, internet banking or virtual banking. Generally, the operation of online banking is connect to the core banking system designed by bank and then contrast to branch banking which refer to traditional way of bank customers accessed to banking services. Nowadays, internet banking is one of the most important businesses in electronic business around the world (Ariff et al, 2012). Most of the conventional banks have to operate and provide the online banking service to their customers as needs by

Information security is vital in organizations; more so in this era where terrorism and hacking are the order of the day. The cost of ensuring a reliable information security is high (Gulati, p.2-3). However, cyber-attacks can vary in costs and outweigh the process of security measures in place to protect information (Manske, p.55). The cost of reputation after an attack can be a major blow to the running of an organization. For instance, if an attacker access credit card information the customers may withdraw from the company or refrain from its services. Court cases against the loss of confidential information may spoil the reputation of a company . When the computer systems have been accessed illegally, the systems must be inspected, fixed and re-secured. Hackers publicly expose the hacked information; clients, sellers and investors may avoid associating with the

As their name suggests, they only execute their operations online. Customers can only be in contact with their money over the internet since they do not have any physical branches. Because online-only banks require lower overhead costs, they have the capability to offer more free services and higher interest rates compared to a traditional bank. Online banking provides many customers the convenience of handling their business at any physical location as long as they have access to internet. This is possible because of the variety of services that online banks provide despite limiting interaction to only the internet. Some of their services include applying for loans online, transferring funds and paying bills online. While the convenience of being able to access banking through the internet is worthwhile, there are limits to it. For example, making large deposits to the bank is limited and can only be made through the mail, they don’t service cashier checks for transactions, and withdrawing money from the account is very inconvenient. Luckily, the role of the internet in financial transactions is becoming increasingly prominent so that spending money online is more accessible, but it is important to understand both the benefits as well as restraints of online banking. Nowadays, many large brick-and-mortar banks have caught on and provide some online services in attempts to

Cyber criminals are illegally access into others account. They are illegally accessed more than half of the world’s largest banking website. Nearly one billion losses for every year for banking industry for this criminal attacks.

In this essay I will be writing about Online Banking, its use, how it evolved, impacts and how it benefited the global businesses. In late 1980s, the term online banking became popular. But in 1990s, the financial institutions implemented the online banking services. Initially it took some time to adopt the customers to do monetary transactions through online banking. Afterwards, with increasing use of computers, internet and World Wide Web, banks introduced new form of banking called Online Banking. It is a service from a bank to perform banking transactions through internet. Transactions like paying bills, transferring funds, applications and payments over loans & mortgages, accounting statements viewing, viewing account’s transaction history, looking for products and services provided by banks, getting answers of queries instantly.

Statistics from the Association of Certified Fraud Examiners (ACFE) show that credit card fraud has reached the $1 billion mark and is growing. By the end of 2007, it is expected to reach the $3 billion mark in the US alone ([4] ACFE, 2007, p. 1.104). The availability of shopping over the internet has raised new concerns. Internet shopping continues to grow and there has been a 22 percent increase in spending in 2005 as compared to spending in 2004 ([4] ACFE, 2007, p. 1.104). Total internet spending has reached $143.2 billion in 2005 and surveys have shown that about 90 percent of all internet purchases are paid online with a credit card. Fraud occurs on approximately 5 percent of all internet purchases. What makes the internet so susceptible to fraud is the lack of face-to-face interaction with the fraudster, which allows for more anonymity and makes prevention and detection more difficult. During 2006, there were 207,492 complaints filed online with the Internet Crime Complaint Center - [18] IC3 (2006, p. 3). During 2006, internet auction

The online banking industry is a growing and a continually evolving business. This paper will identify and describes the legal, ethical, and regulatory issues that impact online banking the Websites. Business ethics examines ethical rules and principles within a commercial context involved in e-commerce are faced with the same if not more legal issues as any other business; these issues include, but are not limited to jurisdiction, contract, and legitimacy in the banking.

Furthermore, fraudsters use social engineering to deceive the bank customers and gain access to sensitive online credentials (Schneider, 2013, p. 480). Unfortunately, fraudsters use phishing to hold clients’ customer data through making phone calls or sending emails to determine information on the payment cards. Moreover, the information obtained through phishing enables the fraudsters to obtain access and make withdrawals, thus forging the customers’ identity. For example, backdoor programs, such as Cart32, steal customer data (Schneider, 2013, p.430). Therefore, phishing not only impacts negatively internet banking but also poses threats to the bank payment system.

By the mid 1990’s most of the major banks now offered online Bill Pay to all of its customers for a small monthly fee (6). By this time, online banking has begun to grow rapidly, along with the concerns for customer security. Like with many changing technologies, many customers of online banking become skeptical of how well the technology could protect them. With growing concerns from customers, banks began increasing their security with online accounts (7).

Although, governments and businesses have spent billions of dollars on IT to protect their information, Medias highlights that the number of cyber fraud and cyber attacks by nation states, criminals, and hacktivists is accelerating. ( Ezingeard, McFadzean, & Birchall, 2005)

Issues of cyber security have come to the forefront of global knowledge and focus. Like many technological issues, it has been a problem for a long time and light has recently just spread in this issue. The emergence of people becoming technologically understanding has led to an ever-expanding rate of technology development. With this, businesses have a need to rely on the internet to broaden their reach of the market while still taking measures to ensure that their information and data stay protected from unauthorized access or attacks. There seems to be no clear preventive solution to the problem as technology is always on the rise while the law and implementation of the law tend to fall behind. Many argue that economically safe options will protect businesses better in the long run, while others argue that making more progressive laws will improve the solution. Though cyber security is primarily the focus of technological businesses, businesses across all fields have differing amounts of interest in the subject as well. As is to be expected, the topic affects each field differently, whether it be focusing on the different information held, or simply a different audience targeting it. The economic strategy brings structure while the law is catching up by relying on old modified statutes.

The use, acceptance, adoption and application of internet technology to businesses to boast their performances are not something new. Saffu et al., (2008), states that there has been a significant increase in the use and application of e-commerce in businesses in the past decade. E-commerce has benefits such as reduction in costs, increased business opportunities, reduced lead time and providing more personalized service to the customers (Turban et al., 2008). Internet banking or e-banking is one of the many tools of e-commerce adopted by the banking industry. Tools of information technology such as internet banking have significantly improved the quality of services offered by the banking

Although, electronic banking provides many opportunities for the banks, it is also the case that the current banking services provided through internet are limited due to security concerns, complexity and technological problems (Sathye, 1999 & Mols, 1999). According to Financial Services Authority (FSA) 2010, banks face several risks but notably are; Safety situations around ATMs, abuse of bank cards by fraudsters at ATMs and the danger of giving your card number when buying on line. Security risk is a major source of concern for both customer and the bank. Since E- banking services are offered using network, it is exposed to risk environments hence leading to security breaches. The consequences of security threats are potential financial, legal and reputational implications.

In the last year, approximately $32 billion was lost to various fraudulent activates, and it has increased by 38 percent since 2013. These activates range from minor crimes like Skimming to major ones such as Identity Thief, but they fall under the term Financial Fraud. Financial fraud can be broadly defined as an intentional act of deception involving financial transactions for purpose of personal gain. Fraud is a crime, and is also a civil law violation. Many fraud cases involve complicated financial transactions conducted by 'white collar criminals ' such as business professionals with specialized knowledge and criminal intent. Financial Frauds are dangerous and can cause harm to everyone no matter how prepared you are. They can affect you in great way and leave you with little or money if not stop. There are many form of fraud and they affect many different people, this paper is to inform you in the risk and the different types of frauds there are, and give certain tips on how to avoid them and be safe from them.

Cybercrime has become a fast growing concern for the 21st century as businesses, institutions and individuals grow into an interconnected web of computer networks. Online business transactions, along with the sharing of personal information, are vulnerable to a host of disasters that can reap economic and social havoc. Some sources say that today, cybercrime costs more than $1.0 trillion to society--Global Industry Analysts, Inc. forecasted the world cyber security market to reach $80 billion by 2017 (Gale, 2011).