Financial Risks Of Online Banking

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1 Peter 5:8 (New King James Version), “Be sober, be vigilant; because your adversary the devil walks about like a roaring lion, seeking whom he may devour”: resonates throughout Mrs. Hefner’s being due to recent events of fraudulent withdrawals on her debit card. On August 6, 2015, she became considerably alarmed with her inability to disburse funds for her repast at Fried Green Tomatoes in Montgomery, Alabama since the declining of the transaction. Thus, immediately she telephoned Max Federal Credit Union to query on what episodes emerged to trigger this calamitous and problematic quandary. After devoting two consecutive hours on the phone waiting patiently on an attendant to answer, the credit union representative informed her that there were fraudulent charges in the amount of $300 in less than a week’s time. Nevertheless, the advances in technology are advantageous but detrimental to our financial wellbeing. This paper will examine how technology has changed the methods of theft and compare the disparity that prevails amongst the conventional thief and contemporary.

Recently, Wells Fargo employees, trying to meet onerous sales goals, created as many as 2 million unauthorized savings, checking and credit card accounts creating a huge scandal for the San Francisco-based institution. It has prompted calls for a wide-ranging investigation into the banking industry, where sales goals are common and complaints of unauthorized accounts have been lodged against other banks. I hereby have examined this issue thoroughly and would like to provide an analysis and two solutions that can prevent these types of scandals from occurring again; one is the modification of daily sales target system and the other is the institution of technology to verify customer contacts.

SunTrust plc. is committed to helping their customers to up their online transactions secure and safe. Despite the various security measures, features and procedures implemented by SunTrust to secure their network and server from cyber-attacks as well as to help protect consumers from scammers and unauthorized access to their accounts, yet, they become a victim of the hacktivist group "Izz ad-Din al-Qassam” who insist on waging war on U.S Banks due to an outrage over a movie trailer posted in YouTube which the group believes casts Islam in a negative light (Kitten, 2012). The question now is how can SunTrust and the rest of the U.S financial

It is inevitable that organizations can keep each and every clients account safe and it is up to each individual to do their due diligence to continuously be aware and informed about each account and all the activity associated with it. As technology evolves many organizations encourage individuals to place more sensitive information online through phone applications and on websites that prompt passwords to save or usernames to be associated with first or last names. The risk of these actions only become relevant when it actually occurs to a specific individual due to the encouragement portrayed when reading the precautions on the specific websites. The perceived safety ensures the reader that the sensitive information will remain safe although the past two years portrays many instances to prove the statement false. Fortune explains in an article written back in October that, “At the end of January, as many as 11 million Premera Blue Cross customers were affected by a hack. Anthem announced the following month that almost 80 million current and former customers’ personal information had been breached.” The continuous efforts made by fraudsters enables them to stay ahead of technology in ways that enable them to hack websites and obtain the sensitive information clients provide to

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.

Identity theft is a growing threat in the uk which is increasing at a rapid rate. It is said that it could be one of the leading threats in the coming years. Analysis of fraud trends in 2012 revealed 50% of all frauds identified during the year relate to the impersonation of an innocent victim or the use of completely false identities. Account takeover fraud, where a fraudster gains access to and hijacks

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).

As we have progressed throughout the chapters in this course we have learned more and more about consumer economics. The knowledge it takes to keep consumers safe and up to date is constantly changing to allow consumers to protect themselves from potential problems that they are aware of as well as things that are concealed. During the last few chapters of this course one topic that really stuck out was identity theft. It is very fascinating that people are capable of stealing so much information people they don’t even know. This information that hackers and other intelligent people collect can change the average consumer’s life as well as company’s reliability. During this essay, the topic of identity theft will be covered as a consumer is affected as well as how cybercrimes using the same methods can affect very large companies. This in turn will affect consumers.

Last year, federal prosecutors charged a cyber crime ring with stealing prepaid debit cards data. And using that data to draw unlimited amounts of money from ATM’s ,Loretta Lynch, the U.S. Attorney in Brooklyn, said in a statement. This was a 21st century bank heist that reached across the Internet and stretched around the globe. In the place of guns and masks, this cybercrime organization used laptops and the

I examine the evolution of credit card fraud in regards of the technology or methodology fraudsters used specifically within the e-commerce industry, and discuss various security concerns companies have for establishing online shopping sites. The appearance of credit cards and the growing e-commerce industry in the past decade has provided fraudsters more ways to commit fraud through online activities than ever. Numerous underground activities existed to provide conveniences for fraudsters to buy and sell credit card information at low prices in order to perform fraud in many different ways. With the frequent data breaches in the retailing industry lately, many security concerns in establishing online shopping sites have emerged.

The recent compromise of Target has exposed a more underlying issue of merchant’s inability to monitor and secure the payment systems and the databases that store consumer card information. When it comes to the technology in place that monitors and secure customer information, there are no active monitoring of the systems. There will need to be an overhaul of the current technology in place by these organizations, if they hope to combat fraud and protect consumers from data breaches and merchant compromises. (Heun, D. (2013).

Technological advancement has had a gigantic effect in the banking industry. Over the past few decades, the financial services industry has changed considerably with banking transforming from the pen and paper method to the computers and internet method. The pen and paper method took weeks or even months for the transaction to be eventually completed, and then the dramatic introduction of the computer and internet method which changed that time frame to only a matter of seconds to be completed, which reduced the amount of time and labor needed to complete a transaction significantly. Banking is considered one of the most important economic sectors with it being severely influential and responsive to any little change, whether it is domestic or international. Some extreme changes that were brought about by the development of this new technology turned into a globalized nature for the financial services industry. One stroke of a key on a computer could and would change a person 's life extensively or even have a global impact. The new technologies that were created and introduced changed how the consumers managed their money from that time on. Technology has helped to protect peoples’ hard earned money and make it much more impossible for people to be able to write out bad checks or even holding up a bank. The advancement in technology however, also came with some security risks as most things do, that could affect the money that people trusted with the bank and

Some of the challenges or risks highlighted above, have not spared National Bank of Malawi considering that the adoption and usage of e- banking services is still in the infant stages and most of fraudsters have taken advantage of the