Security Threats of Mobile Banking

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Security Threats of Mobile Banking

Student ID: TP023353
Introduction

The evolution of technology over the past few years has been part of a phenomenal experience in our everyday lives. Today, more and more people rely on getting things done faster and quicker, with the help of technology. Take banking for instance, the traditional way was having to go to the bank for even the smallest transactions like sending money, checking your balance and so on. Then came the era of Automatic Teller Machines (ATMs), which can be used to carry out simple banking transactions. From then on, Internet banking was introduced in the early 1980s, and by the year 2000, around 13.7% of households had signed up for online banking accounts, just in America (Ann
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Users can think they are communicating with the bank officials, while in reality they may be broadcasting their personal information to wrong parties. Hackers can take advantage of such confidential information and succeed in their fraudulent actions such as making unauthorized transactions in their favor.

Third party mobile applications can also play a role in collecting confidential information for wrong intended purposes. In order to carry out some banking transactions, users may be advised to download particular applications, but as far as internet fraud goes, the user may accidentally download a third party application, thinking that the software is controlled by the bank. This can be dangerous as the financial information regarding the user’s bank account will be compromised and in the hands of deceitful people.

Security flaws in the Mobile Banking Applications could also result as a threat to the user. Most of these banking applications make use of Global System for Mobile Communications (GSM) technologies and General Packet Radio Service (GPRS) technologies (Prof. T.A. Gonsalves, March 2008). Based on my past experience in the IT field, I can imply that the security of a banking transaction being carried out on a mobile phone depends on the security of data transfer through the various modes of communication, in this case being GSM and GPRS.

Are Mobile Banking Technologies Secured?

GSM provides a
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