The Impact Of Technology On The Banking Industry

Reliability: Jun and CAI (2009) identified one of the very important service quality dimensions of E-banking service quality is reliability. The online banking environment has grown tremendously over the past several years and will continue to grow as financial institutions continue to strive to allow customers to complete money transfers, pay bills, and access critical information online. During this same time, online banking has been plagued by Internet criminals and fraudsters attempting to steal customer information. Phishing, pharming, and other types of attacks have become well known and are widely used as a means for fraudsters to obtain information from customers and access online banking accounts. As a result, authenticating customers logging onto their online banking service has become a crucial concern of financial institutions (Gregory D. Williamson, 2006)

To start off with I chose to go with our banking or financial industry. The banking industry is constantly getting attacked by various methods on a daily basis. I chose this industry because I happen to know someone who works in the security sector at Wells Fargo Bank, he was a good person to get information on what he sees on a daily or weekly basis. This paper is the opinion of myself and with gathered information from various resources.

Though technology have been a major contribution in the security of people’s money, it has also been used as a tool for internet hacking and identity theft. Since the invention of computers and the internet, it has been common today for people to constantly upgrade their security systems. With major bank companies, it has been made easier to make payments with the slide of a card. However, because of technology, it has also been made easier for hackers to rob people of their money and personal information. As of recent years, there have been a major increase of online shopping as it is extremely convenient for a lot of people. And as convenient online shipping may be, it is also one of the causes for stealing credit card information. People are able to make fake websites and steal a person’s credit card info. And with advanced computers it is not required to repeatedly input a credit card’s number as it can be automatically saved, but the drawback of this

The change and advancement in technology are a significant factor in the banking business. Technology has led to tremendous improvements in this industry. Since the commencement of this millennium, people have shown great love for their mobile phones (Ozaki 1992). It necessitated the invention of mobile applications (APPs). From the introduction of the mobile banking, APP people rarely go to the banks. All their transactions get done simply by the stroke of a finger. Businesses face a challenge of adapting to changes in the technology sector. Mobile banking either through actual investing or any other means is on the rise.

Bank of America is a multinational banking institute and one of the most trusted in the banking industry. This organizations sole purpose is to protect the customer’s confidentiality and assets by ensuring that data protection is the number one priority; however any organization when holding personal information can be a victim of data breach and BoA is not exempt. One of the largest risks BoA faces today is Mobile Banking. This consumer convenience is used by fifty percent of smart phone owners (Finney, 2014). Phishing is also threat to the banking industry; this strategy by hackers allows the extraction of consumer passwords and other sensitive information. Hackers targeting banking institution employees with convincing e-mails that fool them into clicking on malicious links-which ultimately compromise their credentials or

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 on 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

The Australian Law cannot cope with the rapid rise of cyber crime, cyber attacks are increasing, identify theft is becoming more common and phishing is becoming a more popular way of accessing bank details.

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

Cyber-Security risk will only increase in importance and require ever greater resources. As a Financial institution we store an increasing amount of data about their customers, the exposure to cyber-attacks is likely to further grow so we have to make protection against cyber-attacks one of our top strategic priority (The future of Bank Risk Management, 2016).

Being touted as the 'new era of cyber crime', advanced phishing attacks recently were responsible for stealing as much as $1 billion from over 100 banks worldwide. [1] In an attack that took place in the shadows of the networks of their victims over more than 2 years, this display of how dangerous these phishing techniques are becomes very apparent. In previous years, it was always thought that the easiest way for a hacker to steal would be for them to go after the customers directly. However, as became apparent in this attack, hackers have become much more resourceful at how they get access to the banking information they desire.

The United States banking industry has been a problem ever since the fraud and corruption from the market crash of ’08. There have been two sides arguing what we should do to these banks. Many people say, “We need to split up the big banks into smaller banks.” Their argument is that the smaller banks will be easier to monitor to make sure no fraud is going on and it will cause there to be more competition in the industry which will lower interest rates. The other side of the argument where many people also stayed is that the big banks don’t need to be split up. They just need a bailout to get back on their feet and they can sort this mess out. The arguments stand on two principles one side says the banks are corrupt and need to be disbanded, and the other side’s states that the banks are too big to fail; come ground is difficult for these two but they both want to fix the economy.

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.

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

For an extended period extending towards the end of 2014 until now, incidences of cyber security attacks on financial institutions have not only grown in number but also become sophisticated (Global banking and payment systems Practice, 2015). Lately, the criminals try to match the new security control measures with advanced security breach mechanisms and software. These criminals are known to introduce hybrid systems or devices like the variant DDOS (Distributed Denial of Service), which renders a system useless for some period. Others have referred to traditional means such as spoofing, which makes an organization 's email address vulnerable by creating traffic on it after that the hacker retrieves some vital information (Serb e al, 2014). But even with that, it leaves many to think of the necessary measures to put in place, to avert this global paradox. Consequently, for the many incidences reported and the enormous sums of money looted, not to mention the data breaches, there remains one question that never seems to escape the minds of the stakeholders and victims of these gangs’ internet attacks. The question revolves around the reason as to why these incidences seem to be on the rise and not very many culprits are being reprimanded for their heinous acts. In other words, are there real causes of these issues or it is a matter of inside jobs as many testimonies have revealed after the culprits are snubbed in the act of trying to loot from financial institutions.

One of the most vulnerable places for robberies are banks, and mainly commercial banks. Banks are prone to robberies because not only they offer huge amount of money accumulation at a single point at a single time, but also their public accessibility makes penetration easy for robbers. However, over a period of time, after security systems have been revolutionized, even bank robbers