Security Threats of Mobile Banking
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 Lomena, Joy Ried, Dec 2000).
Today the new innovation in the banking sector is all about Mobile Banking. With the rapid increase in mobile applications development, as well the increase in use of ‘smart phones’, more and more people are comfortable with viewing their account balance information and transactions history on their mobile phones. According to Celent, 2007, 73% of consumers would want to use their mobile phones to view their bank account details.
As good as Mobile Banking sounds in terms of getting faster and easier access to banking services from any location, the idea of mobile banking also brings along some security issues regarding safe transmission of information. Just like the old saying that goes, “every coin has two sides”, mobile banking also has its disadvantages despite how excellent and convenient the technology might seem to be.
Pros and Cons of Mobile Banking
The most popular mobile banking services provided by major banks include: account alerts and reminders, account balances, updates and history, customer service, information on locations of ATMs or branches of the bank and bill payments; for instance people can now pay their utility bills like water and electricity bills via a mobile phone.
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 Lomena, Joy Ried, Dec 2000).
Today the new innovation in the banking sector is all about Mobile Banking. With the rapid increase in mobile applications development, as well the increase in use of ‘smart phones’, more and more people are comfortable with viewing their account balance information and transactions history on their mobile phones. According to Celent, 2007, 73% of consumers would want to use their mobile phones to view their bank account details.
As good as Mobile Banking sounds in terms of getting faster and easier access to banking services from any location, the idea of mobile banking also brings along some security issues regarding safe transmission of information. Just like the old saying that goes, “every coin has two sides”, mobile banking also has its disadvantages despite how excellent and convenient the technology might seem to be.
Pros and Cons of Mobile Banking
The most popular mobile banking services provided by major banks include: account alerts and reminders, account balances, updates and history, customer service, information on locations of ATMs or branches of the bank and bill payments; for instance people can now pay their utility bills like water and electricity bills via a mobile phone.
References: [1] Online Banking (IFT027A), http://www.bccresearch.com/report/IFT027A.html Accessed on 2nd November 2010 [2] Mobile Banking Overview, Mobile Marketing Association, January 2009 [3] Wagner, D. GSM Cloning. Smartcard Developer Association, (1998) Available from: http://www.isaac.cs.berkeley.edu/isaac/gsm.html Accessed on 2nd November 2010 [4] Mobile Banking trends 2009, http://www.docstoc.com/docs/14611522/Mobile-Banking-trends-2009 [5] Security of Mobile Banking, Kelvin Chikomo, 2006