Magazine article American Banker

VIEWPOINT: Mobile's Fraud Problems

Magazine article American Banker

VIEWPOINT: Mobile's Fraud Problems

Article excerpt

Byline: Ori Eisen

With every new banking technology comes new security implications and threats.

Consumers are increasingly coming around to the idea of mobile banking, especially with the enhanced number of services being offered via handsets, including financial information services, funds transfer, bill payment and presentation, account management and customer service. At the same time, banks are faced with enhancing their security measures to help address a serious consumer concern - how safe is it to use mobile banking?

Though some argue that mobile banking can be more secure than its Internet equivalent since no data is typically held on the phone itself, security experts and consumers are expressing concerns. Skeptics have good reason to be apprehensive.

The transactions between a mobile device and an institution simply aren't as wellguarded as their Internet counterparts, with only basic identification and verification checkpoints in place.

Authenticating a user's identity in mobile banking is as critical as it is with fixed-line Internet. Yet in reality, most mobile banking systems are struggling with this essential task. While most mobile banking systems have a "sentry at the gate" mechanism that catches some fraud, it isn't enough. They aren't able to ascertain whether the device transacting on its mobile site is in fact a mobile device or a PC or laptop acting as one. In one recent incident, networks of high-level gangsters were trading not just bank account details and card security codes, but mobile phone numbers, as well as e-mail addresses, PIN numbers, passwords and dates of birth of unsuspecting members of the public.

Mobile banking touch points are easier for criminals to gain access to, as they don't have the security layers that Internet sites do. Because fraudsters are able to mimic the appearance of a mobile device as easily as they can a PC or a laptop, they are capable of infiltrating an unsuspecting bystander's mobile banking account. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.