Report highlights mobile banking risk
Aite study investigates security vulnerability in mobile banking
BOSTON – An impact study carried out by Aite Group, an independent research and consultancy firm, says financial services firms face a range of new risks associated with the rising popularity of mobile phone banking.
The number of US mobile banking users is expected to reach 1.6 million by 2008, soaring to 35 million users by 2010, says the report, entitled ‘Mobile Banking Security: The Black Cloud Attached to the Silver Lining’.
Wireless networks can now provide broadband speeds to handsets that have the computing power equivalent to the personal computers of just a decade ago.
However, the associated risks are evolving just as rapidly. Trojan viruses and other security threats once had to spread individually through file transfers, which could be monitored and contained (through Bluetooth, for example), but this is no longer the case.
“The level of ability to attack a mobile device has increased,” says Nigel Jones, director of UK consultancy Technology Risk.
It is feared the same data security and personal privacy breaches afflicting online banking today could jeopardise mobile banking uptake, as the problems that have plagued customers online will inevitably migrate to the mobile market.
Lack of consumer education on potential threats, combined with the proliferation of millions of transaction-enabled handsets across a global market, will make large-scale criminal attacks over mobile networks almost inevitable.
Nick Holland, the author of the study, says: “Banks must not shun offering mobile transaction services. The end user will become savvy with time, and the channel will eventually develop mechanisms to further aid the customer. The key is for banks to get started sooner rather than later, to accelerate the learning curve and lessen exposure to mobile fraud when it does occur.”
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact info@risk.net to find out more.
You are currently unable to copy this content. Please contact info@risk.net to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@risk.net
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@risk.net
More on Regulation
Will Iosco’s guidance solve pre-hedging puzzle?
Buy-siders doubt consent requirement will remove long-standing concerns
Responsible AI is about payoffs as much as principles
How one firm cut loan processing times and improved fraud detection without compromising on governance
Could one-off loan losses at US regional banks become systemic?
Investors bet Zions, Western Alliance are isolated problems, but credit risk managers are nervous
SEC poised to approve expansion of CME-FICC cross-margining
Agency’s new division heads moving swiftly on applications related to US Treasury clearing
ECB bank supervisors want top-down stress test that bites
Proposal would simplify capital structure with something similar to US stress capital buffer
Clearing houses warn Esma margin rules will stifle innovation
Changes in model confidence levels could still trip supervisory threshold even after relaxation in final RTS
BlackRock, Citadel Securities, Nasdaq mull tokenised equities’ impact on regulations
An SEC panel recently debated the ramifications of a future with tokenised equities
CCPs trade blows over EU’s new open access push
Cboe Clear wants more interoperability; Euronext says ‘not with us’