When Internet banking was launched by some private banks few years back i.e. around 2005, customers were apprehensive of using it. In year 2013, several private banks launched their mobile banking apps. At this point also, customers were merely wondering what mobile banking was and whether these kinds of applications were safe to use.
However, over the years, these applications have made our lives easy and banking customers have become quite comfortable with new technologies. They are using internet banking for balance inquiries as well as other things like funds transfer, credit card payment, utility bills payment and even equity trading. The Complex encryption software makes sure to protect your valuable information. However, every system has its flaw. Your account is at the risk of being attacked by hackers, phishing, malware and illegal activities.
Before you open your Android/iPhone stores and start downloading them, let’s take a look at their risk factors and find out whether these apps are as foolproof as they claim.
Major Risk factors
Illegal or pirated applications and contents
At times everyone downloads applications from unauthorized or illegitimate web sites. Some of these applications can inflict malicious content. This poses major risks. So, you need to be aware of problems caused due to illegal software.
Other Application configurations
All of us have several applications installed in our mobile. While downloading the apps on your mobile, as you click ‘Accept’ option, remember that you may end up allowing someone else access your mobile banking details in the app. So, you should carefully check what kinds of permissions are being asked when applications are being installed.
Using Wi-Fi
If you are using free Wi-Fi available at public places, you might unknowingly accept a malware application which in turn will access information in your mobile banking application.
Unlocked Phone
Phone with no pattern or password lock is ideal for hacking if you leave your phone unattended or lose the phone. Hackers can easily access your banking details with no or least hacking knowledge. So, you should ensure your phone has a proper locking system if you are planning to use mobile banking apps via your phone.
Mobile OS
Did you know that if you have not updated your mobile with latest updates, they are quite vulnerable to hacking? Invariably the new versions include some kind of security patches.
Fake applications
It is said that there are over 700,000 mobile applications on app stores. Several of them are fake applications. Quite similar to phishing campaign, these applications on are waiting for users to hand over their banking details. So, always look for genuine application which can be downloaded from l bank’s official web-site.
How the mobile banking vulnerability can be minimized?
There are few things you can do to reduce security threat to mobile banking. Some of them are listed below.
- Always enroll for SMS alerts so you immediately receive messages for any fraudulent transactions.
- Make certain you install latest operating system patches so any security threats are mitigated.
- Keep complex and unusual password or unlocking pattern on your mobile which can’t be cracked easily.
- If possible, install antivirus software on your mobile.
- Try to use personal and trusted internet connection and avoid using public or free Wi-Fi while dealing with banking applications.
- Download app only from your official banking web-site.
Mobile banking (& now even Smart Watch banking) is definitely a progressive move in the right direction but it must be applied with adequate caution to avoid getting played by corrupt elements of the internet. I hope that if you keep these things in mind, you will be able to enjoy the hassle-free banking at your convenience from the comforts of your home and office.