Major Mobile Banking Security Risks
Mobile device usage is at an all-time high, mobile digital media is now outpacing desktop usage, and it’s going to continue to rise. Everywhere you go there is a student, parent, child, businessperson, etc. looking at their mobile device. If any business in the world wants to continue the fact that it needs to be mobile-friendly is abundantly clear.
Community banks also recognize the value of mobile banking, as it provides them avenues and opportunities to reach remote or rural markets, focus on new markets, and innovate and overcome infrastructure limitations and improve efficiency, to access payment systems. With opportunity comes risk and financial institutions must assume the risk associated with mobile banking.
Most peoples’ mobile phones are no longer just a phone, they are pocket computers and should be treated as such. Malware specifically targeting mobile devices is a prominent threat and protecting your information from viruses, Trojans, spyware, malvertising, and rootkits is not easy if your favorite sites aren’t secure.
Poor App Design or Configuration
Your bank’s mobile app was designed with security in mind, so it will be much safer than logging in through your browser. However, every mobile platform has unique characteristics that these apps must adapt to. Developers must fully understand the risks of mobile banking and leave no vulnerabilities open for exploitation.
Third-party apps leave users vulnerable to risks because they leverage credentials from other unsecured apps. For example, buying something through a shopping app will leverage your banking username and password to access your bank’s services to expedite a transaction.
Free wifi is no longer a luxury for mobile device users as most places provide it and data is much cheaper than in the past. Still, many of us have our phone set to automatically connect to the wifi in restaurants, coffee shops, airports, etc. but fraudsters can easily trick people into using their “fake” wifi hotspot by using a close name to the real network.