Improve Mobile Banking Security | Protect Against Banking Fraud
Summary: There has been a surge in the use of mobile banking apps since the Covid-19 Pandemic. It is because these apps are easy to use and fast to manage. Besides, it helps users to manage their money. They can transfer money, check account balances and pay bills online. However, only one-third of the customers use banking apps. They lack the trust to adopt these apps. They often ask this question, 'Are mobile banking apps safe to use?'
Therefore, banking heads must ensure mobile banking security for these apps. It will increase the number of users. So, in this blog, we will walk you through the current concerns in mobile banking. We will also explain the best techniques to keep your mobile banking app secure.
Let us dig deeper for more.
There is no denying the fact that we are now dependent on mobile apps for different purposes. With the rise in banking apps, it has become easier for people to manage their finances. However, cyberattacks have put mobile banking security to question. As a result, people are still dubious about installing banking apps. Thus, now banking service providers must eliminate this challenge.
The only way to protect the banking apps is to bring out strict security measures. Therefore, the developers must ensure to fill the gap that can cause an attack on the system. So, in this article, you will observe the following topics:
- What are the risk factors in banking apps?
- What are the fraud cases in mobile banking apps?
- Mobile app security best practices
- How to help your customers?
What are the Risk Factors in Mobile Banking Apps?
The risk factors in mobile banking apps occur during their development process. They can be defects in the architecture of the app that can lead to threats. In other words, mobile banking app development uses open-source APIs.
Blockchain technology in banking is revolutionizing the way financial transactions are conducted.
Hackers can take advantage of these APIs to damage the app. However, to our relief, there are ways to avoid loopholes. The following are some vulnerabilities in banking apps and their ways to prevent them:
Lack of Proper App Ownership:
The line of ownership for mobile banking apps extends to different entities. One is the managers and IT department from the baking sector. The other is the developers who build the app. It can pose many security concerns. Therefore, there should be united ownership for banking apps.
Mistakes in app design can create loopholes that can cause threats. Proper testing can eliminate the flaws in the app architecture. Therefore, the developer must build efficient sessions and blocks in the code to achieve mobile banking security.
Insecure Storage System:
A mobile banking app should have features that provide security for users. These features include a fingerprint ID or permission system. Hackers can easily attack users if these features are not present. Therefore, it is essential to add these features for safety.
Making errors in source code is a common cause of security risks in banking apps. So, how can you avoid these mistakes? It is through proper testing procedures. The developers must perform testing to maintain a security bank online banking app.
Improper App Testing:
The main cause of security risks in the banking app is because of inadequate testing. The developers must test the app throughout its development process and consider security measures to identify bugs to maintain mobile banking security. As a result, it helps remove potential errors and prevent cyberattacks.
Safeguard Against Cyberattacks is a concise and impactful statement emphasizing the importance of protecting against online security threats.
The lack of customers' knowledge of computer infrastructure can lead them to install debug accounts. Therefore, the developers must come up with testing strategies to avoid such application version issues.
What are the Cyber Cases in Mobile Banking Apps?
Every industry is now adopting digital platforms for their operations. As a result, there are surging cases of cyberattacks. Similarly, as discussed earlier, the banking sector also faced fraud cases when it released the first security mobile banking app to the world. Given below are some prominent cyberattacks from hackers that can derail mobile banking security:
Counterfeit bank apps:
These apps look like real banking apps. They enable hackers to get sensitive data from the users. These apps are often present in alternative app stores and sites. Here, if the user downloads and enters their details, the hacker gains access to the user's mobile app account. As a result, they steal the user's money and savings. Most researchers and experts are now on a mission to detect and avoid these fake apps.
Banking trojans are often present in downloaded apps that the users install from third-party sites. Here, the users get misled by pop-ups that may imitate the bank's page. The hackers sent text messages to users that may contain malicious links. The users, without their knowledge, enter their personal and bank details. As a result, they get scammed and weaken mobile banking security.
Man-in-the-middle attacks involve cybercriminals manipulating the server setting and malicious network. Here, the hackers make the users pass through their network. As a result, it enables criminals to get the user's information.
Fake Flash Player:
These are video applications that the user installs via email or SMS. The hacker attaches malicious links to this message. The user installs the app and enters their credentials which the hacker uses later for their needs.
Svpeng is a mobile banking malware that hides behind other apps or SMS. It enables the hackers to gain access to administrator rights, carry transactions and make calls. Besides, it blocks the user from stopping the action.
Clickjacking is an interface spoofing that lures the user to click on the malicious page that the hacker has created. The hacker carefully designs the page with visual elements that trick the users. Besides, this case has failed mobile banking security many times.
These cyber cases have threatened the banking system. However, some solutions help mobile banking owners to protect their customers from such threats. Let us explore them.
What are the Best Practices for Mobile Banking Security?
With security threats on the rise, banking owners have cyber security solutions for banks. So how do you think we can enhance the banking security for the users? Given below are best practices for securing mobile security.
Multi-factor authentication is a verification method. In other words, the users must submit two passwords or verification factors to get into the bank's app. Here, the bank uses one-time passwords or biometric authentication methods.
NFC-embedded SIM cards:
These SIM cards allow the users to download credit card details from their bank apps to the card. It protects the user's transaction information and enables them to access the app without any risks.
Most banking businesses encrypt the details of the transactions. It allows the bank to protect sensitive data with regular security audits and penetration tests. As a result, it keeps mobile banking security intact.
Know Your Customer solutions involve verification methods that help streamline mobile banking apps. In other words, the bank adds techniques like biometric ID, documents or consent. Using these methods reduces the risk of theft and damages the user's bank account.
Real-time text and email alerts:
Using real-time alert messages allows users to detect the possibility of fraud and theft. Here, the users get notified whenever the money gets debited or credited.
It involves the bank getting information on login location and transaction activity of customers. As a result, whenever there is unauthorized access or login errors, the bank can take sudden action against this. They will notify the customer regarding this through email or text messages.
Most banking apps use secure internet connections and tools like HTTPS for mobile banking security. As a result, they can promise the customers a safe transaction and banking experience.
Digitalization has made banking easy and convenient for customers. Now, we can open an account and transfer money online. It made banking efficient and transparent. As a result, it has made banks look for secure mobile banking experience to provide solutions for customers.
Secure digitized documentation helps the banks to prevent fraud cases and give many benefits to the customers. As a result, it helps boost bank security.
How Should Users Protect Against Banking Fraud?
Along with safeguarding the bank from threats, it is essential to educate customers about mobile banking security. The banks must guide customers on using secure steps and safe tech tools. Given below are some ways to protect customers from theft and fraud:
- Install Verified Bank Apps
- Use Strong Passwords
- Avoid Insecure Wi-fi
- Ignore Phishing emails
It is a known fact that mobile banking apps have made the banking process easy for customers. So does the number of threats have also surged with this convenience. However, to our relief, there are tech tools and methods to ensure mobile banking security.
The banking owners must carefully implement this with care. So, if you plan to develop mobile apps for your app, contact the best developers. Appsierra gives you the finest solutions for your business. Elevate your banking security with Appsierra now.
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