Mobile banking is a service offered by banks and financial institutions that allows customers to conduct banking transactions using their mobile devices, such as smartphones or tablets. With mobile banking, customers can access their bank accounts, check their account balance, transfer money between accounts, pay bills, deposit checks, and even apply for loans.
it was becoming increasingly popular even before the COVID-19 lockdowns. Before the epidemic, 33% of bank clients used a smartphone app, according to research done for the American Bankers Association. A mobile app is used by 44% of bank customers nowadays.
Is Mobile Banking Safe?
Mobile banking can be safe when proper security measures are in place. Banks and financial institutions that offer mobile banking services typically implement several security measures to protect their customers’ information and transactions. These measures may include:
Mobile banking apps require customers to enter their login credentials, such as username and password and often include two-factor authentication for additional security.
Mobile banking apps use encryption to protect customers’ data and transactions from being intercepted by hackers or unauthorized third parties.
Banks and financial institutions can send security alerts to customers’ mobile devices to notify them of any unusual activity or potential security breaches.
Many mobile banking apps support biometric authentication, such as fingerprint or facial recognition, which is considered more secure than passwords.
Banks and financial institutions regularly update their mobile banking apps to address any known security vulnerabilities and to ensure they remain up-to-date with the latest security features.
Despite these security measures, it is still important for customers to take their own precautions when using mobile banking. This includes using strong and unique passwords, not sharing login credentials with anyone, avoiding public Wi-Fi networks when conducting sensitive transactions, and regularly monitoring their accounts for any unusual activity.
Be wary of these kinds of cyberattacks
There are several types of cyber attacks that can target banking systems and their customers. Here are some of the most common types of banking cyber attacks:
A type of social engineering attack in which attackers use fake emails, text messages, or websites to trick victims into sharing their sensitive information, such as usernames, passwords, and credit card numbers.
Malware is a type of software designed to gain unauthorized access to a victim’s computer or mobile device. Malware can be used to steal sensitive information, such as banking credentials, and may also be used to control the victim’s device, allowing attackers to carry out fraudulent transactions.
Distributed Denial of Service (DDoS) Attacks
DDoS attacks involve overwhelming a website or system with traffic, effectively shutting it down and making it inaccessible to legitimate users. In banking, DDoS attacks are often used as a distraction technique, diverting the attention of IT and security teams while attackers carry out other malicious activities.
Ransomware is a type of malware that encrypts a victim’s files or devices and demands payment in exchange for the decryption key. In banking, ransomware can be used to extort money from banks or their customers.
Insider threats involve malicious actions carried out by someone who has authorized access to a bank’s systems or data. This can include employees, contractors, or partners who intentionally or unintentionally compromise the security of the bank’s systems or data.
Account Takeover (ATO) Attacks
ATO attacks involve stealing a victim’s login credentials to gain unauthorized access to their bank account. Attackers can use stolen credentials to transfer money, make purchases, or carry out other fraudulent activities.
While mobile banking provides many benefits, it is important to consider the security risks and take appropriate measures to protect against cyber attacks. Banks and financial institutions must implement strong security measures to protect their customers’ information and transactions, and customers must also take their own precautions, such as using strong passwords, avoiding public Wi-Fi networks, and regularly monitoring their accounts for any signs of suspicious activity.