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Mobile Banking and Related Security Threats

The smartphone has brought a world of possibility to the average consumer’s fingertips. Now, this has come to include mobile banking. With fast-paced lifestyles and long lines at the banks, mobile banking has emerged as a thrilling convenience. However, this convenience brings cybersecurity concerns. Therefore, consumers who have turned to mobile banking for their financial needs must protect their financial privacy from cybersecurity breaches.

What Is Mobile Banking?

Mobile banking allows customers to access their financial institutions and conduct transactions through their mobile devices. Initially, this began with SMS Banking, which allowed customers to conduct various financial transactions by sending and accepting SMS messages or “texts.” In its most basic form, mobile banking allows customers to access their bank accounts and check on financial transactions. However, as the systems have progressed, customers can now make bill payments, transfer funds, and monitor deposits. Indeed, customers can now manage their investment portfolios and rearrange their investments through a smartphone or tablet. This has certainly increased everyday conveniences. However, it has also contributed to the speed with which finances can shift. Although, customers can review and monitor their accounts faster and more regularly, this also means greater security threats for the underlying financial information. This expansive access may lead to greater unauthorized breaches.

What Are The Security Threats Related to Mobile Banking?

US News reported in a recent poll that only 31 percent of companies have a mobile banking security strategy in place.  Mobile banking is less secure than in-person banking, or banking on a computer, because mobile security is divided between the various companies involved in providing the application.  For example, in the case of an application for mobile banking, this can involve the operating system designers, manufacturers of the application, banking agency, company that provides the smartphone or tablet, and even the company that provides web access.  Therefore, while each of these intermediaries may take steps to provide safety, it is important to have a comprehensive security system in place to fully protect mobile banking.  While financial institutions are prominent leaders in the movement to provide greater cybersecurity, mobile users can take steps to ensure their financial privacy remains private.  For instance, it is important to carefully review banking information through the mobile device.  The smaller screen has been reported to lead to greater mistakes, which allows more un-noticed breaches. Furthermore, always make sure to require a password at every login. When you are done accessing your account, log out of your account and close the application. Applications that remain running in the background allow for easier access to cyber-criminals. Of course, if you detect an error or discrepancy in your account, contact your financial institution immediately.  As with all cybersecurity breaches, early detection and action is the key to a fast resolution.

At the Law Offices of Salar Atrizadeh, we are experienced and skilled in the legal and practical implications of cybersecurity.  You may contact us to speak with an attorney who can explain how you can take steps to better protect your mobile security.