Financial Institutions Must Address Security Concerns In Mobile Banking And Payments

by Mercator Advisory Group 0

Mobile banking is rapidly gaining momentum and as it attracts consumer it will attract fraudsters who will be looking to take advantage of the mobile phones vulnerabilities. While consumers feel fairly comfortable with simple low-risk activities such as alerts when it come to payments they are much more concerned about security.

Security factors that financial institutions must take into account include mobile malware, mobile software/app assurance, application and OS trust management, data protection, identity and access management, according to IDC Financial Insights. Tactics banks should consider include mutual authentication approaches that incorporate multi-factor, multi-layered security techniques, for example, online banking transaction confirmations via SMS or call back.

Banks have to balance the need for security with the important need to provide a usable experience for the customer. “If it’s too hard, no one will use it, and if it’s too easy it might be insecure,” said Drew Sievers, cofounder/CEO of mFoundry, San Francisco. “In the mobile category, it’s important for a bank to use a solution that has multiple factors of authentication, leveraging something the customer knows like a special mobile PIN, and something the customer has like their phone.”

For more information read the article in Mobile Commerce Daily: