Mobile or m-banking as a service category is witnessing the fastest growth in the banking industry with usage of mobile phones at an all-time high. Over the years the service has evolved to provide banking experience at par with what one would get when present physically at the bank branch. Nonetheless the end-to-end banking solutions catered to by mobile banking come with its own set of risk and here are discussed few ways to avoid the same:
Fake applications: It is secure and safe to login via mobile apps for banking instead of logging via your mobile browser. One would always recommend and advise to download such apps from relevant websites as against downloading via a search engine as there are plenty fake apps that feature a similar user interface as the original app. These fake apps try to extract the confidential information which is shared by the user.
Also, there are third-party apps that expose user to some additional risks with the power of leveraging credentials from other apps. When using shopping apps do not keep the details of a particular bank or card saved as your preferred payment mode as it could facilitate access to your banking services, thereby enabling a transaction.
Malware: Malware is another threat to a mobile banking user with the increase in the adoption of this banking service mode. Different type of malware includes viruses, rootkits, trojans, spyware, malvertising etc.
SIM swap another risk to mobile banking: SIM swap is said to take place when one changes the old SIM with a new one. This is carried out when one wishes to change the SIM type, size or in a case when the SIM gets damaged or lost. And when the SIM swap has been initiated without your know-how by the fraudster, he or she can undertake several fake transactions using your mobile number.
In such a case the valid MSISDN or mobile station international subscriber directory number is moved to another phone. And the fraudster making user of the other phone, on receiving the PIN, carries out fraudulent transactions in your bank account. The user or the original bank account owner does not receive notifications and has no access to his or her account.
Do not use unsecure wi-fi networks: It is to be noted that when using free wi-fi available across several public places including coffee shops, airports, railway stations etc. the activity you perform may be visible to others. This is because these hotspots are spoofed by the fraudsters. For instance: the free and unsecured wi-fi available at railway station is named RAILWIRE and a fraudster can trick you to use another network created at or near the location by the name RAILWIRE1.
So, regardless of the ease with which banking customers can carry out transactions using m-banking service and save time and effort, one cannot afford to neglect the above listed aspects.