Mobile banking is a hot trend in the Indian banking ecosystem. All financial institutions are promoting mobile banking through their individual apps. The strategy is simple. When customers install the mobile banking app on their phones, they can easily process banking transactions such as checking their account balance, transferring money online, requesting bank statement and check books or activities that would have otherwise been executed at the physical bank branches.
Mobile banking helps shed substantial load of the banking operations, and also empowers users to access anytime and anywhere convenience of banking. The biggest hurdle in this beautiful story is the security vulnerability of these mobile apps which can convert a casual mobile transaction into a fraud for consumers.
Let us Understand 7 Key Reasons Why Your Mobile Banking Apps are Not Safe to Use
Reason 1: Unmonitored security flaws
The majority of the app stores such as Google Appstore and Android Marketplace do not review mobile apps on the basis of security features. This makes it quite easy for notorious developers to design and launch mobile apps that have a capacity to steal confidential data from user’s device.
Reason 2: Unsecure mobile devices
It is a rare phenomenon that consumers have installed a mobile antivirus on their phones while speculating a possible hack attack. An average smartphone or tablet user does not install any security software on their device which means that the security available is only a fraction of what is there on a laptop or a desktop. This factor makes smartphones vulnerable to security attacks.
Reason 3: Rising malware for Android
There has been a rise in detected malware for Android platforms by more than 400% over the past 12 months. This is alarming and further raises security concerns for android app users.
Reason 4: Inter-app Accessibility
The technology which is in place to keep apps separate on a smartphone or tablet does not separate them into private sandboxes. This implies that one app can easily read confidential details stored in the other apps on the same device. Who knows, your gaming app may be reading your banking app data all the time!
Reason 5: User negligence
The majority of the smartphone and tablet users do not even have the basic passcode activated on their devices. This security flaw can potentially give anyone a direct access to consumer bank account through the mobile banking app.
Reason 6: Free Wi-Fi trap
Have you ever paid attention to what lies behind a free hotspot or Wi-Fi network at an airport or café? You will be amazed to know that such free networks may be baits by potential hackers to intrude into your mobile’s network. The temptation of users to use these free networks exposes them to possible hacks.
Reason 7: Improper legal framework
There is no clear legislation so far that identifies various rights of users in case of a banking fraud through a mobile app. In case a fraud happens, users may have to go through a long legal battle with their bank before they get appropriate refunds.
Keeping the above 7 factors in mind, it is for the user to decide if they want to risk their financial details through a mobile banking app. Safe online banking practices and vigilant approach to technology can make banking a secure experience for users.
Fortunately, there are many security companies that realize this risk that is posed to the customer’s critical data and have come up with amazing solutions to minimize new age cyber crimes. Companies like Appknox have special expertise in the Fintech space securing over 150 companies globally. Appknox helps businesses stay secure by using a systems plus human approach ensuring businesses are covered all round.
Mobile security is a complicated game. Get to know your threats before they get to know your data.