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5 Critical Strategies for Mobile Banking Security

To the best of their ability, banks need to ensure that their services are available and secured within any mobile phone configuration. Because absolute security is nearly impossible to attain in the mobile world, banks’ back-end systems have to be prepared to detect anomalies and fraudulent activity in the event that a front-end channel has been compromised.
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Banks aren’t the only ones interested in having secure applications. In fact, they’ve not even alone in deploying secure applications for payments and mobile wallets. To serve this expanding market, mobile operators and device manufacturers are likely to attempt to differentiate their offerings through their respective security models.

Accordingly, a proliferation of new form factors that accentuate security and privacy is likely. This trend should afford financial institutions with an opportunity to forge useful new partnerships.

Already, some customers can order devices with security software pre-installed or available through a six-month free trial. “Network operators and handset manufacturers are enabling people to download and install security software to police and monitor their handsets to ensure there isn’t any snooping,” says ABI Research’s John Devlin. “A relatively small proportion of phones have that.”

Banks might extend upon the pre-installation approach by having their own mobile applications pre-installed on new smartphones. These applications may work in concert with other new technologies that bolster smartphone security at the device level. “There are moves from various hardware and semiconductor companies to improve security by creating a trusted execution environment,” says Devlin. “You can create closed areas on the processor that can prevent other software applications from being able to access, spy, or report on any data that’s happening in those secure applications, effectively putting in a firewall.”

Phones designed and built according to the NFC (Near Field Communication) standard can also ratchet up security by communicating with a separate token device, such as an NFC-enabled smart card, for an added layer of out-of-band communication. These phones would be capable of working with various point-of-sale schemes involving NFC, and banks would certainly have an interest in being involved in those transactions as well. Furthermore, the same security that governs the NFC chip would also be extremely useful for servicing the current generation of mobile banking applications.

[Next: Recommendation: Think in Terms of Strategy, not Compliance]

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pjauregui
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pjauregui,
User Rank: Apprentice
12/12/2013 | 4:15:56 PM
re: 5 Critical Strategies for Mobile Banking Security
Mobile developers still need to play their part by building and maintaining secure mobile banking apps.

Results from a recent study reveal that 8 out of 10 mobile banking apps contain build and configuration setting weaknesses. While the issues identified are merely informational in terms of risk, they do provide insight into the state of mobile development practices among leading megabanks, regional banks, and credit unionsGă÷in short, basic security best practices are not being followed.

Download full report: http://www.praetorian.com/prom...
Natalie McCaughin
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Natalie McCaughin,
User Rank: Apprentice
3/8/2013 | 10:00:36 PM
re: 5 Critical Strategies for Mobile Banking Security
I think people have become really comfortable purchasing online and assuming companies are providing some level of protection. As a consumer, its important to remember that your online security is sometimes not in your control - I was reading this blog and it was an interesting read on how to protect yourself even if you have been hacked: http://blogs.mcafee.com/consum...
Rock_Star
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Rock_Star,
User Rank: Apprentice
7/25/2012 | 3:40:23 PM
re: 5 Critical Strategies for Mobile Banking Security
-ßI depend a lot on shopping online and have
always been concerned about the risk of exposing my credit card information. A
must have is asking users to telesign in to complete a transaction by using
2FA. I am not sure why not all companies use this, in fact I feel suspicious
when an online store doesn't ask me to telesign in, now it just feels as if
they are not offering enough protection.
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