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Ivan Schneider
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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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Mobile security and fraud prevention are often considered to be check-the-box compliance topics. The above discussion should make it entirely evident that a perfunctory approach to regulatory compliance is the wrong way to proceed. The fast-moving technologies, alliances and competitors in the mobile banking market will require bank executives to make careful strategic decisions on capital allocation, resource deployment and business partnerships.

As a recommendation, it would be simple to list the five security options with the suggestion that banks go to the limit with all of them. However, that’s not a viable option for resource-constrained financial institutions, which will more likely make trade-offs and place bets as to how to allocate security budgets across these five technically challenging security areas.

Some banks may decide to bet on the most sophisticated multi-channel, back-end risk-based authentication in the marketplace, with the intention of putting its mobile banking application on every handheld device in the marketplace. Others may decide to place a bold platform bet on the security capabilities of a specific operating system, allowing them to meet regulatory requirements for risk-based authentication while focusing on the mobile OS or the hardware. Still others might make a play to be the bank of the future, implementing the most forward-looking biometric technologies on the most cutting-edge device in the marketplace.

The reality is that most banks don’t have unlimited funds, manpower, or time to implement across multiple technologies with the entire range of security protections. Each institution must decide what it wants its mobile business to be and then design a roadmap to get there.

The key recommendation: Go slowly and choose wisely.

[Speed Is the Key to Beating New Account Fraud.]

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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 unionsGin 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
-I 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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