Javelin Strategy & Research’s Mobile Banking Security research has shown that for 44 percent of polled banking consumers, the mobile browser is the most widely used of the three channels and is also perceived to be the most secure. Mobile bankers with smartphones view the browser as an extension of online banking. However, online banking using a downloaded app is the second most widely used channel and actually the safest for mobile bankers, with 25 percent of consumers using this channel, the report indicates.
The report has revealed that SMS banking, used by 19 percent of interviewed mobile bankers, is declining in popularity and is the least secure m-banking channel. However, consumers are using both their smartphones and feature phones primarily to check account balances and receive text message alerts.
Based on the report, Javelin has come up with a mobile security checklist. According to this checklist, FIs should educate consumers about SMiShing, a form of phishing that uses text messages to trick consumers into giving up personal information and encourage consumers to download third-party security software to help them vet websites and protect against viruses.
Furthermore, the Javelin checklist encourages FIs to follow good standard security practices: security style guides for developers, MATs and FATs security testing in QA, blind penetration testing by independent third parties and access penetration testing by independent third parties. Finally, FIs should build into their applications the ability to remotely deactivate their application. Any data stored on the device should be done so fully encrypted and in such a way that the FI’s application can wipe that data in the event the device is lost or stolen.
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