What Is Mobile Banking?How Does Mobile Banking Works?

 

WHAT IS MOBILE BANKING?

 

Now, banking is an industry which deals with the transaction of money. We know the financial institutions that come under this industry as banks. No banks primarily deal in accepting deposits, withdrawing money on demand. They own profit by charging the interest in lending the deposit money to other people. In 2016, the country has seen one of the greatest economic revolution that is D-monetization and from there started the phase of digital banking.

Now, mobile banking is the type of banking in which a bank provides its facilities on the mobile app. It is a bank app that you can download on your mobile through Google Play or App Store. In this type of banking, we expected customers to download the app and enjoy the features it can also be availed on basic phones and smartphones.

 

HOW DOES MOBILE BANKING WORKS?

 

The basic idea of mobile banking is that a person moves some cash to a mobile wallet, to electronic money, sometimes referred to as e-money. This is done through an agent associated with a telecommunications company or done by a banker that may be associated with the mobile money provider, which could be the bank itself. The money then resides in the mobile wallet and can pay other people, pay bills, pay for loans, etc.

Technically, a mobile wallet need not be associated with a phone, but in most countries, it is. Suppose person A wants to move money to person B. Person B also needs a mobile wallet or a bank account, if the mobile banking firm allows payments directly into bank accounts.

The application will ask who the money is going to, sometimes just the name and their phone number is enough, and then how much to send. Press a button and “poof” the money goes into their account. Sometimes it “floats” in an intermediate account until person B accepts it. Or the mobile banking firm needs to check that Person A really has the money in their wallet, to begin with, and that person B is a legitimate recipient. After the transfer, Person B can then find an agent, or bank, to move the e-money back into cash. Or person B can just hold it in their mobile wallet for future transactions of their own.

Variations on this basic transaction mainly deal with the elements in-between person A and person B once they have an e-money account of some type. The regulatory structure and the operators of mobile banking systems determine how these elements are constructed and what risks may associate with them.

 

MOBILE BANKING SECURITY:

 

We are going to discuss mobile banking security. The increasing uses of the smartphone have enabled individuals to use various applications, including mobile banking applications. More and more individuals have used mobile applications for banking as compared to the traditional desktop or web-based banking applications. Mobile banking refers to the use of a smartphone or other cellular device to perform online banking tasks while away from your home. Desktop computer for various uses, such as monitoring account balances, viewing mini statements, account statements, transferring funds between accounts, bill payments, etc.

Now let us discuss some threats to mobile banking. The first threat is mobile banking malware. There have been incidents that involved sophisticated viruses. In fact, in banks, mobile apps users steal or swerve details and even two-factor authentication by presenting victims with a fake version of the login screen. When they access their legitimate banking applications, a key vector by which the mobile banking malware gets into the mobile device is through malicious applications posing as legitimate applications that users download and then become infected for prevention against malware attacks. One must follow the following suggestions download and use NP malware protection for the mobile phone or tablet device to keep the banking app software up-to-date. Using the latest version of the software allows receiving important stability and security fixes.

Timely use of security software applications for detecting in removing threats, including firewalls viruses and malware detection, and intrusion detection systems. The mobile security solution should install and activated. Read touted should only download applications onto the smartphone from the market. After looking at the personal reviews and star ratings and check the permissions that the application requests and ensuring that the request matched the feature provided by that application.

The second threat is the fishy mission or mission attack. An attacker attempts fishing on to the mobile phone through SMS, text message, telephone call, fax voice message, etc with the purpose to convince the recipient to share their sensitive or personal information.  For prevention against fishing attacks, emails or text messages asking the user to confirm or provide personal information like debit card, credit card, ATM, PIN, CVV expiry date password, etc. These should be GU secure socket players and transport layer security should install in mobile banking apps thus helping to prevent phishing and man-in-the-middle attacks.

The next threat is jailbroken or rooted devices. This practice uses to gain unrestricted or administrative access to the device's entire file system.  At the risk of exposing the device vulnerable to the malicious apps downloaded by breaking its inherent security model and limitations, allowing mobile malware and work apps to infect the device and control critical functions such as SMS. This is the mobile banking app security expose to extreme risk on a jailbroken device.

The next threat is an authentic operating system and no secured network connections risk factors, such as outdated operating system versions. Using no secure Wi-Fi network in mobile devices allows cybercriminals to exploit an existing online banking session to steal funds and credentials. To prevent the use of secure network connections, it's important to connect only to the trusted networks, avoid the use of public Wi-Fi networks.

More secure and trusted Wi-Fi connections identified as WPA or wpa2 requiring strong passwords should be used. Now, I will suggest best practices for users to remain safe while using mobile banking.

• Number one is to enable passwords on devices, strong passwords should enable on the user's phone tablets, and other mobile devices. Before mobile banking apps can be used, more layers of security provided by these devices should be used.
• Number two is the bank account number, or I pin should not be stored on the user's mobile phone number.
• Number three, the user should report the loss of mobile phone to the bank for them to disable the user's eye pin and his access to the bank's account through the mobile banking app.
• Last but not least, when downloading the bank's mobile app on the mobile device, the user should go to a trusted source such as App Store for iPhone and Play Store for Android. Users can or check the bank's website for the details of the ways to receive the app downloaded URL, whether in the response to his SMS or email to the bank, and then install the application. The app from any other third-party source should not be downloaded.