How to Use Mobile Banking Apps Securely?

While the amount of people who are using secure mobile banking apps increases every year, customers of online banking set themselves up for security threats, frauds, and other forms of cybercrime when using their smartphone.
According to a 2014 Deloitte report cited by Tripwire, 61% of people who do not use mobile banking apps said that security is their primary concern. So how big are the chances that someone can break into your bank account really?

In 2014 a malware called Svpeng has been detected in the U.S., the U.K, Switzerland, Germany, Russia and India. In the States the malware blocked the user’s phone and asked for $200 to unlock the smartphone. Once Svpeng got into the phone it began to look for applications from a range of financial institutions. The Trojan did not steal money or credentials, but rather it looked as if it was gathering statistics on mobile banking apps usage.

In Australia and New Zealand, a malware called Android/Spy.Agent.SI has been detected on Android devices this year. This time, the malicious software was able to steal a person’s bank details and even knew how to bypass 2-step authentication procedures. With all information in hand, fraudsters could easily transfer funds to a different account. Most importantly, the malware had not come from Google Play. The user would have had to deliberately install the application from other sources online, which means that security options had been changed by the phone owner so that applications from unknown sources could be installed. The takeaway: Don’t root your device and then install banking apps on it!

It is useful to know that iOS or Android smartphones don’t allow users to make admin-level modifications natively. Additionally, a verified market is available for downloading applications such as the App Store or Google Play. Mobile banking apps should also be secured by SSL security technology . Many large companies put their applications through source code obfuscation. This means that it will be more difficult for an intruder to figure out the source code.

Even though a lot of security features are currently in place in many apps, mobile banking applications still have security challenges that must be tackled. Security is one of the main concerns for financial institutions. People who wish to use mobile banking also need to keep security in mind. Finally, here are some useful security tips:

1. Don’t use mobile banking apps on a rooted or jailbroken device
2. Don’t download apps that did not undergo a vetting process (by either the App Store or Google Play)
3. Use secure Wi-Fi connections whenever possible
4. Put a password on your smartphone.

By following these recommendations, you will minimize security risks and diminish the odds of falling prey to cybercrime.

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