Sunday, 2 February 2014

DEEPINDER KAUR, 1273532, F1, Q-19 IS MOBILE BANKING MORE SECURE THAN ONLINE BANKING?



It wasn't that long ago that an account deposit or withdrawal required a visit to your bank to complete the transaction. Banking was inconvenient and time consuming. Today, we have lots of options when it comes to financial transactions. Mobile banking and online banking are increasingly popular way to monitor and manage your money.

But mobile banking is somewhat secure than online banking just because there are so many variations of banking apps and methods in the market. A thief has no way of predicting which method a potential victim might use.

REASONS:

Unique banking identity: A person’s banking identity is more closely tied to their mobile device (as well as to their SIM card) than would be the case with a laptop or PC. As such, only a user can access that device with a unique four-digit PIN or password, adding a layer of security at the outset. Also, incorporating self-erase capabilities to passwords, which erases all the content on a smartphone or a mobile device if the PIN number has been entered incorrectly multiple times, adds an extra layer of security.

Locating lost or compromised devices :By using Apple’s “Find My Device” service and Android’s “Lookout,” users can recover missing mobile devices as well as wipe them clean of all personal data before the information has been comprised. Certain features also enable users to make their mobile devices ring, locate them on a map, lock them or erase all of their personal and private data remotely from their browsers. Only a small number of laptops have this capability, while the PC completely lacks this functionality.

Preventing fraud through geolocationand geofencing services :Global Positioning Satellite (GPS) capabilities can track the whereabouts of a mobile device as well as alert both the consumer and their bank immediately of the potential fraud, a service known as “geolocation.” For example, a physical credit card that has been used hundreds of miles away from where a phone is registered could be a sign that at least one of the two items has been stolen. Similarly, “geofencing” can alert users if their device is being used outside of a pre-defined geographical region. For example, if a consumer has activated their mobile banking app for use only in the state of Illinois and a transaction is made in Ohio, the device owner will be notified immediately. No such capabilities, of course, are available for PCs and laptops

Encrypting and complying with regulation: Finally, all mobile payments or banking applications must be compliant with PCI data security standards. The PCI Security Standards Council has recently released new mobile payment guidelines on Payment Application Data Security – Standard (PA-DSS), PIN Transaction Security (PTS), and Point-to-Point Encryption (P2PE) – that will further enhance the security practices employed by merchants and mobile payment application developers. Laptops and PCs do not have these PCI standards in place.

 

As customers become more familiar with mobile banking app security and learn to trust a bank's mobile app brand, they will be more willing to use these tools and they are a lot safer than online banking so customers will prefer mobile banking over online banking.

 

 

 

 

 

 

 

 

 

 

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