Mobile banking security has always been a hot topic because of the number of apps on the market and their widespread use. These types of banking services allow consumers to access their financial accounts from almost anywhere, at any time of the day or night.
Mobile banking includes many different services, such as receiving account balance information, transferring funds between accounts, making payments on bills, paying for purchases using the phone’s near-field communication (NFC) capability or QR codes, and even using the device as an ATM card replacement.
Customers simply need to know their user ID, password/PIN, and banking credentials to get started.
Let’s take a look at the evolution of this vital asset in today’s modern world before continuing to talk more about mobile banking security.
The Evolution of Online Banking
When it comes to online banking, the internet has made things easy in more ways than one. The convenience of being able to transfer money to anyone in the world without having to be there in person is so much simpler.
Not only that, but you can also have your bank statement sent directly to your email. However, with the internet being so beneficial to society, there are also some downfalls.
Mobile Banking App Security
Online banking has become increasingly popular over the last few years. People have come to realize the importance of managing their money online and saving time traveling to a bank.
People are also becoming more interested in online shopping, which involves transferring money from their savings accounts into their current accounts for purchases.
However, security is a growing concern as we transfer more and more of our personal information online, and criminals gain the ability to hack into huge databases and steal this information. Some people even suggest that banks don’t have strong enough mobile banking security to stop hackers.
The good news is that online banking has become more secure over the last decade. Banks have learned their lesson and know that they need to keep customers’ information safe to survive.
This means keeping up with new security standards like Chip/Pin authentication, two-factor authentication, data encryption, and the use of strong passwords.
Banks also understand that all online banking is done through computers or mobiles, so these devices can monitor activity and report any suspicious behavior such as login attempts from different locations.
If they see multiple logins coming from different locations, this could indicate that a hacker or piece of malware is trying to access your account.
Financial Cyberthreats—Is Mobile Banking Secure?
The security methods of mobile banking are the same security methods used for other online services. Mobile devices can be protected with passwords, screen locks, encryption, and biometric scanners, but that is not enough to ensure your money stays safe.
Financial cyberthreats are constantly evolving. These days, scammers don’t just want your credit card number, they want your credit card number and identity.
You may even ask yourself the question, how can I protect my mobile banking? Well, mobile banking is expensive, and you don’t want to trust your hard-earned money with a company that doesn’t have your best interest in mind.
Therefore, keep reading to find out which steps you can take to make your daily mobile transactions secure.
Ways to Keep Your Data More Secure?
Before doing anything that requires you to share your financial information, it’s important to know what kind of security measures are in place. Mobile banking is relatively safe, but there are several things you can do to keep yourself protected while managing your money on the go.
Mobile Banking Security Tips
1. Verify Your Financial Institution’s Security Measures
Before using mobile banking, it’s good to know whether or not the financial institution you are working with has been implementing security measures.
For example, in order to help safeguard your account information from potential cyberattacks and identity theft, some financial institutions keep data on servers that aren’t connected to the internet. Some banks also offer their customers a free passcode to help prevent any unauthorized access.
Finally, you need to verify that the financial institution is FDIC insured. This means that if something were to happen to the bank, your money would be safe up to $250,000.
2) Help Protect Yourself Online by Avoiding Phishing Scams
Phishing scams can pose a serious threat to your financial information. Phishing occurs when someone pretends to be a reputable company in order to get you to share your personal data, such as login credentials and Social Security number.
How can you protect yourself? One way is to learn how phishers work so that you can spot their attempts before they trick you. The next thing you should do is enable two-factor authentication on your mobile app.
Two-factor authentication adds another layer of security by requiring your phone number as well as a passcode in order to log in, fixing any mobile banking app security issues that may occur.
3) Back Up Your Data from Time to Time
Having a record of all your transactions, investments and bank balances can be extremely helpful if there is a problem with your mobile device.
For example, you can use online banking to back up the data on your mobile device by exporting it as a PDF or CSV file. This way, if something happens to your phone, you still have access to all of the information that matters most to you.
4) Pay Attention to Apps You Receive from Your Financial Institution
Many people ask the question—can mobile banking be hacked? The short answer is yes and no.
If you only download apps that come directly from your bank, you’ll have no way to expose your phone to hacks. However, the opposite is true if you install unauthorized apps with no official background.
The official app will be an exact duplicate of the website, so if you get a suspicious-looking app, it may not work properly.
5) Check for Suspicious Activity by Implementing Two-Factor Authentication
Two-factor authentication is designed to help protect your accounts from being hacked. With this system, even if someone manages to get your login credentials, they won’t have access to your account because a second passcode will be required.
If you’ve forgotten your two-factor authentication method and need help retrieving it, contact the financial institution that manages your account.
Mobile Banking Security—What the Future Holds?
The future of mobile banking looks promising, but only if the security gets better. We’ve come a long way from having no encryption or advanced authentication, but we won’t be satisfied until our money is safe in our pockets, not just in our hands.
Keeping data safe is a tough task in this day and age, where cyber threats are getting more sophisticated every day. In order to keep your data safe, you need two things—awareness and common sense.
These two are the best mobile banking security best practices anyone can employ at no additional cost.
Awareness means knowing the cyber security threats people face every day, knowing how to spot a phishing email or a fake website, and being aware of how to use mobile devices securely.
Common sense is not clicking on strange links or downloading random attachments. You have to know what you are doing and when to do it.
Mobile banking offers many benefits, but it’s also important to know how to protect your financial information. If you follow these tips, you can use mobile banking with confidence and get the most out of your money management.
Just like anything else, mobile banking security is something no living soul should take for granted, especially those who carry out daily transactions.