The Power of Mobile Banking: How to Profit from the Revolution in Retail Financial Services

CHAPTER 7 Risks, Problems, and Headaches

Know What You’re Getting Into

At this point, let’s hear from Annetta Cortez, an experienced and respected risk management consultant to the financial services industry. From Annetta’s perspective, the main risks of mobile banking are similar to the risks associated with Internet banking.

Here is Annetta’s quick list of main risks, and it is worth reviewing:

• Phishing. This usually involves a fake link or fake request for login information.
• Identity theft. Identity theft is usually done on the back of phishing, when other personal information is stolen, rather than simply the direct theft of money.
• Keylogging. This is notably done when different systems are used—such as in an Internet café. The computer captures what is being typed. In this context it is not a threat for mobile devices. However, malware may be used that creates a similar threat on the mobile device.
• Pharming. This happens when a bank’s URL is hijacked and the consumer is redirected to a fake site. Similar issues can happen on mobile devices when fake apps are provided.
• Malware. Mentioned earlier, this is a more general term for the kind of programs that can create security problems. Mostly this is spyware and, in the case of mobile banking, SMS Trojans. Any of the previously listed issues can be delivered via malware.
• Malicious applications. These are generally the mechanisms by which the malware is delivered. They include fake apps that carry malware with them or that ...