Mobile banking expected to see rapid growth but questions asked over security

News by SC Staff

Mobile banking is set for rapid growth according to IDC.

Mobile banking is set for rapid growth according to IDC.

The IDC financial Insights report of 14 US mobile banking solution providers claimed that despite a rather slow start, mobile banking is poised for rapid growth, and banks should be preparing themselves to support this channel.

While the most popular mobile banking function has so far been checking balances, the report also suggests that there is demand for functionalities such as transferring money between accounts and accessing higher control functions from mobile devices.

According to Trend Micro, login details for online banking - once stolen by cybercriminals - are typically sold priced as a percentage of the available balance on the account. Today, UK bank accounts are traded in underground forums for as little as three per cent. These accounts often feature personal, business and offshore accounts.

David Sancho, senior anti-virus researcher at Trend Micro, said: “In Europe the banking industry has been guilty of tardiness in deploying security technologies for online banking.

“While banks need to provide additional security for online banking – whether from a PC or mobile device – consumers need to ensure access to their personal banking data is secured. Given the popularity of mobile banking as outlined in the IDC report, it is only a matter of time before online thieves find a way to break into the system.”

Andrew Harrison, UK CEO of The Carphone Warehouse, said: “We have seen an increase in customers using smartphones to carry, share and manage confidential, personal information. The recent findings by IDC demonstrate that mobile banking is on the rise and just like online banking, will require specific security measures to ensure banking details are protected from theft and cybercrime.”


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