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Banks must improve mobile banking procedures: report

Banks must improve mobile banking procedures: report

Mobile transactions “must have end-to-end network encryption”

A new report warns banks offering mobile banking to ensure security is up to scratch to prevent the spread of viruses and malware.

The report, released by industry analyst Ovum, contends financial institutions can no longer ignore the issue. Principal analyst from the company, Graham Titterington, said ignoring security problems is not an option.

“Mobile banking is inherently vulnerable. Mobile devices may be lost, stolen or hacked and are used in situations that are inherently less secure than sitting in an office or at a home computer,” Titterington said.

He warned the mobile banking interface would be simple to infiltrate compared to the wireless environment.

“Mobile networks may be intercepted either by breaking the wireless encryption mechanism or by hacking into the wired backbone of the network where encryption is not mandatory under telecommunications standards. IT malware that compromises back-end servers, but is harmless in the wireless environment, may be passed through the mobile banking interface.”

Earlier this year, vice-president of product security at Research in Motion (RIM), Scott Totsky, spoke about the future of security in mobile devices, cautioning they could be a security risk for CIOs.

Read more: Five things you need to know about smartphone security

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Tags ovummobile malwareRIM BlackBerryphone security

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