Top Mobile Banking Risks

New research from BITS, the technology policy division of the Financial Services Roundtable, gauges the financial industry’s mobile worries. Its current list of top mobile banking concerns was compiled from a poll of mobile experts at 50 U.S. financial institutions.  The top six areas of concern, according to the poll, are:

  • Rapid growth. Mobile banking and payments continually change, and the expectation among mobile experts is that the mobile channel will soon become consumers’ primary financial-services platform. Because the channel is convenient and can be customized, users will migrate from PC banking and payments to mobile. The more mobile users, the greater the security risk.
  • Need for new security controls. Because the mobile threat landscape is growing – Symantec in its just-released Internet Security Report says targeted attacks on mobile phones are increasing – financial institutions must be diligent in their efforts to keep up with emerging mobile threats. That means they have to make investments in security controls specific to mobile.
  • More players, more risks. The mobile system depends on a number of players, many of which fall outside the scope of core financial services. Device manufacturers, operating systems, network operators, application developers and others all are involved. And they all need to address security.
  • Privacy issues. Emerging mobile privacy issues, such as those revolving around geo-location, will become more critical. As more mobile technologies emerge, institutions will have to balance customer and member convenience with security and fraud prevention.
  • Role of consumers. Financial institutions must develop strategies to educate their customers and members about actively managing their own mobile-device security.
  • Anticipating risk. As more mobile services hit the market, banks and credit unions must balance innovation with fraud protection. More threats will emerge as adoption grows. Anticipating new risks will be paramount.
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