7 Reasons to Reconsider Using Online Banking

In today’s digital age, more and more consumers prioritize the ease of use when selecting a bank, focusing on the convenience offered by mobile banking apps for Android or iOS. However, beyond the convenience lies a critical aspect that often gets overlooked: the security of these applications. Can users truly evaluate the reliability and safety of their banking apps?

Convenience vs. Security: A Dilemma

Each year, mobile banking applications are ranked based on various criteria, including user audience size and overall functionality. Generally, the more user-friendly and feature-rich an app is, the higher it ranks. However, one crucial aspect often remains under-examined in these rankings: security.

It’s widely known that applications designed to be highly convenient may sometimes lack robust security measures. Conversely, those that emphasize security can be cumbersome to use. This presents a dilemma: should users sacrifice security for convenience, or endure a less user-friendly but more secure application?

To help answer this question, we’ve identified several key security criteria for mobile banking applications. The more of these criteria an app meets, the safer it is likely to be for its users. Some of these criteria can be assessed by the users themselves, while others may require more technical knowledge. Regardless, awareness of these factors is essential.

1. One-Time Passwords (OTP)

A critical security measure in online banking is two-factor authentication (2FA), often implemented through SMS or other methods. Without 2FA, the risk of successful fund theft from user accounts increases significantly. Here are key points to consider:

• SMS OTPs: Does the application send one-time passwords via SMS? Often, developers might think that since you’re using a mobile app, there’s no need for an additional SMS OTP. However, this can be a significant security oversight.
• Operation Confirmation: What actions within the app require OTP confirmation? Ideally, registration, login, financial transactions, and changes to personal data or passwords should all be secured with OTPs.
• Disabling OTPs: Is it possible to disable OTP confirmations entirely? This could be a red flag.
• Password Attempts: How many incorrect attempts are allowed before the account is locked? If there are multiple attempts allowed without a lockout, this indicates a security risk.

2. Traffic Interception

The ease with which traffic can be intercepted using a banking certificate is another critical security concern. Conducting a man-in-the-middle attack can be challenging for the uninitiated, but detailed instructions are available online. It’s up to the banks to ensure their systems are robust enough to prevent such attacks. If an attacker can trick a client into installing an arbitrary certificate, intercepting traffic becomes much easier.

3. Malware and Targeted Attacks

Understanding whether malware has been specifically developed for your banking app is crucial. Various information resources regularly publish data on emerging threats, including those targeting mobile banking apps. If your bank’s clients are frequently targeted by hackers, it increases the likelihood of your personal account being compromised.

4. Response to Suspicious Transactions

Consider what happens when your card is blocked due to suspicious activity. Do you need to visit a branch to unblock it, or is it automatically unblocked after a short period? The former is more secure, while the latter is more convenient. This scenario illustrates the trade-off between security and convenience.

5. Operating System Vulnerabilities

The security of mobile banking apps can also vary depending on the operating system. On average, Android apps tend to have more vulnerabilities than iOS apps (3.8 vs. 1.6 vulnerabilities per app, respectively). Additionally, iOS vulnerabilities are less frequently exploited in real-world conditions compared to Android. Consequently, iOS users generally face a lower risk of being attacked. Android users, on the other hand, should consider using antivirus software to mitigate known vulnerabilities.

6. Automatic Vulnerability Searches

Automated services that check for vulnerabilities in mobile applications exist and are worth using. However, even if no vulnerabilities are found, it doesn’t guarantee absolute security. Conversely, finding vulnerabilities doesn’t always mean they are critical. Any additional information about potential weaknesses in the app can be valuable. Analyzing iOS applications is more complex, and free automated online services for this purpose are not yet available.

7. Importance of Regular Updates

The importance of timely updates for systems installed on PCs is well-known, and the same principle applies to mobile banking applications. If developers neglect to update their apps in line with operating system updates, including security patches, the risk of exploitation increases. Regular updates that address and fix vulnerabilities are crucial for maintaining a secure environment. Ensuring that applications do not run on outdated operating systems also helps mitigate potential risks.

Conclusion

The convenience of mobile banking applications should not overshadow the importance of robust security measures. Users must remain vigilant and informed about the security features and practices of their chosen banking apps. By understanding and evaluating these seven critical security criteria, users can make more informed decisions and choose applications that not only offer convenience but also prioritize the safety of their funds.

As the digital landscape continues to evolve, so do the threats posed by cybercriminals. Hence, staying updated and being proactive about security can significantly reduce the risk of falling victim to online banking fraud. Remember, while convenience is important, the security of your financial assets should never be compromised.