Sunday, August 05, 2012

Things to Think About Before Using Mobile Banking

Security flaws in banking apps are not the only problem

By Mark Huffman,

Banks are increasingly urging customers to use mobile banking, to enjoy the convenience of accessing their accounts with their smartphones. But before jumping on the mobile banking bandwagon, there are dangers to consider.

"Trade securities, transfer funds between eligible accounts and get a single view of your Bank of America banking plus Merrill Edge investment accounts in one place," Bank of America says on its website. "You can also access a full range of investment products, analysis and market insights."

Bank of America and other financial institutions do provide security features and advanced encryption technology, which is good. But is it enough to provide protection against identity theft and other financial crimes? A number of researchers, including Paul O'Farrell of the Identity Theft Council, have warned some mobile banking apps have security flaws.

We've seen how hackers have generally been able to compromise PCs. Smartphones usually have less security than computers, though there are many new mobile security products coming to market. But what if you lose your smartphone?

Read the entire article here.