Note from the Publisher: Yup, our household’s bank account just got hacked AGAIN earlier this week, a scenario we’re sure all FintekNews readers can relate to. This time, a meer $33 transaction from an unkown Chinese firm has caused us signficant disruption in pre-scheduled payments, etc. At this point, we’ve lost track of how many times our credit cards and bank accounts have been hacked over the years, and the bottom line is that these breaches have now become a mainstream and normal, albeit disruptive, part of life online. Computer Services Inc (CSI) has recently published an article detailing safety tips for banking institutions for attempting to thwart mobile hacks, which will become increasingly more common in coming years as more users move to mobile banking.
“In its study Consumers and Mobile Financial Services 2016, the Federal Reserve notes that “mobile phones have increasingly become tools that consumers use for banking, payments, budgeting, and shopping.” The study also revealed that almost 8 out of 10 adults in the U.S. now own a smartphone. Of those smartphone owners surveyed by the Federal Reserve, 53 percent claimed to have used a mobile banking app and 28 percent to have made a mobile payment within the previous year.
This mobile frenzy is a real boon to financial institutions. In its recent guidance on mobile financial services, the FFIEC agrees, “the mobile channel provides an opportunity for financial institutions of all sizes to increase customer access to financial services and decrease costs.” Unfortunately, that high-frequency usage and ease of access also make the mobile device a potential boon for cybercriminals.”