Mobile banking security faces numerous threats. Customers are just as subject to sophisticated phishing attacks balancing their e-checkbooks as they are in any other aspect of their digital lives.
The advantages of mobile banking to customers contribute to the dangers. Mobile banking means customers can conduct financial transactions wherever they are—but that sometimes means they are banking over unsecured public Wi-Fi hotspots. Many customers don't consider the risks of an unsecured connection when making a quick transfer or paying a bill with their smartphone. Motivated threat actors could set up public Wi-Fi hotspots where people are likely to log in to their banking apps—and then steal their credentials (and possibly more).
Malware also threatens mobile banking security. Hidden apps can run in the background and steal banking information and login credentials after a user closes them. Emails and SMS texts with links that compromise a customer's banking information can look like official communications from financial institutions.
The mobile banking app can be vulnerable, too. And even if a mobile banking app is built to high standards, it needs to be supported by a robust technology infrastructure that contributes to mobile banking security.
The advantages of mobile banking to customers won't offset the loss of confidence, lost customers and reputational damage that comes with a breach that exposes customers' financial data.