Mobile banking security can be complex. There are a number of important components to consider, and it’s necessary for banks looking to achieve all-around security for their mobile banking applications to implement several important layers.
Over time, mobile banking security practices have ramped up after unreliable, faulty user entry and authentication methods have led to phishing attacks and compliance issues. In response to these challenges, it’s necessary that banks make use of newer, more secure solutions that don’t rely on user interaction (and thus are resilient against phishing attempts) and comply with modern regulatory frameworks.
Read on as we dive into three main areas that are crucial for banks to consider when getting serious about their mobile security practices.
3 Layers of Mobile Security for Banks
1. Secure Onboarding (and Reactivation)
We’ve previously written about the challenges presented by mobile banking apps. The name of the game here is achieving cyber-security compliance, a task which can be easier said than done.
Ongoing developments in top regulatory compliance frameworks including PSD2, GDPR, and the Open Web Application Security Project (OWASP) make it clear that payment service providers need to take their ongoing commitment to achieving (and maintaining) compliance seriously.
This is typically a job for CISOs or other company executives to take care of. However, when using a mobile security provider that prioritizes cyber-security compliance, this can be a weight off of a bank’s shoulders.
2. Strong Customer Authentication
Compliance is also closely tied to strong customer authentication practices.
Banks are moving away from outdated authentication methods in favor of more secure measures. Take the SMS OTP authentication method, for example: Authentication via SMS OTP doesn’t allow for a straightforward implementation of several features mandatory for achieving regulatory compliance with PSD2 or similar frameworks. It can also result in higher overall costs, decreased user convenience, and increased exposure to security risks.
Strong customer authentication typically happens via mobile app. This method displays legible information for users to review, requires user biometrics, and issues an instant report to users.
3. Mobile In-App Protection and Threat Intelligence
Banks can achieve all-around mobile banking security with the right in-app protection and threat intelligence solutions in place. At Wultra, we offer a few key services that are crucial to attaining the necessary security for today’s banks.
In-app mobile protection prevents device issues, informs users about a potential problem, and allows them to directly remove a threat on their own device.
By integrating payment provider systems via API, banks and fintech companies can leverage the threat signals collected from the mobile devices. For example, they can use the information to open an incident in their Security Information and Event Management (SIEM) or stop fraudulent payment in their Fraud Detection System (FDS).
Banks can get up close and personal with the mobile devices that they secure by utilizing the help of an intuitive dashboard, which provides detailed insights into threats. Using the dashboard, it’s possible for banks to drill down to the security details of an individual mobile device.
Key Takeaways
To wrap things up, let’s recap: First, layers are crucial to provide comprehensive mobile security. It can’t be solved using a single approach. Instead, it’s necessary to apply various modules with different operation principles.
Human error remains a primary risk for banks. Even with the best of intentions, mistakes made by mobile banking users are often at the root of exploited security vulnerabilities. To stay safe, it’s best that banks take security-related responsibilities out of the hands of users and under the wing of an experienced security provider.
Finally, it’s always wise to read up on the latest security practices. Many approaches to mobile security that were valid just five years ago no longer hold up in the current digital landscape. Stay informed about current trends in the cyber-security sphere and lean on your reliable security provider’s skills to keep you and your customers safe.
Interested in learning more? Check out our presentation:
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