Learn Common Security Issues in Mobile Banking To Avoid

CryptoMode Mobile banking security concern

Mobile phones have taken over the modern world and for most, it’s  a tool one cannot do without. This may sound like an opinion but conclusive evidence from GSMA real-time intelligence data suggest it’s a fact.   The  analysis revealed there are 10.92 billion mobile connections worldwide as of 2022, in a world of only 8-billion people.  

Mobile applications have become a dominant part of our way of life alongside the growth of the usage of phones. From writing notes to chatting to banking, mobile applications nowadays dictate how many live, hour to hour, day to day.

In the world of finance, banking customers have also embraced the changes. Hardly anymore are the days of people running to visit the bank to get services in physical form.  People want everything in-hand and these demands increased during the Covid pandemic of the 2020’s.  

With the swing of habits, banking services have had to adapt & create decentralized options for  individuals. The top digital banks across the world,  Australia to Colombia to the USA, have had to create applications for modern smartphones and smart devices. Statista reveals that the percentage of the mobile banking penetration rate is 95% with generation Z.

Unfortunately, the penetration of mobile banking app hacks has invited security issues. A finding by Kaspersky in-lab detection found over 280,000 malware files a day. Most of those malware files targeted mobile devices. For that reason, it’s imperative for the new generation to learn about the top security issues in mobile banking today, when opening a digital depository account with any financial institution.

Top Security Issues of 2022

Unsecured Wi-Fi

What is more precious on internet devices nowadays than data? The good thing is that most institutions and public places have public Wi-Fi. One doesn’t need to buy data to use the web on a visit to a nice restaurant. They only need to ask for the password of the available Wi-Fi network, which is typically free. 

This setting is all too common and very convenient.  However, it is not always safe. And if not safe, How do you fix the security risk in unsecured wifi?  

The solution is not to avoid public Wi-Fi but to use it sparingly on mobile phones.  The ‘average Joe’ should not use unsecured, public-wifi to log in to mobile banking applications or other fintech or payment sites like PayPal.

Data Leakage

Another security issue in mobile banking is data leakage. One of the leading causes of unintentional data leakage derives from the usage of phone applications. 

For instance, dozens of ‘riskware’ apps are free and all over the official app stores. Overconfidence in Google Play, Samsung, and Apple stores is how a massive amount of mobile users are robbed of data.  People unaware when installing and granting permissions without checking security repercussions, are most affected by this security issue. 

Another source of data leakage is mobile applications that are enterprise-signed maliciously. Mobile malware programs utilize the distribution code native to popular mobile operating systems such as Android and iOS to migrate essential data across corporate networks without causing suspicion.

Network Spoofing

Here’s a lesser known hack.

Mobile banking users need to know with certainty the network to which they are connecting.   The spoofing of a network occurs when a hacker sets up fake access points or connections resembling Wi-Fi networks. In reality, they are traps set in public locations with high traffic. 

To hack data, attackers will find common and attractive names, such as using a title of  ‘Free Java Wi-Fi,’ to woo users into connecting to their spoofed wifi network. 

Another way attackers spoof networks is creating the need to create an account to allow users access to free services.

Don’t create an account to access wifi unless 100% sure of the company that’s offering that network.

Since most people have embraced a combination of email and password, hackers will then find leeway on their emails and other confidential accounts.  There’s a variety of things these hackers will do to people’s personal and business accounts, utilizing such basic data.    Example, log into the email of the victim;  Then see what accounts they have sending emails.  After seeing that, these hackers can easily visit the site, click ‘forgot password,’ and begin using the information given with the account created to gain entry.

Phishing Attacks

This method is an attack attempting to steal people’s valuable data identity by wooing them into revealing their personal information on websites that look legitimate. 

An example is a spoofed email from a legit institution and then distributing the email to many members of the institution. The message will need members to renew their membership within 24 hours. Victims of the attack will click on the link to a website that mimics their institution’s website. In doing so, they will try to log in, thus providing their personal data.

Non-Atomic Crypto Exchanges

Cryptos are the future, but in current times it’s still a bit  of the Wild West.   Flaws in different exchanges and tokens are being exposed regularly. 

Recently, digital pirates  hacked NFT auction of Bill Murray and stole a total of 110 Wrapped Ethereum (WETH).  That was a value of $174,000 USD.  Luckily someone with a lot of ‘bucks’ in their ETH wallet donated enough money to cover the loss, but still, the damage was done.

In June the Osmosis Dex was drained of $5-Million.    This caused another immediate shutdown of a DEX, which was attributed to an error in coding for the liquidity pools.

And of course, there’s the infamous Solana hack earlier in 2022, where another $5-Million dollars was drained.  It only affected ‘hot wallets,’ cryptos stored on-line, and attributed to the importing of data from Slope Finance.

To avoid many of these security flaws in crypto-banks and wallets, simply be aware of what cryptocurrency exchange you’re using.    Either stick to brands that have backing for the funds they are holding (ie: Binance & Coinbase) or only use atomic Dexes like SafeSwap, a truly decentralized exchange. 

Recently launched by the cryptocurrency brand SafeHaven, Atomic Dexes like this recently launched technology allow peer-to-peer swapping. There’s no middle-man services like most dexes that give hackers more time to hack or drain accounts..  

How to Avoid Becoming a Victim

All these security issues can be avoided with adequate knowledge of mobile banking vulnerabilities.   Reading and comprehending articles, such as this one or ‘the 5 common Zelle Scams’ can keep private information safe.

Once on the know-out, watch out for and detect any security breaches lurking. Remember that safety starts with yourself. So be more vigilant and increase your own safety with self-awareness.

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