The top 5 cyber security threats to future of mobile banking

July 24, 2012 by ofonseca

As mobile banking grows in popularity, so do the dangers of data breach and identity theft.

In fact, these data security dangers are so significant they could threaten the future of the mobile financial services industry.

To get a better understanding of the industry’s cyber security woes, a powerful trade group conducted a comprehensive survey of mobile experts from 50 financial institutions. BITS, the technology division of the Financial Services Roundtable, conducted the poll to find out the top mobile data protection threats and the best way to combat them.

Here’s what they found:

1) Mobile data protection must keep up with the lighting-speed pace of innovation.

2) Consumers are scared to use mobile banking. Financial institutions must change public perception of data security measures, which means data protection measures must work.

3) Cooperation on mobile data protection and data security is a must. Everyone involved, such as device manufacturers, network operators, financial institutions and app developers, must work together to develop effective mobile data protection solutions.

4) Consumers must take greater responsibility for their own data security. Consumers need to be more careful about not losing their smart phones and protecting the data inside of them. They should guard their phones the same way that they guard their wallets.

5) Balancing data security and data privacy. As consumers want more convenience, financial institutions need to find the right balance between allowing them to conduct more transactions, but still making sure their personal data is protected from data breach and identity theft. Financial institutions need to educate their customers on data protection methods, like having them lock their smart phone with a password.

Do you have similar concerns? What are your biggest worries regarding mobile banking and data security/identity theft issues? Let us know. We’d like to hear them.

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