BANGALORE, INDIA: Wireless devices are soon set to usher in a new market revolution by enabling mobile banking, mobile payment, mobile wallet, mobile money transfer and other financial services to users.

According to a recent study by the Reserve Bank of India, of the 800 million mobile phone subscribers in India over 8,87,000 already use the mobile banking technology. In addition, the growth rate of Internet banking users has stabilized. However, analysts still feel that security is an area of concern.

In an interview with CIOL, Sashidhar Thothadri, regional sales manager, mobile communications, Gemalto, emphasises the need to educate cellphone users on security concerns as they are more prone to online frauds compared to computer users.

Q: What are the major security concerns associated with mobile banking in India?

Sashidhar Thothadri: Mobile banking offers a higher level of convenience for managing one's finances, even from the comfort of living room. However, it comes with security challenges. Individual Online account details have been compromised in the past. The mechanism of 'usernames and passwords' is susceptible to phishing and fraud.

Mobile phone spyware has been a concern for years. Mobile users are more likely to fall for phishing scams than PC users because mobile devices remain activated all the time and small-screen formatting makes the fraud more difficult to spot. Phishing, pharming, keyboard logging are other common techniques deployed by fraudsters, and in recent years, we have seen fraudsters deploying even more sophisticated methods, e.g. Man-in-the-Middle or Man-in-the-Browser. Incidents of attacks sometimes go undetected for days, thereby increasing the levels of exposure.

Also read: Tips for safe mobile banking

Q: How do you rate the awareness of mobile phone users regarding online security?

Sashidhar Thothadri: By and large, end users have limited knowledge and awareness of online security. Some may be vaguely aware but they do not know how to protect themselves. However, the good news is that banks and other players in the ecosystem are learning from past incidents and utilizing technology and implementing technology and preventive measures to protect the end user. They are also constantly educating their end users to increase their awareness.
 
Q:  What are the measures that banks need to take to make mobile transactions safer?

Sashidhar Thothadri: According to the recent RBI guidelines for end-to-end encryption, banks can develop various apps to make mobile transactions safe. Encryption of transient data is a must to ensure captured information is not usable by fraud. Banks need to educate their customers on the various types of attacks they are vulnerable to so that they remain cautious

Q: Is there a need for mobile users to install additional security layers to make banking safe?
 
Sashidhar Thothadri: Additional security with PKI & OTP definitely enhances security and protection for a subscriber. The SIM card, being the most secure component within a phone, is the ideal device   to store such secure applications. Both OTP and PKI technology can be integrated onto the SIM card so that when the user carries out banking transactions on his mobile phone, the bank securely identifies the unique user via the secure application residing on the SIM card.

Q: How is Gemalto planning to address security issues in mobile banking?

Sashidhar Thothadri: Gemalto can provide a wide a range of services to secure end-to end-data. The data can be secured over the internet, SMS or (GPRS/3G) using encryption protocols. Gemalto provides a comprehensive set of financial services. Its mobile banking solution offers options such as mobile payments, prepaid airtime purchase, bill/utility payment, remittance and peer-to-peer transactions. The solution is designed to integrate easily with the existing mobile network and banking infrastructure. It offers a customizable, end-to-end, comprehensive and secure Mobile Banking solution with the lowest entry barriers.