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Do's and don'ts of safer mobile banking

The number of mobile banking payments across India has witnessed a tremendous growth in the last few years

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DQINDIA Online
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A seamless and secure digital banking experience is a must for customers in today’s time given that we all are so dependent on the digital ecosystem. We are all logged in throughout the day on our computers and mobile devices, and life without them is unthinkable. A majority of our transactions are online. Matching pace with this momentum, banks, too, are prioritising digital transformation, accelerating the speed of digitization and providing remote solutions through their systems like never before. Their goal is to increase customer engagement and loyalty, reduce costs along with improving operational efficiencies. To achieve this, banks and financial institutions have turned towards tech-based solutions like artificial intelligence (AI) that can help them create a safe environment for users to transact without any difficulties.

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The number of mobile banking payments across India has witnessed a tremendous growth in the last few years. According to reports, mobile banking applications are currently used by 8 out of 10 Indians with bank accounts in metropolitan cities. In 2022, India became the second largest user of mobile banking. Looking at the global scenario, current forecast estimates that as many as 2 billion people - 50% of the world’s banking population use smartphones for financial services. At home, digital payments across India have witnessed tremendous growth as well due to the increasing acceptance of biometric authentication and the widespread use of smartphones. Consumers are becoming interested in using apps to complete financial transactions due to their convenience and speed.

With the rise in demand, banks face more challenges to secure applications from fraud and build customers' trust. Smartphones are consumers' preferred digital payment methods for transactions, so it is essential to secure them. Mobile apps are easy to install and use, which adds to their popularity. The same factors that make them easy to install and use, also make them easy to exploit. This can result in a number of critical security issues. This makes it  important to understand the basics of safe mobile banking. It is crucial to take precautions when using mobile banking to protect your information and avoid fraud.

With the increase in digital payments, financial fraud has also increased. According to a survey, 42% of Indians have experienced financial fraud in the last 3 years. It is the need of the hour to restore the integrity of digital transactions. Learning best practices for optimizing digital banking is critical for everyone to comprehend the fundamentals of secure mobile banking. There are a few simple mobile banking do’s and don'ts to protect ourselves against scammers. Consumers can avoid being a victim of mobile banking breaches by being aware of them and exercising caution when it comes to their security.

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  1. e-signature scams and phishing attempts: Fraudsters continue to instigate phishing scams by mimicking emails from recognised brands and banks. E-signature scams and phishing attempts are on the rise, with fraudsters using spam e-mails and social media to get people to sign up for fake services. Be suspicious of an e-mail that asks you to provide your personal information, or a request to sign up for a service through an unexpected link. While it is not always easy to determine whether an e-signature is legitimate, it is important to be aware of the risks involved. Many businesses rely on e-signatures to protect their information, and it is crucial to be diligent in verifying the signature before completing an action. 
  1. Do not click on any link received from unknown sources/sender IDs: 

It's important to be careful when opening email attachments. Cybercriminals often use email to spread malware. Be wary of clicking on any unknown/unsolicited links received on the phone/email. Be cautious of unknown numbers seeking your account details. Don’t share your personal information like debit card details/PIN/ CVV/ OTP /Card Expiry Date/ UPI PIN, over the phone, mails or SMS to anyone, even if someone is presents themselves as a bank official. Your bank will never ask for such details from you.

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  1. Safeguarding sensitive information: Do not save confidential information such as your debit/ credit card numbers, CVV numbers or PIN on your mobile phone. If any banking application operates with sensitive data, ensure they are using reliable cybersecurity application shielding. Cybersecurity firms provide a range of offers for ID verification and authentication to protect the documents and get them electronically signed. Additionally, don’t install apps through untrusted providers because they can control your mobile phone remotely and it could result in a screen sharing fraud.
  1. Mobile malware detection and protection: Scammers often attack through loopholes from application developers who assume that the mobile operating systems and authorised app stores offer all required security measures to prevent concealed malware. Protect yourself by installing an effective anti-virus/ anti-spyware/personal firewall on your computer/mobile phone and updating it regularly. 
  1. The free Wi-Fi conundrum: Avoid using public Wi-Fi or free VPN/ public computers while accessing your Bank account: Weak passwords and flaws in public Wi-Fi are used by hackers to infect devices with malware. However, most mobile banking attacks happen through social engineering – when users are manipulated to give up their usernames and passwords to hackers, scammers and other cybercriminals. Constant vigilance around your banking habits is needed considering the fact that the fraudsters are always a step ahead in the ways in which they can siphon your money through a tool that you’re always connected with - your mobile phone.

Given the world that we now live in, and with all the digital communication that we so regularly engage in, mobile banking is and will be a natural part our lives. It’s a boon in the true sense, and the only things that come in the way of our ease of doing transactions are fraudsters. It’s important to remember that they are always a step or two ahead of us, and to avoid falling into their trap is to be vigilant at all times whenever we conduct a transaction. The onus lays upon those who conduct these transactions as well as the bank to employ cutting-edge security measures that can stop transactional banking fraud. A digital India needs to be a safe India, and to help achieve that, banks, more than consumers, need to have security measures that can thwart these financial crimes. 

The article has been written by Pinakin Dave, Country Manager – India and SAARC, OneSpan Inc

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