Mar 26, 2013
South Dakota/ London - ATMIA today announced the publication of a new best practice manual for preventing mobile banking fraud, with special reference to applications linked to ATM systems.
Due to the increasing popularity of mobile phones, and in particular smartphones and tablet computers which are capable of full internet access, mobile banking and related mobile commerce has become an important channel for the financial services industry, including the ATM industry.
Mobile device interactions with an ATM can include:
· Cashing out transactions initiated on a mobile device.
· Alerting consumers to transactions performed at an ATM.
· Receiving an electronic receipt for a transaction performed at an ATM.
· Providing a one-time password (OTP) to authorize an ATM transaction by replacing the traditional card and PIN used to perform an ATM transaction.
“In a time when the ATM can be used to complete transactions begun on a mobile phone, and as cardless ATM transactions gradually replace ones initiated by plastic cards, it is important to check out any security vulnerabilities associated with mobile phone banking applications,” explained Mike Lee, CEO of ATMIA. “This manual, expertly edited and drafted by Douglas Russell, with crucial inputs from Susan Matt and members of our Security Council, examines those vulnerabilities and makes recommendations which could reduce risks of future compromise.” The manual also aims to increase understanding of the relationship between the mobile and ATM channels.
“Downloadable apps for smartphones and some tablet computers are creating new, more sophisticated interactions between the mobile device and the consumer’s bank accounts, so we fully expect mobile banking to grow significantly,” Lee concluded. “We urge customers to take the same care with their phones as they do with their cards and cash. In addition, financial services providers should increase customer education in this area.”
Re-disseminated by The Asian Banker