According to experts, the primary and most significant threat that awaits any Internet banking user is the risk of fraudulent hacking and unauthorized access to funds on the account. The only considerable danger for the users is the risk of unlawful distrain of their funds by intruders using Internet banking systems’ capabilities.
Banks are trying to use various systems and mechanisms designed, if not to guarantee, to increase the safety of using online banking. Along with other industries, the banking sector also aims to adopt modern approaches and integrate digital technologies into its operation routines. This is where digital transformation in the banking industry assists financial institutions in responding to market needs promptly.
Data encryption
Analysts point out that ransomware remains the most prevalent cyber threat. Almost half of the attacks using such programs in 2020 were carried out by the Maze malware. Cybercriminals demand a ransom and steal confidential or compromising information before encrypting it to blackmail the victim further.
Thus, in 2020, more than 1,000 companies became victims of information leakage after attacks using ransomware. This trend will only intensify next year, displacing data encryption. Attackers adapt rapidly to changing IT environments, while organizations and service providers face enormous challenges. Looking into 2021, we expect it to continue being one of the digital banking trends of disruption and innovation.
One-time passwords from an ATM
In addition to a usual login and password, to enter the system and confirm transactions, the user must enter a one-time password received from the ATM of his bank. Such an approach has an advantage – to make transactions via Internet banking, a person must at least have the card itself and know the PIN code to get a password.
At the same time, several disadvantages of such a protection system cannot be ignored. Firstly, you will have to keep the list of passwords printed in the form of a check from an ATM to confirm future transactions. This means that if you accidentally lose or throw away a check (or use all password attempts), you will have to go for a new one.
If your Internet banking system uses a list of one-time passwords, try to follow simple rules. First, do not throw away the password list and, if possible, try not to lose it. Secondly, do not store the list of one-time passwords along with the login and password for your account. The latter is not at all recommended to write down, and it is better to remember.
One-time SMS passwords
This method of user authentication in the Internet banking system is perhaps the most common. Every operation you perform with online banking must be confirmed with a one-time password received in an SMS to your mobile phone. In this case, your mobile number must be “tied” to the account number.
It is quite difficult for attackers to get hold of a one-time password that expires in a short time unless they got hold of your smartphone with saved passwords in your browser.
Digital Signature
The advantage of the digital signature is that it allows you to identify the user. The disadvantage is that DS can also be vulnerable to fraudsters. Attackers can get to the key from your digital signature by infecting your computer with malicious software. Some Trojans can find and steal authentication data (identifiers, passwords, and even digital signatures) to access various services (including servers for remote servicing of bank customers).
If you use a digital signature to confirm your financial transactions via the Internet, do not forget to run antivirus scans regularly.
External electronic devices
Some banks offer online banking users to purchase (or rent) a particular device – a one-time password generator. The generator is connected to a computer via a USB port and does not require any special software.
Other institutions offer to use an external electronic key generated when connecting to the Internet banking system for the first time. It is recorded on an external medium and then used when conducting transactions in the system. Such systems are, in fact, a simplified version of a digital signature. Among their shortcomings, one can highlight that you cannot access your account without having a “key,” and it may not be very convenient and safe to carry it with you at all times.
In addition to the above, banks often use additional measures to ensure the safe use of Internet banking:
- Limiting the use of a personal certificate – some banks’ system allows using an electronic key (electronic certificate) only on the computer on which it was generated. Thus, you can only make payments via Internet banking from your personal computer (although you can view account statements on other devices as well);
- Virtual keyboard – designed to prevent fraudsters from “reading” your registration data when entering them from a regular keyboard using computer viruses (“Trojans”);
- Limiting the duration of the session – in case of user inactivity, the session in the Internet banking system after a specific time (usually 10-15 minutes) will be closed. After that, to resume work, you will need to re-authenticate;
- Connection history – the Internet banking user, will find out if someone has connected to the system and will also be able to track all unauthorized operations if any.
