Boston, MA, October 24, 2007
– A new Impact Report from Aite Group, LLC investigates security vulnerabilities for mobile banking, both now and in the near future,
focusing on the methods that are being deployed to mitigate risk over this emerging channel.
Mobile banking is the first in a variety of mobile information and transaction services that will be
gradually cranked up over the next few years by financial institutions and mobile operators alike. The wireless networks are finally capable
of delivering broadband speeds over handsets, which now have computing power equivalent to personal computers of less than a decade ago.
It remains unclear, however, whether consumers will feel comfortable having bank information transmitted over their phones. While indications
are strong that customers will want this, there is a danger that the fears relating to security and personal privacy will ultimately jeopardize uptake.
According to the Aite Group report, titled "Mobile Banking Security: The Black Cloud Attached to the Silver Lining," the
same types of attacks that have plagued the online world will inevitably migrate to mobile. The lack of end-user education regarding potential
threats across mobile devices, combined with millions of transaction-enabled handsets and the global reach of the mobile Internet, ensure that
wide-scale criminal attacks over the mobile network are a certainty.
"Though there is nothing that can be done to stop attacks from happening once mobile devices become viable mechanisms for
financial transactions, banks must not shun offering mobile transaction services," says
Nick Holland, senior analyst at Aite Group
and author of this report. "The end-user will become savvy with time, and the channel will eventually develop mechanisms to
further aid the customer. The key is for banks to get started sooner rather than later, in order to accelerate the learning curve
and lessen exposure to mobile fraud when it does occur."
This 22-page Impact Report contains 5 Figures. Clients of Aite Group's Retail Banking service can download the report
by clicking on the icon to the right.
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