Question

“One of the biggest problems with electronic banking is security. Regardless of what type of security is in place for on-line banking sites or ATMs, people are able to obtain customer information. Through so-called phishing, where someone tries to trick a customer into revealing sensitive information or harming where malicious code is introduced into a computer, customers can become victims to identity theft.”

According to the statement given above:

Illustrate why security for electronic banking currently become the biggest problem in banking industry?

Answer 1

Security for electronic banking is currently becoming the biggest problem in the banking industry because all the customers are becoming highly sceptical with the vulnerability of online banking with getting exposed to theft of data and these can be used for various manipulative purposes as it is highly exposed to leakage of the personal data and it is also interpreted in respect to cloning the data and using the data of other persons for personal benefits.

There are various manipulators and frauds who are doing phising in order to obtain the data of personal nature and use this data for the personal advantage through cloning them and customising them for their respective purposes and individuals privacy is at high risk when he is entering into the online transactions which are banking transactions.

The growing number of cyber crimes in respect to internet banking has made the investors in the banking business very sceptical about the privacy of various consumers and they are also so getting highly sceptical about their investment into such industry which is not able to protect with the privacy as they are often entering into third party profitable agreements which are sharing the confidential data of customers and they are also trying to not provide with the adequate security to the personal data while these consumers are doing online transactions.

Hence, there is a need for optimum structure which should be put in the place in order to mitigate the risk associated with loss of the personal data of various customers and banks should be not entering into any kind of unethical agreements with third parties and they are also adopting with highly efficient communication channels with the customers and blockage of their personal debit cards if these data are continuously breached by another individual so it should also try to protect it through proper vigilance and high degree of encryption in order to protect the interest of various consumers and protect the privacy of these customers as well.