Online Banking Threats: Study, Trends, Impacts and Recommendations

This report covers the study of online banking threats, current trends, positive and negative impacts, and recommendations to overcome the issues. It includes multi-factor authentication, strong password and pin, anti-virus software system, and avoiding public Wi-Fi.

ONLINE BANKING
THREATS

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Study of online banking threats and its purpose to information preservation.................................3
Current trends in online banking..................................................................................................4
Positive and negative impacts of the online banking...................................................................5
Recommendation to overcome the issues....................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Online banking threat define as any malicious activity which cause major damage to
Bank which includes the credit, transaction, liquidity risk (Bolar and Alflayyeh, 2020). Poor
cyber security system lead to destruction as it gives the chance to the hacker also unauthorized
login on computer network can cause damage to banking system. This report will cover the area
of complete analysis of topic and its relevance to information security, current trends, positive,
negative impacts. It also includes the recommendation to overcome the issue.
MAIN BODY
Study of online banking threats and its purpose to information preservation
The threats are arisen because of various things due to which affects online banking
system, that are defined below;
1. Malware- In this affect's computer, networks etc. by which attacks software as
inetntionally. For online banks electronics safety as each time develops problems in
function of malware through the software of banks (Negi and et.al, 2021). It directly
attacks networks of banks through malware system which arise risk for banking system in
online mode by which users feel not safe towards by using this and creates risk for banks.
2. Unsecured data- It is a wireless connection that creates without accessing password in
online banking of cyber. That reserved data on computers in financial management. By
online banking develops threats because of unsecured data of unecrypted data leads to
attack by hackers. Who hack all information regarding accounts balance or any other
things which develop serious issue for organization. From this all data are not safe as end
to end, becomes threats for banking who uses as online.
3. Mocking- A new threat that arise in online banking is this, where cyberpunks find
direction or path. By which they can hack website of banks and pose URL that
functioning same as original (Ly and Ly, 2021). In which hackers stored all information
by gathering and used it later when they find right time by spoofing of new techniques
and misuse data of bank. Due to this creates threats in online banking and effect system
of banking through online mode.

By these they get idea of what are the threats for online banking, and they can easily preserve
information regarding banking of financial institution. It helps them to enhance their security
from various ways, reduces risk for organization etc. This will get them in improvising all things
by analysis of threats through which information get preserved in better way. So, they keep
computer updated on regular basis that not give a chance to hackers to hack cyber's security and
bank information in any circumstances. Which is essential part for banking system in order to
save their information from problem that impact or badly effect online banking. Today's people
are using online banking most of it, that is why is necessary to keep safe their account and bank
from risks and problems that may arise in each time.
Current trends in online banking
Adaptation of “as a service” platform:
As similar to the software as a service which is being used by the business so that they
can serve better services to their customer. Therefore, banks are also using “bank as a service” as
a digital platform which is designed to serve better services to their customers in anticipating
digital era.
Cyber security to mitigate the risk:
As increase in digitalization it also increases the risk of attack, malicious activity.
Therefore, banking system must have to implement the strong cyber security to prevent from any
kind of malicious activities whose main aim is to steal the useful financial information. Bank can
also proceed to use two-step verification to protect the data from the hackers.
Move forward for better accessing to the finance:
As people across the world consider cash transaction therefore they are at the verge of
experience any kind of attack from the hacker. This can lead them to loss in their money, loss in
financial or personal information. Therefore, banking system are moving to adopt cashless
banking services through which they are enabling the customer to use credit for the secure
payment option (Nohumba, Nyambuya and Nyambuya, 2020).
Use of IOT technology:
IOT “internet of thing” technology defines as the connection between electronic devices
such as sensors, smart phones, computer etc. online Banking system is also implementing this
technology that will provide their customer compatibility with their system. This technology can
alert the customer by sending notification on their smart phone if their account is accessed by

any unauthorized person therefore it saves the customer from any loss. It is defined as affiliation
among devices such as smart watches, system of computer etc (Khan and et.al, 2021). Banks
using this current trend through platform of digital that attracts customers towards their services
which they offered and increase their productivity, it is benefits for them. In these consist of
advising customers when account of their will penetrate by unexpected devices.
Positive and negative impacts of the online banking
Positive impacts are as follows:Easily access to 24/7 banking services:
Positive aspect of the online banking is that it provide 24/7 access it just requires a strong
internet connection. Some banks also provides whole day mobile access to real life client service.
This is very beneficial when person does not have strong connection or if they want to connect
with assistance instead of computer algorithm.Online payment of bill:
It is one of the most important aspect of online banking as it enables the customer to pay
bill, online transaction from their smart phone by sitting at their home. Instead of filling forms
person need to directly connect their accounts with online banking system then on the one click
they will able to pay any bills or can made any transaction.Speed and accuracy:
If a person need rapid transaction or to send money on urgent basis then this online
banking system will come to rescue otherwise in traditional system person was not able to do any
kind of payment on urgent basis (Manoharan and et.al 2021). Online banking provide speed and
accuracy through which person can easily access to their account or can request for new credits.
Negative impacts are as follows:Issues in technology:
As technology advancement plays an important role but what if there is no internet
connection in a particular zone so it will cause the problem. It can be understood as an example
if a person have to made urgent transaction and the internet servers are down in such case it is
network failure, and they don't able to make sudden transaction.Security issues:

Security is the major issue in online banking it sometimes seen as a lost in financial asset
for the person. Sometimes it is hard to feel comfortable with the banks who are lacking in their
physical appearance particularly when there is large amount of cash is involved. What if the
website suddenly shut down there will be a threat to lost of money or can be attack by the hacker.
Therefore, security is the major issue for the online banking system.Lack of connectivity with personal banker:
It is the another negative impact as personal relationship with the banker can play a
important role while issuing the loan, or new credit therefore all this process can be processed
fast is a person have a connection with the bank otherwise they might have to wait for a long
time.
Recommendation to overcome the issuesMulti factor authentication:
Multi factor authentication enables the person to give two or more verification before accessing
to any application or software, online account. Once the identity is properly checked then the
person is able to access the particular application. This technology is required to implement in
online banking system so that there will be no chance of any malicious activity.Strong password and pin:
Online banking system will need to provide better security in term of pin generation and
setting of the password. They need to use a strong technology which gives different combination
of letters, numbers so that user can create a strong password which is only known to them.
Banking system also need to provide updates in password so that user can update their password
to secure from any kind of issues.Try to use anti-virus software system:
As to protect from any kind of malicious activity as phishing, malware online banking
system need to implement the anti-virus software system which can provide help to detect the
spyware or to provide methods to remove the spyware so that there is no threat of lost of any
information (Rossi and et.al 2021).Do not use public Wi-Fi:
The major disadvantage of using Public Wi-Fi is that hacker can become a intermediate
between the network and can take a whole information. Therefore, to protect from this Online

banking need to provide a better option to their customer to use VPN as it gives the secure way
on the network.
So, these are the recommendation which can online bank can implement to resolve all
their issues.
CONCLUSION
The report has been based on online threats of banking that arisen through various
sources that will described in this. By study of threats of it, their current trends, impact on
organization through both aspects of positive and negative with examples that seen in online
banking. It will justify by study on risks that has been occurred in business of banking through
different medium of channels which developed threats for banking. Also, has been summarizes
of recommendation to conquered from risk or problems. From this understanding has been takes
place and get an idea to overcome threats through several points of it.

REFERENCES
Books and Journals
Bolar, D.K. and Alflayyeh, D.S., 2020. Information Integrity, Security and Online Banking
Utility. International Journal of Management. 11(9).
Khan, I.U. and et.al, 2021. Exploring the effects of culture on acceptance of online banking: A
comparative study of Pakistan and Turkey by using the extended UTAUT model. Journal
of Internet Commerce. pp.1-34.
Ly, B. and Ly, R., 2021. Cybersecurity in unmanned aerial vehicles (UAVs). Journal of Cyber
Security Technology. 5(2). pp.120-137.
Manoharan, S. and et.al 2021. To click or not to click the link: the factors influencing internet
banking users’ intention in responding to phishing emails. Information & Computer
Security.
Negi, C. and et.al, 2021. A Review and Case Study on Android Malware: Threat Model, Attacks,
Techniques and Tools. Journal of Cyber Security and Mobility. pp.231-260.
Nohumba, I., Nyambuya, C. and Nyambuya, G., 2020. Integrating offline and online platforms
for seamless banking experience. Journal of Management & Administration. 2020(1).
pp.45-72.
Rossi, F.D. and et.al 2021. E-Banking Security: Threats, Challenges, Solutions, and Trends.
In Research Anthology on Concepts, Applications, and Challenges of FinTech (pp. 385-
397). IGI Global.
OnlineOnline Banking Threats, 2021. [online]. Accessed through
<https://blog.trendmicro.com/trendlabs-security-intelligence/curious-case-dridexs-prevalence/>.