Online Banking Report

This report provides a comprehensive analysis of online banking, examining its ethical, legal, and social implications. It begins by introducing online banking and its benefits, then delves into the key ethical, legal, and social issues faced by both banks and customers. These issues include security breaches, privacy concerns, data protection, and the accessibility challenges for certain demographics. The report further assesses these issues from the perspective of an IT professional, suggesting methods for evaluation and improvement. Different perspectives on online banking are presented, highlighting both positive and negative arguments from various stakeholders. The report also outlines ethical principles and codes of conduct relevant to online banking, covering corporate payments, power of attorney agreements, information flow, and customer relations. Finally, it explores the technological vulnerabilities and limitations of online banking systems, including external threats like Trojan attacks and internal vulnerabilities such as employee sabotage. The report concludes by summarizing the key findings and emphasizing the importance of addressing these issues to ensure the secure and responsible development of online banking.

ONLINE BANKING

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK1.............................................................................................................................................3
TASK2.............................................................................................................................................5
TASK3.............................................................................................................................................6
TASK4.............................................................................................................................................8
TASK5...........................................................................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Online banking is the system where the banking activities can be performed by the
customers through internet sitting at any corner of the world, it can also be said as the internet
banking or web banking. The process or the method by which the banking transactions can be
carried out electronically on the internet. Now a days the banks are providing the services of
online banking as because it become very helpful for both the firm and the customers (Yee-
Loong Chong and et.al., 2010). The people can do their banking transaction at home or any place
with out visiting the respective banks. The idea of online banking has emerged by the
programmers who use to work upon the banking data base.
TASK1
Ethical, legal and social issues of online banking.
There are positive and negative aspect of every particular thing the online banking is also
on of the highly executed activity that now a days the banking sectors are performing and the
customers are also taking keen interest in the innovative ideas of online banking. But there are
certain issues that the customers and the organisation faces while executing the online banking
system. The issues that the bankers faces are as follows-
 Security issues- The biggest problem that the banker faces is the fraudulent act that is
been carried by many of the hackers. The fear that always exist is of the account get
hacked. There are unethical hacker who use to hack the accounts of the people and then
misuse them and using the money as they want to.
 Necessity of the internet- The need of the internet is must to carry out the online banking
activity, the person who wants to do transactions through online banking with out internet
he can not do any of the operations related to the banking (Yap and et.al., 2010.).
 Customer care services- Many a times the customers need help of the people of the bank
to carry out the online banking but the proper guidance sometimes the customers does not
able to avail.
These were the basic issues that the bankers face by online banking there are major issues that
the system of online banking creates are as follows-
1. Ethical issues- Ethical issues are the problems or the situation where the organisation
of banking sector has to choose the better option between the right and wrong. Basically it is the

standard or the level where the organisation or an individual has to choose the what is right and
what is wrong for him or for the operations of the organisation. Ethical issue that get created are
totally based on the nature and the behaviour of the owing authority of the organisation. The
ethical issues that are as follows-
 Privacy breach- The personal data of the customers have to be very carefully kept
in the main data base of the organisation (Yaghoubi and Bahmani., 2010). The
ethical aspect defines that the banking sectors should always safe guard the data
of the consumers related to the organisation. The wrong minded people some
times misuse the concept and customers get suffered by them.
 Accuracy- The banking as well as the customers both have the responsibility in
this aspects because there are situations where the banking operations does not
carried out properly, and the customers misinterpret the situation. Its his duty to
convey the problem to the bank.
 Security breach- The problem that the consumer faces while using the online
banking systems like the personal, confidential and the sensitive data of the
people are stolen and are used in unethical way. It is not necessary that the higher
authority are aware of the illegal activities are going in the organisation, these are
done by the people with wrong objectives.
2. Social Issues- These are the issues that is to be considered in the favour of the society.
It is very must that the organisation should avail whatever the society is in the need of, all the
responsibility that the firm has towards the society must be fulfilled. There are chances where the
situation of conflict get arises between the people of the society and the banking organisations.
 It is very necessary for the organisation to provide the best services related to the online
banking. The services must be on the time and also satisfy the customers, when ever the
problems does not get solved of the customers then they some or the other way definitely
affect the bank's image and the service quality (Yoon., 2010.).
 The customer's personal details and privacy & security aspects are the most important
fact that the organisation has to focus on. They have the responsibility to keep the data
safe and secure.

 There are many old age people and many are those who need special care, they are the
one for whom the banking organisation has to focus much and try to fulfil all the
requirements and needs in special attentive manner.
3. Legal issues- There are many issues related to the legislation that the customers should
have certain rights related to the online banking. There are many acts that the law defines in the
rights of the customers who are operating in the online banking systems.
 Data Protection Act 1998- This act was formulated by the Government of United
Kingdom which defines that the data of the customers in the banking has to be processed
in certain form (Honore Petnji Yaya and et.al., 2011.).
 Computer Misuse Act 1990- In this act the government said that the things like,
unauthorised access of the computer, supplying the internal sources and the data to the
external people or computer system then the activities are concerned in the computer
misuse offences.
 Human rights Act 1998- This act helps the customers in defending the individual's right
in case any problem of the customers does not treated well then they can file a case in the
UK court.
TASK2
Assessment and evaluation of the key aspects of the issues relevant to an IT professional.
There are many such aspects which help in knowing and evaluating the issues that are
related to the IT professionals.
Professional issues-
The organisations employees back stab and the data of the customers are stolen by them, they
misuse it and the organisation has to face many such problems in the future as because at the end
the firm is liable to bear all the problematic situations. They also share those information to the
people outside the organisation and supports those who unethically use the information and the
data of the customers. The professionals does not fulfil their roles and the responsibilities that
they have be asked for as according to their profile in the organisation (Aderonke., 2010.). The
unethical aspects many times followed by the people of the firm creates the situation worse to be
get handled. There are some steps that the organisation can follow to assess the issues that are
related to the IT professionals-

 IT administration and management- This step will help the organisation in assessing the
areas of the firm like IT plans, staffs, projects, budgets and the rules and the regulation
that the firm has to carry out in the operations.
 IT user satisfaction survey- In this the organisation will do a survey in the market as a
research related to all the IT issues that the public is facing. By the survey the
organisation will be able to know the requirements of the customers and the area where
the organisation's employees has to work more effectively to attain the positive feedback
by the customers (Zahid, Mujtaba and Riaz., 2010).
 Cellular survey- In this step the organisation can carry out the survey regarding the
question related to the IT issues that the customers might face and the organisation feels
to improve in the upcoming by the telephonic or cellular systems. Here the customers are
asked to provide some beneficial suggestions and the recommendations related to the
services of the IT professionals.
 Audio social equipment and resources- The organisation with the help of the audio and
the visual technologies can be able to evaluate how the customers are consuming the
technology and how the IT professionals are proving the resources to the customers. The
use of the technology and how they are managed can be can be determined by the
organisation. With its help the organisation can also be able to understand the
improvement areas that has to be done as soon as possible.
 Social media- Social media is the platform where the organisation can be able to assess
the performances and the result and the feedback of the customers. With this the
customers can provide informations and the suggestions through which the organisation
can improve the current problematic areas. It act as a support system to the organisation
as because this help in the quick analysis and assessment of the related issues (Wu and
Dash Wu., 2010).
 IT security- In this stage the organisation tests the systems and the network devices. The
staff of the organisation are trained and assessed for certain criteria as to improve the
performance and the services as well as it helps in the security risk minimisation.
TASK3
Different perspectives of arguments given by people on online banking.

Every aspect is not always treated equally all the people do not think the same way, the
thoughts, view and the ideas are very different from each other. Similarly the online banking has
its positive and negative both the aspects. They are as follows-
Positive arguments by several people
According to Rajaobelina., (2013) Online banking is very suitable to operate and the payments
system can be effectively done through this. He also said that the people of the society are so
addicted to this system that all the bills are now paid online. The creditors also allow automated
recurring payments so that the customer can pay the money on time and they can also save the
penalties that if not paid on time be charged. The transactions has to effectively use the system
and the time can also be reduced in the transactions of the banking. He also added that the online
banking has changes the whole banking scenario and it influenced the economic growth of the
nation as well.
According to Gikandi and Bloor., (2010.) online banking is an easy tool than different sites of
the interactions. The people who does not have awareness about the internet can also be able to
handle the transactions of the online banking with just few clicks. He said that the customer are
very happy to have such system in the banking which also helped them to resolve the problems
what ever arises in the online banking. There are many banks who are offering 24*7 customer
care services through telephone or electronic mails.
One of the stake holder of the banking organisation said that the services are very convenient and
they also provide mobile friendly websites which helps the consumers to efficiently use the
banking activities. The organisations are implementing more and more better apps in the online
banking systems. It is helping the customer like us to use and promote the online system of
banking to those who are not aware about this. The customers are very much satisfied with this
because they do no need to line up in the bank to carry out certain banking transactions, they can
operate them on mobile or personal computers when ever they want to with out any problem, the
only thing that is required is the internet.
Negative arguments by people
According to Nupur., (2010) the online banking system has motivated the criminals to commit
various unethical activities, the author says that the system has created many problem to the
customers as because in online banking the customers has to provide all the details of them to the
banking organisation but many a times the data that are given to them does not kept in safe

manner and they are misused by others and those who are not having ethical knowledge and
motives. Now a day the growth of the hackers are in very high range many are working for the
positive aspects but there are many who does not want to use the hacking knowledge in an
effective and creative manner, hence they are using it for wrong purposes. These hackers with
several techniques use to hack the bank's database where the number of the information of the
clients are saved. All the details of the personal, sensitive and also the details of the money that
they have in their accounts. They use them as a tool to black mail and also they take out the
funds of the people from their accounts.
According to Alsajjan and Dennis., (2010) many times the customers also faces issues in the
transactions of the money if there are some technical issues in the main computer system through
which the organisation's whole network is operated. The money can not be deposited by online
banking system the money cab be transferred but the one which we have in our hand can not be
deposited. There are several banking transactions that can not be performed online this the the
drawback that the online banking system has.
TASK4
Ethical principles and codes of conduct in online banking.
1) General rules that the organisation has to follow for the employees and bank
 The actions should be integrity, clearly, openly and respectfully to each other and the
responsibility have to be fulfilled by the organisation that it has towards the society and
its people.
 The online banking system of the organisation has to be carried out a considering the
objectives as the principles. There should not be biased situation. amongst the customers
in the services.
 The laws and the regulations related to the organisation must be followed by each and
every individual of the firm, and they have to keep them as their priority to follow. They
shall not carry out the administrative and financial transactions and they should not also
advice to create an environment which are against the rules and the regulation of the
organisation. The norms can not be violated by any of the individual of the firm. The
employees has the responsibility to make the environment of the bank in an effective and
presentable manner and they have to keep all the resources of the bank and the related
things of the online banking safe and secured.

 The ethical principles of the banking organisation defines that the employees should not
share any of the information about the customers at any cost to the third person, the one
who does not have the connection with the organisation and its operations (Jassal and
Sehgal., 2013). The information if someone wants then it must be clearly defined and
written proof should be there then only the organisation and its people can share the
information to the related person that is also done with lots of requests. No one prom the
employees can use the information and the data of the customers for their own use.
 The rules and there principles that the organisation has set must be instructed to the
employees of the organisation on daily basis so that no one could misuse the things and
unethical act does not take place in the organisation.
 The activities that are to be performed in the organisation can be properly aided with
these ethical principles.
 All the resources of the banking organisations must be very carefully and efficiently
handled so that the wastage of the resources can be reduced and the productivity of the
operations get enhanced.
 As the online banking is provided to the customers therefore the organisation must
consider the customer's satisfaction level and also make sure that they are getting proper
guidance about the system that they are using.
 All the responsibilities and the liabilities that lies upon every individual must be known to
all so no mistake can be executed by any of the manpower working in the banking sector.
2) Corporate payments and political donations
As the code of conduct of the organisation defines that the banking organisation should
not entertain any of the government and political people as because the organisation's main
objective is to treat every individual the same, all are equal for the firm. The organisation does
not promote the act of donations that the political parties does (BV., 2013 ). The bank does not
even take part in the political party meets as well.
3) Power of attorney agreements with the customers.
The ethical principal and the code of conduct of the banking organisation says that the
employees can not represent the customer or the power of attorney for the customers. The
employees also can be a presenter of the customers account.
4) Rules and the regulations of the flow of the information

According to the banking law the information that the organisation has of the employees
are very confidential and it has to be kept a secret asset of the firms as because the employees are
the one by whom the organisation is able to carry out their operations. Therefore all the related
information and the data of the customers have to be secured appropriately. The employees of
the organisation are very much responsible for the safety and and protection of the information
of all the consumers (Koenig-Lewis, Palmer and Moll., 2010.). The employees can share a
limited set of the information to the people as declared in the laws and the norms of the
organisation, beyond the limit the employees can not share the data other strict actions are taken
against them who found to be doing the unethical work within the organisation.
5) Relations between employees and customers.
The code of conduct and the ethical principles of the organisation majorly focuses on the
effectiveness of the operations and the services that the firm is providing to the customers. The
quality of the services that are provided by the organisation to the customers are the factor that
attract the new prospects. It is very necessary for the banking sector to resolve the problems of
the customer whenever it arises as the online banking is carried out it happens that the customers
face difficulties in operating the activities and the applications might be new for them to
understand. The services that if availed to the customers in effective manner then it will create
the image of the firm in a positive manner (Yoon., 2010). And this way the relationship between
the customer can be created.
TASK5
Limits and vulnerabilities of technologies and applications in online banking system
There are many ways through which the organisation's online banking process can be
harmed they are as follows-
External vulnerability of the technologies and the applications
1. Trojan attack- These situation takes place when the user unwillingly access the sites and
downloads the programs, a key logger get into the system of the user and get downloaded
in it and when the user will operates the functions related to the banking then the attacker
will come to know all the details of the users.
2. Guessing the passwords- Here the hacker uses the strategy of guessing the passwords
through certain software and try to get into the new network of the users account.

3. Sniffers- This is the software through which the id and the password of the user can be
captured.
4. Worms- This are the kind of program that use to replicate itself when ever it gets a new
safe environment.
5. Logic bombs- these are the destructive programs which are specifically designed to
destroy the actions of the banking operations for certain time (Gikandi and Bloor., 2010).
Internal vulnerability of technologies and the applications used.
1. Fraud and theft- These are the attacking system where the computer systems are misused
to perform the fraud act. It is not very easy to rectify the fraudulent act that has been
carried out by the attackers.
2. Errors and omissions- The integrity of the data and the systems are threatened due to
various errors. There are many situation where the computers lack in the detecting of the
correct errors and the omissions.
3. Back doors- It is basically a password that is only known by the attackers. This allow the
attackers to access the system of the user very easily and they don't even face any kind of
the problem in the security system of the user.
4. Employee sabotage- This act is carried out by the unsatisfied employees of the
organisation to affect the operations of the firm.
CONCLUSION
In this we have concluded that importance of the online banking in the current era and the
organisation's services to the customers, we have discussed about the ethical, social and legal
issues of the online banking systems (Yap and et.al., 2010). The assessment and the evaluation
methodology of the issues has also been described in detail. There are many authors , experts and
stakeholders who have their opinions upon the online banking system in the favour as well as
many have opposed to the system. The organisation's code of conduct and the ethical principles
of the organisation has also concluded in this assignment. The vulnerabilities and the limits of
the technologies and the applications used in the online banking has also described.

REFERENCES
Books and Journals
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