Banking security and the customer convenience conundrum

November 7, 2017 — Banking security and the customer convenience conundrum

Ryan Wilk, VP at NuData, writes this guest article for about the tension between banking security and customer convenience.

Security and convenience are two things nobody in the banking sector can escape, and the constant pull and push of tension make for a significant challenge for financial organizations in balancing the two. Adding accessibility so customers can do their banking business anytime/anywhere with new devices is adding yet another layer of complexity.

With almost 5 billion people estimated to be using mobile phones globally, the banking sector is embracing the mobile option wholeheartedly (there’s your convenience), but the industry is also beginning to understand the additional security required to make this convenience a reality.

While mobile banking applications have become a must-have for customers, it has also become a new attack vector for cybercriminals. This new avenue of the financial industry opens up opportunities for hackers to exploit vulnerabilities though customer-facing applications including authorization, identification and authentication. Banks often make the mistake of simply using a one or two-stage authentication process, which is easily accessed using relatively simple cybersecurity tactics (and not helped by the customer’s proclivity to re-use passwords across multiple accounts). Institutions need to incorporate various layers of positive consumer validation utilizing layered technologies that include automation and anomaly detection, multi-factor authentication, passive biometrics and behavioral analytics, so that the true customer can be identified, and the imposter detected before they can access critical account functions.

For the complete article, go here.