Trust & Security issues in Mobile banking and its effect on Customers

Abstract: Context: The invention of mobile phones makes the human life easier. The purpose of this study is to identify security risks in mobile banking and to provide an authentication method for mobile banking transaction by using bio-metric mechanism. Objectives: Current mobile banking authentication is challenging and identified as a major security risk. Literature review shows that customer distrusts mobile banking due to security issues. The authors discuss security risks in current authentication methods in mobile banking. Methods: There are different methods and approaches to handle authentication in mobile banking. In this thesis, we propose a new approach of authentication in mobile banking. The strengths and weaknesses of existing approaches of authentication are identified with the help of Literature Review and interviews. The authors present basic transaction model and include security risks. By Literature Review it is found that finger print mechanism is a suitable method for authentication. Authors focus on authentication method and present a biometric scanning device which can identify the customer’s finger print thus enabling the customer to access mobile banking facility. Results: An authentication model is proposed through design process. The proposed biometric design was validated by conducting a workshop. The analysis of the workshop’s results showed that customer’s trust in security for mobile banking will be increased by finger print mechanism. To promote mobile banking, it is necessary to improve customer trust in terms of security. Conclusions: The authors concluded that, only authorized person will be able to use mobile banking services by incorporating bio-metric finger-print mechanism. By literature review and interview it was found that finger-print mechanism is more suitable than other ordinary mechanisms like login and password mechanism, SMS etc.