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Cyber Insurance : Mobile Banking Is On the Rise – Now Is the Time to Buy It

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Banks have finally made the shift from brick and mortar to online platforms. With them modifying their processes and user experience to suit the needs of a more technologically-driven world, internet banking, more specifically mobile banking, has now become the new norm.

However, cyber-attacks have been increasing as well. Let us explore how cyber crimes that are targeted to mobile banking users are on the rise and how you can protect yourself:

The rise of mobile banking

Mobile banking refers to banking transactions being carried out with a smart device – mobile, tablet – and over the internet. Over the last decade, India has witnessed an exponential rise in the number of smartphone users in the country. Therefore, it is no surprise that mobile banking has gained currency with time, and is now a prevalent and reliable banking tool.

Currently, most reputed banks have on offer dedicated mobile banking applications that one can easily download from App Store (for iOS) and Play Store (for Android OS). Mobile banking is today used for various everyday functions such as payment of bills, transferring funds between accounts, and the likes.

Cyber risks associated with mobile banking

The popularity of mobile banking has made it susceptible to cyber-attacks, with web threats no longer being restricted to computers or laptops. Cyber crime experts believe that attackers may largely sidestep internet banking attacks and direct their transgressions at mobile banking applications.

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Mobile banking risks are identical to those of internet banking. Violators resort to smishing (phishing through SMS) and third-party apps to breach personal and banking details that one might have saved on his smartphone.

While app stores serve as an excellent marketplace for launching applications, the distribution model of most is open to every app developer. Their free policies and relaxed regulations encourage potential attackers to distribute malware. Such malware is planted for ulterior motives like stealing users’ banking information, automatically subscribing to premium services that can then be charged, installing spyware, and the likes.

Another potential risk is the threat posed by spurious and unauthentic applications. Cyber criminals use fake apps, disguised as genuine, to gain the trust of unsuspecting users. Through forgery and falsification of the app icon, images, logo, and content, web criminals attempt to imitate a real banking application to access sensitive information.

Need for cyber insurance

The adage ‘prevention is better than cure’ still holds. From adopting safe mobile banking practices to being aware of common cyber frauds, mobile banking users must give priority to cyber security to reduce the possibility of a mishap.

That being said, mobile banking users can never be completely insulated from cyber risks and other kinds of fraud. Therefore, you must be adequately prepared in advance and equipped to deal with the menace that are cyber-attacks.

A comprehensive cyber insurance policy is one of the reliable risk management tools to financially safeguard mobile banking users against a slew of threats. These include identity theft, email spoofing, phishing, IT theft-related losses, malware attacks, cyber-stalking, social media liability, and cyber extortion. Importantly, you can tailor the sum insured to your unique needs, and pay an affordable premium to enjoy extensive coverage from a host of cyber-attacks.

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What makes such a policy all the more important is that you can also avail counselling services should you be under duress as a result of a cyber-attack. You also get cover from the expenses that you incur on an IT consultant to prove the extent and amount of losses.

In Conclusion

With the increasing market penetration of mobile banking, cyber attackers today are evolving their techniques to monitor everyday activities you conduct over your smartphone. Therefore, in a world where an increasing number of transactions are being carried out through a device, only at the touch of a finger, cyber insurance has become a proven risk-mitigating tool.

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