Secure Electronic Banking: Threats and Solutions
Atul Bamrara, Shalini Kala · ASBM Journal of Management · 2009
IntroductionIn today's era of rapid growth, Information technology is encompassing all areas of life all over the world. These technological developments have made the transition from paper to paperless transactions possible. We are now creating new vistas of speed, efficiency, and accuracy in communication, which has become key tools for boost up innovations, creativity and increasing overall productivity. Computers are extensively used to store confidential data of political, social, economic or personal nature bringing immense benefit to the society as well as the organizations.Various banks have been exploring different ways to maximise their profits and innovative methods to reach their consumers. With the increase in the popularity of the internet, the banks are using the computer networks as potential tool for multiplying their profits and directly reaching their consumer base. The use of computer networks and internet in the online transactions of funds and procedures between customers and bank is all electronic banking. ATMs, e-cash, credit cards, smart cards, electronic cheques, electronic wallets etc might not be supposed without introducing electronic banking.The rapid development of Internet and Computer technology globally has led to the growth of new forms of transnational crime especially Internet related. These crimes have virtually no boundaries and may affect any country across the globe. Thus, there is a need for awareness and enactment of necessary legislation in all countries for the prevention of computer related crime.With the growing use of internet by a variety of users, security and protection of computer systems and networks has become a matter of prime concern. A safe electronic banking should not only protect from misuse of data but destruction of data should also be checked. Experts, now-a-days, are of the view that security aspect must be taken into consideration initially, in order to establish a electronic banking system.Globally Internet and Computer based commerce and communications cut across territorial boundaries, thereby creating a new realm of human activity and undermining the feasibility and legitimacy of applying laws based on geographic boundaries.Security Issue'Once a new technology rolls over you, if you are not the part of steamroller, you're the part of the road. - Stewart BrandDr. David Chaum, CEO of DigiCash said that Security is simply the protection of interests. People want to protect their own money and bank their own exposure. The role of government is to maintain the integrity of and confidence in the whole system. With electronic cash, just as with papercash today, it will be the responsibility of government to protect against systemic risk. This is a serious role that cannot be left to the micro-economic interests of commercial organizations.The security of information may be one of the biggest concerns to the Banking Industry. Electronic banking users, who most likely connect to the Internet via dial-up modem, are faced with a smaller risk of someone breaking into their computers. Only organisations such as banks with dedicated Internet connections face the risk of someone from the Internet gaining unauthorised access to their computer or network. However, the electronic banking system users still face the security risks with unauthorised access into their banking accounts. Moreover, the electronic banking system users also concern about non-repudiability which requires a reliable identification of both the sender and the receiver of on-line transactions. Non-secure electronic transaction can be altered to change the apparent sender. Therefore, it is extremely important to build in nonrepudiability which means that the identity of both the sender and the receiver can be attested to by a trusted third party who holds the identity certificates.AttacksAttackers' motivations vary greatly. Some of the most notorious hackers today are high school kids in their basements planted in front of their computers looking for ways to exploit computer systems. …