Fraud: The Latest Threats

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What are the top emerging fraud threats to banking institutions via mobile banking, and how must security leaders respond? Julie McNelley of the Aite Group offers tips for fighting the newest threats.

By 2014, Aite Group estimates 44 million consumers will be using some form of mobile banking. And as more institutions roll out mobile banking and payments, more consumers will jump on the mobile bandwagon, making mobile banking an increasingly inviting target for fraudsters, McNelley says.

As a result, McNelley says in an interview, banks need to take steps now to protect their mobile channels in preparation for the explosive growth ahead. One crucial step, she says, involves monitoring cross-channel fraud patterns that link online and mobile banking. Another important step, she says, is to ensure developers anticipate potential risks before mobile services and platforms are launched.

Too many banks are waiting to see what kinds of threats develop before investing in technologies to mitigate mobile risks, McNelley says. "People are going to have to be more proactive; you can't be taking a wait-and-see approach." Read more.