Cyber-criminals and identity thieves will turn their attention
to mobile banking and payment initiatives during 2007, experts
warned today.
TowerGroup noted that, while most mobile phones are potential
targets, smartphones and wireless PDAs are "particularly
attractive" to fraudsters given their capabilities to support
PC-like applications including web browsing and instant
messaging.
The analyst firm believes that mobile commerce initiatives now
emerging from the financial services industry "lack a reasonable
and justifiable focus" on mobile security.
"The success of mobile banking and payments, as well as the concept
of the mobile wallet, will be measured against the industry's
ability to effectively contain the malware problems to a level that
is at least on par with that of the existing internet channel,"
said Bob Egan, chief analyst at TowerGroup and author of the
research.
"Over 200 mobile viruses have already been identified, a number
that is doubling nearly every six months.
"Now is the time for IT managers and line of business heads within
institutions to take action to protect their companies and
customers from mobile malware."
TowerGroup
estimates that employees at 80 per cent of US financial
institutions are already using smartphones, including BlackBerrys,
in a mix of professional and personal capacities.
As the mobile channel continues its rapid growth, the complexities
surrounding security, including identity theft, consumer privacy
and fraud, are increasing exponentially.
TowerGroup recommends that financial services CIOs and IT managers
take the following steps to protect against virus attacks on mobile
devices and the infiltration of these viruses into institutional
computer networks and databases:
-Create enforceable policies regarding mobile usage that are
communicated to employees, including what type of mobile downloads
are safe and allowable
-Require wireless carriers serving an institution on an enterprise
level to install and monitor mobile safeguards
-Restrict the use of personal mobile phones that can be used for
corporate activities, mirroring the security and protocols now in
place for PCs
-Evaluate which combinations of network-based and device-based
security solutions represent the right fit for the institution, and
prioritise their deployment
"IT managers must examine extending their existing malware and
virus security initiatives to include mobile phones," added
Egan.
"Likewise, the mobile commerce industry beyond financial services
players must step up to take more aggressive and immediate action
to circumvent the potential of fraud and theft.
"We are currently in the lull before the storm. To ensure that the
mobile banking and payments channel will ultimately thrive, there
is no time to waste in getting ahead of the malware
challenge."