Is Mobile Banking Safe?

In this modern World, advancement in technology is making it possible to exchange of information everywhere. People are now more dependent on modern devices such as computers, cellular phone, e-mail and internet. This increase of dependency has made the real time exchange of information a reality. One of these information exchange service is known as Mobile Banking. It is the facility whereby the mobile phone holder can perform banking transaction by using their mobile phones.

In Mobile Banking, customer send a text message through mobile phone which travel through the server of the phone service provider to bank’s internet service. Here information is retrieved and routed back in the same way within few seconds. Client has to fill up a form at bank’s branches to avail the service. Bank informs the cellular service provider to activate the mobile banking service for certain user. Although this is a useful service but there are many disadvantages of this service.


Security is the main threat in mobile banking. There is a mobile banking scam known as "smishing". In this scam mobile banking user receives a text message sent by hacker. This text message asks about bank account details. When mobile banking user send its banking account details, the hacker access users bank account by using this information sent by mobile banking user and make transactions on his behalf.

Virus and Trojans are another security threats in mobile banking. Many viruses and Trojans have been found in mobile phones which stole any kind of information from your mobile to any unauthorized person or hacker. The hacker can use this information and access bank account of the mobile banking user.

Every day thousands of mobile users lost their mobiles. These mobiles contains passwords and PIN codes. Specially mobile banking applications require to enter a password. Often people save their passwords on mobile phones. When the mobile lost all this data came into access of unauthorized person who can use these information in any way. Many people not know about, how to set passwords and use insecure passwords and PIN codes. These passwords can easily be guessed and tracked through advance password tracing software.

Some banks do not provide mobile banking services while some provide a limited area services. Which means that we can not use this service everywhere it is a big draw back of this service. To use advanced features of mobile banking you need a custom mobile banking application which is only available on costly smartphones. If you have no smartphone, you can not avail these services and can only check bank account balance by using text messages.

Mobile banking is not a free to use service, if you avail this service then bank charge you. If you have no smartphone and are not using advance features of mobile banking, still you need to pay for text messaging fees. Software which are used in mobile banking are not free of cost.

Due to these security issues and other disadvantages most people are not willing to use mobile banking services.