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Emerging Challenges and Security Issues in e-Banking

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World is connected with internet very rapidly and fast in a millisecond people interact with each other and so as the money is also changing very rapidly and now a day’s funds get transfer from one account to another account within few seconds with the help of e-banking . E-Banking and mobile banking provide the facility to bank customer to access their accounts from any were in the world. the services which are based on electronic system specially in banking sector increasing day by day it’s become mandatory and for providing such services its necessary to keep information on network and secured so the data and details of customer i.e account holder should consider as private and confidential. Data on the network cannot be access by the hackers at any cost. the information on network should only be accessed by authorized users so that the customer’s faith in the bank must maintain and customer loyalty and faith gives bank a great value. In this paper, some new challenges of e-banking and security issues are discussed.

INTRODUCTION: Banking is considering for safety of money as well as quality of services to customers it provide safety and guarantee of funds that no theft has stolen your money from bank if it happen than whole amount is given back by bank it also provide facility to run their business smoothly and fearlessly. One of the service that bank provide are electronic fund transfer (EFT ) and electronic data interchange (EDI) which were invented in the late 1970s and these technologies allows enterprises, organizations  etc., to send commercial documents like purchase orders or invoices electronically then faster growth and acceptance of credit cards ,Automated Teller Machines (ATM) and telephone banking in the 1980s are also important forms of electronic banking .online shopping was invented by ,and  Michel Aldrich in the UK in 1979. General motors, Ford and Nissan in 1980 used Aldrich system this system used the swithed public telephone network in dail up and leased line modes. there is no broadband capability  after 1990 electronic bank included Enterprise Resource Planning systems (ERP),data mining and data ware housing .(www) world wide web was intend by Tim Berners –lee in 1990 after that in 1994 online shopping get started and payment thru e banking made successful in the year 2000 American and European organizations offered their services through the world wide web they used internet and secure protocols and electronic payment services need security on online transactions as hackers attempted to hack the password as well as control on the site. So researches as developers are continuously do hard work for designing new algorithms for security purpose. e-banking includes activities like payment of bills and invoices, transfer of funds between accounts, applying for a loan, payment of loan installments, sending funds to third parties via emails or internet connections regardless of where the client is located. In India, Internet banking both as a medium of delivery of banking services and as a strategic tool for business development, has gained wide acceptance internationally and is fast catching up with more and more banks entering the fray. Initially, some of the banks permit customers to interact with them and transact electronically with them. Such services include request for opening of accounts, requisition for cheque books, stop payment of cheques, viewing and printing statements of accounts, movement of funds between accounts within the same bank, querying on status of requests, instructions for opening of Letters of Credit and Bank Guarantees etc.

Security of e banking as well as mobile banking is very important issue as the bank must have security defenses like encryption, authorization, confidentiality, integrity, firewall etc., are already a part of bank security system based on network which secures the data and information being transmitted from one system to another computer system .some attacks like script attack, input validation attacks, DNS attack, Eavesdrops, etc .,threatens the security of e banking. Some type of attacks that generally notice by researcher are passive attack , traffic analysis attack ,passive eaves dropping  attack , active attacks on wireless network, unauthorized access ,denial of service ,replay ,session hijacking ,man in middle attack ,rogue access point etc.

Banking is undergoing speedy changes world-wide and India is no omission. The financial sector reforms aimed at deregulation, liberalization and globalization of Indian banking have altered the entire scenario of Indian banking. Added to this is the IT revolution which has entirely affected the way of responsibility on banking business and has considerably widened the range of products offered by banks. Electronic banking plays a vital role in the economic development of a country. Due to immense advances of information and communication technology (ICT), it certainly introduced new scope for the global E-banking community. As India is taking giant leaps towards globalization, Internet banking is the sector to be studied with great interest. In India, the leading private sector bank and the eminent banking service providers, i.e. ICICI Bank Limited, changed its online banking service in 1996, followed by a host of other banks viz. HDFC, Axis, Citibank, Federal Bank, etc. Now, all the banks in India have either totally implemented ‘Core Banking Systems’ or halfway through.

LITRATURE REVIEW: Arne Floh and Horst Treiblmaier (2006) investigate the importance of antecedents of online loyalty such as trust, quality of the web site, quality of the service and overall satisfaction. Rather than investigating which factors drive customers to use online banking instead of offline banking, it addresses the problem of how to keep customers online and loyal to a specific supplier. Infogile Technologies (2007) in their case study paper describes the basic concepts, services offered, market survey and technology which enables mobile banking. Over the last few years, the mobile and wireless market has been one of the fastest growing markets in the world and it is still growing at a rapid pace. This opens up huge markets for financial institutions interested in offering value added services. Malhotra and Singh (2007) carried out a study to find the internet banking (i-banking) adoption by the banks in India. The study suggests that larger banks or banks with younger age, private ownership and lower branch intensity possess high probability of adoption of this new technology. Rajesh Kumar Srivastava (2007) conducted a study on usage of internet banking in Mumbai. The research is focused on what are the customer’s perceptions about internet banking and what are the drivers that drive consumers. How consumers have accepted internet banking and how to improve the usage rate were the focus of research area in this study. The research corroborated the conceptual framework stating that if skills can be upgraded there will be greater will to use internet banking by consumers. Kamakodi, N., (2008) an Executive Director of India’s oldest private sector bank ‘City Union Bank Limited’, Kumbakonam, Tamil Nadu, in an article highlighted that banks like ICICI in India used technology as a ‘competitive advantage’, and successfully became the largest private sector bank in India within five years of commencing operations. ATMs, cell phone banking, anywhere anytime banking and internet banking are the most popular services, which have come to the market, and all banks are competing with ICICI bank to offer these services. Ahasanul Haque et al. (2009) in their research paper dealt with the perception of Malaysian online customers on internet banking. This study shows that only protected transaction, have significant impact on consumers’ perception about e-banking security, followed by service quality and regulatory frame work issues. Shripad Vaidya (2009), a banking specialist from the Banking Domain Group of Tata Consultancy Services (TCS), in a paper discusses a case for comprehensive utilization in line with the global trends of adopting a completely evolved Internet Banking channel. This paper also gives a glimpse on how some of the leading banks and financial institutions across the globe make effective use of the Internet Banking channel to garner impressive results. Based on the observation, it is concluded that most of banks across the globe predominantly use Internet Banking channel for cost reduction or revenue growth; whereas very few banks seem to adopt this channel comprehensively, and that is true even for some of the banks with direct platform. Rahmath Safeena, Hema Date and Abdullah Kammani (2011) carried out a study on internet banking adoption in an emerging economy. This study determines the factors influencing the consumer’s adoption of internet banking in India and hence investigates the influence of perceived usefulness, perceived ease of use and perceived risk on use of internet banking. It is an essential part of a bank’s strategy formulation process in an emerging economy like India.

SECURITY ISSUES IN E-BANKING: (Florentina, 1999)Security breaches basically fall into three categories; (a )breaches with serious criminal intent (fraud, theft of commercially sensitive or financial information), (b) breaches by ‘casual hackers’ (defacement of web sites or ‘denial of service’ - causing web sites to crash), and flaws in,
(c) Systems design and/or set up leading to security breaches (genuine users seeing / being able to transact on other users’ accounts). All of these threats have potentially serious financial, legal and reputational implications.

Many banks are finding that their systems are being probed for weaknesses hundreds of times a day but damage/losses arising from security breaches have so far tended to be minor. However some banks could develop more sensitive "burglar alarms", so that they are better aware of the nature and frequency of unsuccessful attempts to break into their system. The most sensitive computer systems, such as those used for high value payments or those storing highly confidential information, tend to be the most comprehensively secured. One could therefore imply that the greater the potential loss to a bank.

PHISHERS: Phishes are targeting the customers of banks and online payment services. E-mails, supposedly from the Internal Revenue Service, have been used to glean sensitive data from U.S. taxpayers. While the first such examples were sent indiscriminately in the expectation that some would be received by customers of a given bank or service, recent research has shown that phishes may in principle be able to determine which banks potential victims use, and target bogus e-mails accordingly. Social networking sites are now a prime target of phishing, since the personal details in such sites can be used in identity theft.

RECOMMENDATIONS: Banks need to develop a strategic approach for updated information security and make their network stronger so customers have strong faith on electronic banking system as well as traditional banking system. 
Bank s has to keep a proactive information security system management to get updated information and a fast response to new threats and active testing of system security controls from the hackers.
Banks should provide the card service and mobile banking services as their top most priority followed that they utilized by the electronic clearing services by their customers
the frequency of usage about the e-banking services such as ATM, Cards, mobile  Banking placed in first, second position respectively. Even though in IT era, customers feels that ‘Human contact is necessary’. This was proved by 98.9 per cent of respondents by visiting branch counter. The demand of e-banking services also going up it can convert them in other services further.

CONCLUSION: Customers are very comfortable and willing to use e-banking channels. At the same time, some customer utilized the branch counter. It implies that ‘human contact is necessary’ in accumulation to e-channels. It shows a challenge to banks as well as security issues need to be strong to build faith among customers   Technology alone cannot give a sustainable competitive advantage for the banks. When all banks introduce IT in their technology, IT will lose its place as a differentiator. Ahead of a point, IT along with ‘personal touch’ will be essential for the banks to maintain the existing customers and be a focus for new customers. Banks have to incorporate this in their IT and operational strategy. The normal Indian’s growing demand for personalized, speedy and cost-effective services is approaching banks to innovate further. 

1.    Arne Floh and Horst Treiblmaier (2006), What Keeps the e-Banking Customer Loyal? A Multi Group Analysis of the Moderating Role of Consumer Characteristic on E-Loyalty in the Financial Service Industry, Journal of Electronic Commerce Research, Vol.7, No.2, pp.97-110.

2.    White Paper Overview on Mobile Banking – The Future, Infogile Technologies Pvt. Ltd., Aug. 2007.

3.    Malhotra, P. and B. Singh (2007), Determinants of Internet Banking Adoption by Banks in India”, Internet Research, Vol. 17, No. 3, pp.323–339.

4.    Rajesh Kumar Srivastava (2007), Customer’s Perception on Usage of Internet Banking. Innovative Marketing, Vol.3, Issue 4, pp.67-73.

5.    Kamakodi, N. and Basheer Ahmed Khan (2008}, Looking Beyond Technology: A Study of E-Banking Channel Acceptance by Indian Customers. International Journal of Electronic Banking, Vol.1, No.1, p.75.

6.    Ahasanul Haque, Arun Kumar Tarofder, Sabbir Rahman, and Md. Abdur Raquib (2009), Electronic Transaction of Internet Banking and its Perception of Malaysian Online Customers African Journal of Business Management, Vol.3 (6), pp. 248-259

7.    Shripad Vaidya (2009), Internet Banking Channel, a Case for Comprehensive Usage – A Retail / Consumer Banking View. Tata Consultancy Services Limited, pp.1-14

8.    Rahmath Safeena, Hema Date and Abdullah Kammani (2011), Internet Banking Adoption in Emerging Economy: Indian Consumer’s Perspective. International Arab Journal of e-Technology, Vol.2, No.1, pp.56-64

9.    Ramalingam, m. S. (2012), Utilization of e-banking services by the customers of icici bank limited, International Journal of Research in Computer Application & Management , (volume no. 2), issue no. 6 (june)pp 146-152.

10.    Suspicious e-Mails and Identity Theft, Internal Revenue Service, Archived from the original on 2011-01-31 Retrieved July 5, 2006 on internet accessed on 4th Feb 2013

11.    Phishing for Clues, Indiana University Bloomington, September 15, 2005 accessed on 4th Feb 2013

12.    Kirk, Jeremy (June 2, 2006). Phishing Scam Takes Aim at MySpace.com. IDG Network accessed on 4th Feb 2013

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