Overcome Security Threats Affecting Mobile Financial Solutions 2020

Overcome Security Threats Affecting Mobile Financial Solutions 2020

November 4, 2019
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The financial services industry, like most businesses and consumers, has become dependent on mobile communications as a way to conduct business, manage customer information, exchange data, and work with customers. Due to its convenience, speed and ease, the electronic form of money has gained tremendous popularity among ordinary people and businesses.

We have also witnessed that Mobile Payment is the Future of Money Transaction and the emergence of mobile financial solution such as mobile payment system and digital wallet solution with the growing proliferation of smartphones around the world. People are moving rapidly from using cards to digital wallets to make payments at different locations.

There are few critics, however, who think that digital wallet is not a secure payment system for both consumers and service providers. Wallets such as Google Pay, Venmo, and Samsung Pay, however, serve as the best examples of a secure digital wallet that used around the world. However, we cannot completely ignore the risks to security that it may pose. In addition, if you are looking for a Best Digital Wallet App Development Company to hire and its solution, this blog is best for you.

In this blog, we are going to discuss the various security threats that digital wallet may face and what the solution might be.

Mobile Security Threats Explained

People tend to see mobile security threats as a threat that includes everything. But the fact is, you need to be mindful of various types of mobile security risks. These include physical threats based on software, web-based, network-based threats.

Here is How They Work:

  • Application-Based Threats

Application-based threats occur when people download apps from their phone that look legit but simply skim information. Types include spyware and malware that exploits personal and business data without people realizing what is happening.

  • Web-based threat

There are subtle web-based risks that appear to go unnoticed. They occur when people visit affected sites that appear to be fine on the front end but actually download malicious content to devices automatically.

  • Network-based threats

Network-based threats are particularly bad because cyber criminals are able to steal unencrypted data while using public WiFi networks.

  • Physical threats

Physical threats happen when somebody loses or has stolen their mobile device. Since hackers have direct access to the equipment, where private data is stored and access to data, this vulnerability poses a particular threat to companies.

Mobile Wallet Application under Major Potential Threat

  • Phishing Attacks

Phishing attacks are probably the most common type of attack. The phishing emails perform these. Such attacks have primarily aimed at forcing the client to disclose information.

  • Social Engineering

The attackers steal data from the client in social engineering that is available in the public domain. They either use it for illegal transactions or sell it to trade websites in the underground. The attackers sometimes use the stolen information as their identity as well.

That is how they get access to user’s info for Mobile Wallet Payment.

  • Installing Malware Applications By Mistake

Attackers make the user download malware using malicious attachments to redirect it to the mischievous URL, fake access point, insecure Wi-Fi hotspots, and a spoofing attack network.

  • Some of The Possible Security Measures
  • For digital wallet transactions, refrain from using public Wi-Fi hotspots.
  • Educate and sensitize people about risks to safety.
  • Distinguish between fake websites and actual access points.

Taking Care of Mobile Device Issues

  • Mobile Device as a Target

Mobile devices are more vulnerable to malware attacks because they are an easier target than the mobile app. Once the system is in their hands, they can use it for illegal activities such as spyware deployment, use of sensitive data, fraud transaction, and much more.

  • Implementation Issue

IT is a competitive field where you will see the constant release of new functionalities. Consequently, there is a possibility of running potentially unstable codes that are highly susceptible to security threats when mobile payment solution is being introduced.

  • Illegal Access to Lost Or Stolen Device

If your cell phone is lost or stolen then it is easy for the hackers to have unauthorized access to all the data contained in the system. They can also steal the information on fingerprints that can be used in a fraudulent transaction’s authentication process.

  • Possible Security Measures
  • Keep up to date the operating system.
  • Ensure the security checks on your computer done by default.
  • Keep the PINs and the PIN lock tight.
  • Keep biometric data tight.

Some of the Mobile Wallet Application Concerns

  • Reverse Engineering

Reverse engineering lets hackers target data such as encryption keys and passwords that are hardcoded. Hackers who have a high level of understanding of the digital wallet solution can only do that.

  • Tampering With The App And Using The Rootkits

The intruder could pick a loophole for login details to be accessed. They can send it to the server managed by the attackers after the details have been collected. This helps attackers to upload or access any kind of information from the request for mobile payment.

  • Possible Security Measures
  • Use the tools to adopt secure coding practices together with automated and secure review manual.
  • Adopt protection for source code integrity and anti-debug security.
  • Cryptography of the White Box
  • Safe software distribution through trusted application stores
  • Use all unauthorized software stores to detect and remove rogue applications.

Merchants’ Threats

  • Uploading malware on POS

Once the malware downloaded and mounted on the contactless terminal point of sale (POS), the attacker can use the card readers to customize and steal transaction and payment information. The attackers can gain insecure remote desktop access to the POS servers through POS malware. In addition, the malware also affects the encryption, thus increasing the probability of paying for fraud.

  • Man-in-the-middle attacks against POS and POS servers

Attackers may also benefit from vulnerabilities like the absence of firewalls. It helps hackers to make full use of the protection of the network.

  • Relay attacks on NFC enabled POS

Any known attack on the interface of the NFC POS is called the relay attack. The relay software installed on the mobile is capable of relaying responses and commands between the mobile POS card emulator installed as a proxy and a secure element.

  • Possible Security Measures
  • POS software should be up to date
  • Limit POS and POI access only to licensed users
  • Configure firewalls and install firewalls properly
  • Make use of SSL to the point of contact between POI and POS
  • Modify the POS system’s default password

Read more – Cost to Develop Peer-to-Peer Mobile Application

Threats Associated With Payment Service Providers

  • Compromise of Running S/W On Contactless Terminals

Payment service providers offer various mobile payment POS services such as POS terminals operated by NFC and aggregated retailer payment services. The latter processes online payments, contactless payments, and face-to-face payments from various channels.

  • Compromising Payment Gateways

PSP payment gateways offer themselves as an interesting target for all those hackers who constantly seek to compromise the payment information and send it to all the acquiring banks from the merchants.

  • Compromise of S/W on POS servers

Attackers that look at attacking the payment gateway to break the security of POS terminals. The PSPs provide these terminals to the merchants to host their network.

  • Compromise of Data Connectivity

Attacker can attempt to take advantage of unsafe connections while merchant hosts the POS link to PSP. There is also a risk to the PSP connection to the acquirer.

  • Possible Security Measures
  • In POI, patch S / W vulnerabilities.
  • Protect it with a standard design.
  • Perform testing of vulnerability.
  • Patch terminals S / W, H / W, and POI.
  • Impose safe point-to-point ties between the PSP and the acquirers and the PSP and the POS.

Threats Associated With Acquirers

  • Compromise of payment processing systems

Attackers may get a massive amount of cardholder information while the issuer payment network asks for the cryptogram and the token.

  • Malware installation for advanced persistent threats (APT)

Backdoor malware deployment followed by remote access tools (RAT) by database malware infection that is hosted on the acquired network enables attackers to compromise the acquirer bank payment processing servers.

  • Repudiating the authority of mobile payment

Rootkits are a major threat as attackers can use them to track and exploit API calls directly.

  • Possible Security Measures
  • Impose and implement advanced standard security measures together with user access encryption of the second factor.
  • Enforce and safe minimum user access privileges.
  • Deploy prevention of fraud, detection of malware and leakage of data.
  • For protect internal point-to-point connections, using SSL / mutual authentication.
  • Make digital signatures mandatory for payment authorization from the verification issuer.

KEY TAKEAWAY

The security of customer information is the most important asset in the financial services industry, as in many sectors, so finding mobile security an afterthought is disconcerting. Mobile devices are facing many risks, but you can do a lot to protect yourself, your information and your employees.

The aim is to educate workers and provide them with the tools and information they need to make the right choices. The safer yours and their data will be, the more they understand what is at risk. Follow these instructions and, through your mobile security journey, you will be well on your way to protect yourself.

Moreover, if you are looking for a Mobile Wallet App Development Company for ready-made digital wallet solution, then we have you covered there as well. Simply contact Fusion Informatics to know more about our next gen digital wallet solution.

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