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Impacts Of Security Risks On Internet Bank Information Technology Essay

Internet bank is a system in which customers can view their bill details, settle payments and copy money through internet and also get the facts of products and services being provided by banks.

Role on internet bank is vital in the development of economy. Because of the vast expansion of internet in every sectors, the banking sector is also getting the advantages of internet and Banking institutions are moving from traditional business deal system to the digital and online deal system.

There are lot of benefits including time keeping and cost decrease in this way that customers can get gain access to their accounts in couple of seconds through internet of their personal computers, laptop computers even cell phones that have internet enables connection. They no more need to go in a lenders and stand on long queue for expenses payment, money transfer to other persons or getting information about their accounts. Infact internet banking has changed the life span of people and they're getting benefits from this service.

On the other hand, there may be very serious concern, which is arising now a days for internet banking that is security hazards. In every day news you must have listened that more recently hackers are doing cyber offense by stealing an incredible number of pounds from banking companies through internet banking. This serious security hazard is very hazardous online bank and need to conquer with the proper planning.

Problem Assertion:

With the growth of internet bank, there are great deal of security threats include: (hacking, infections, grooming, phishing, spam etc) are arising. For preventing these threats, we need to take on them by making improvements in security options.

Literature Review:

This is the age of information technology. By using it, every sector of market is growing. Bank sector is also one of them in which banking institutions have made great deal of improvements in facilities for their customers. Internet banking is one of these. Internet bank has made individuals life easy. Customers are no any longer need to stand on queue for charges repayment and money transfer and then for other banking facilities like products and services being offered by the lender and any regulations and any insurance policy change by the lender etc. Customers can simply access the web site of the lender through internet and can avail the lot of internet banking facilities.

"[The evolution of electronic bank started from the use of automatic teller machines (ATM) and has handed through telephone bank, direct bill repayment, electronic fund copy and the revolutionary online bank (Alter, 2002). The future of electronic banking matching to some is the popularity of WAP enabled bank and interactive-TV bank (Petrus & Nelson, 2006). Nonetheless it has been forecasted that among all the categories, online bank is the continuing future of electronic financial deals. The go up in the e-commerce and the utilization of internet in its facilitation combined with the increased online security of orders and sensitive information has been the center reasons for the penetration of online bank in everyday routine (Documents4you. com, 2006). Based on the latest official information from the Office of National Figures (ONS, 2006) point out that subscriptions to the internet has grown more than 50% from 15 million in 2000 to 35 million in 2005 in the UK. It has also been predicted that 60% of the population in the UK use internet in their daily lives.

The fundamental transfer towards the involvement of the client in the financial service provision with the help of technology especially internet has helped in keep your charges down of finance institutions as well as helped client to make use of the service at anytime and from practically anywhere with access to an internet connection]".

Got from: http://www. articlesbase. com/finance-articles/ebanking-online-banking-and-its-role-in-todays-society-40435. html#ixzz12R16EPwe

"[Internet banking (or E-banking) means any end user with a personal computer and a internet browser can get connected to his bank's website to execute the virtual bank functions. In internet banking system the bank has a centralized databases that is web-enabled. All of the services that the bank has permitted on the internet are viewed in menu. Any service can be determined and further discussion is dictated by the type of service]". Got from: http://www. scribd. com/doc/29385455/Internet-Banking

The contribution of internet bank in the progress of banking sector can't be disregarded. But beside this development. There are great deal of security threats to the internet bank which needs to eradicate.

Security Threats to Internet Bank:

"[The threat from internet fraudsters is continuously evolving. The ultimate way to tackle these threats is to ensure you are always alert to them and exactly how they work]".

Got from: http://www. halifax. co. uk/SecurityandPrivacy/security-centre-home/common-threats/

Following are the common security threats to internet bank:

Phishing and pharming:

"[Phishing is an activity utilized by fraudsters to obtain hypersensitive information such as usernames, passwords and bank card details by pretending to be an email or concept from a trusted organisation. Marketing communications proclaiming to be from finance institutions, popular interpersonal websites and public sale sites are commonly used to trick the unsuspecting people.

Phishing is usually completed by email or instant messaging and frequently directs users to go into details at a fake website which appears almost similar to the real one, however some phishing scams have the ability to create pop-ups that appear whilst you are utilizing a banking site]". Got from: http://www. halifax. co. uk/SecurityandPrivacy/security-centre-home/common-threats/phishing/

"[Phishing is a fraud where hackers 'fish' for your personal details by using hoax e-mail proclaiming to be from financial institutions. This method continues to be favoured by online thieves]".

Hoax emails proclaiming to be from finance institutions are often produced overseas and are sent in bulk. The e-mail asks the receiver to provide sensitive information such as their username, security password, customer registration quantity or PIN by giving a link leading to a fake website, permitting thieves to assemble the facts for later fraudulent use]". Received from: http://www. anz. com/personal/ways-bank/internet-banking/protect-banking/security-threats/

"[Phishing (also called spoofing) is the take action of fraudulently acquiring delicate information from a user, such as passwords and visa or mastercard details, by masquerading as a trusted person or business with real need for such information in a relatively official digital notification or message.

The e-mail directs an individual to visit an online site where they are asked to update personal information such as their bank card number, password and bank-account amount, details that the respectable company already has.

Another version of fraudulent invasion is pharming. Here, rather than setting up an identical website, the DNS server software is exploited and the hacker acquires the domain name of a niche site and redirects traffic from that site to another site. (The DNS server is the one which converts the web site name into an IP address. The IP address is the initial set of numbers that identifies a site on the internet. ) All of those other mechanism is similar to phishing]". Received from: http://www. scribd. com/doc/7182221/Internet-Threats

"[Malware is malicious software that is created by fraudsters and criminals to infiltrate computer systems. Normally it takes many varieties and can be used for a big number of against the law purposes such as stealing personal information, deleting or corrupting data, creating botnets (networks of infected computer systems) and bypassing security software.


There are extensive types of malware. Most popular types are infections, trojans, spyware and scareware]". Acquired from: http://www. halifax. co. uk/SecurityandPrivacy/security-centre-home/common-threats/malware/?pagetabs=0.

The above montioned are a few of the security threats to the internet banking and there are very harmful for the internet banking not only for lenders but its customers as well. Because fraudsters are indulge in these heinus legal activities for the purpose of robbery of money. They make an effort to adopt different type of scams/ steps and make an effort to access the private of the customers of banking institutions. They use different kind of software like Malware such as infections, trojans and spy ware etc. they also make an effort to get personal banking information of customers through phishing and pharming.


"[A method is "a means or manner of procedure, a normal and systematic way of completing something. An orderly and systematic arrangement. Procedures corresponding to an in depth, logically bought plan. "

Tools that are used to gather data or data (survey, interview, participant observation).

Methodology: A set of methods you will adopt to deal with the situation or situation.

The technique will also feature about the examination methodology too.

Is much more than just saying your methods and techniques

Why you have chosen a certain method over another.

Professional issues and ethics in data collection

Problems that you foresee and exactly how you are to conquer these

Replicate the methodology.

Maintain a kind of labbook - what, why, how, results from which you can write-up the methodology]". Got from: university lectures Slides: EFFECTIVE RESEARCH & PROFESSIONAL PRACTICE - 1011 (CMI3416-1011) > MODULE MATERIALS > SEPTOCT2010 > Thursday night, research Methods lecture.

For conducting my research I will use qualitative research method.

Definition of Qualitative Research: Acquired from university or college lectures Slides: "EFFECTIVE RESEARCH & PROFESSIONAL PRACTICE - 1011 (CMI3416-1011) > MODULE MATERIALS > SEPTOCT2010 > Thursday night" research methods lecture.

"[Qualitative research is an activity of enquiry that pulls data from the context in which situations occur, so that they can illustrate these occurrences, as a means of determining the procedure in which happenings are inlayed and the perspectives of these participating in the incidents, using induction to derive possible explanations predicated on noticed phenomena]". (Gorman & Clayton, 1997).

I use the techniques of questionnaire from the clients of the specific bank. And will ask the questions regarding internet banking. And I also meet the managers of Information Systems office so you can get information regarding security dangers to online banking and will ask that what preventive measures they took to remove the security challenges being encountered by the finance institutions through internet banking and I am going to also get related information and issues from internet through different websites.

Limitation of my research is that the Information systems director of a particular bank may won't share some important info regarding security hazards by saying that this is banks private and I cant provide you such information.

Professional and honest issues of my research include: I'll need to be alert to the plagiarism, paraphrasing, and referencing, copyright, and need to give proper acknowledgement to the contributors of the study.

At the end I'll give my recommendations that the particular ways and methods that will lead to eliminate the security dangers and exactly what will be the advancements need in the internet bank software for overcome the security threats.

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