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Literature Review of E-Banking



This section is the books review; the goal of this section is to investigate past publications by different writers. This includes books, articles and online magazines that could enlightened the visitors more on the region of banking and internet security methods, the typical and coverage used for internet bank security in britain and moreover, the synergistic impact of online bank and information security in the UK bank sector.

Since the invention of information technology and the internet, folks of different calibre are employing it to enhance the services effectively and effectively. Within the retail bank sector, most of the firms have moved majority of their physical business deal processes to online transfer process. A good example of this, I own an account with the HSBC loan company for over 4years now and I cannot remember the last time I proceeded to go into my branch to transact business. The majority of my bill payment and exchanges are done through my online banking. . . . . . . )

Irrespective of this, Lassar et al. (2005) also affirmed that finance institutions can forecast and work out how such technology will be employed by customers.

Banks and Finance institutions rely upon mainly on IT for their each day activities; which means Information received by financial company is not used only by the company and their workers but also by their customers and stake holders and companions. The users who rely on these services anticipate constant probability of direct access to organizational information (McAnally, et al 2000).

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The growing trend of e bank transfer has really signalled issues on information security that are to be mentioned and stringently looked after. To understand this security maintained, it must be a combined work and relationship between your customers and the financial institutions. (Re-structure the aforementioned paragraph) In general, "e-banking is thought as the robotic delivery of new and traditional bank products and services directly to customers through electric, interactive communication programs. E-banking includes the systems that permit financial institution customers, individuals or businesses, to access accounts, transact business, or obtain information on financial products and services via a general public or private network, like the Internet which can be an crucial part of e-banking". (FFIEC handbook, 2006). This new development as substantially changed the phase of online business in the United Kingdom and it is a welcome occurrence.


For a relatively good years now, internet bank levels have been carried out to become more fficient approach through which the banking ventures are made with no o leave your place of abode or your place of work. Some of the customers have been ecognised to turn to internet banking consequently of frustrations with standard tandard of procedure and tactics. Anand, (2008) said further that while some ustomers want human interaction in transaction, some of them turned to the internet acilities for security reasons. Associated with that the client are given assurance that heir deals are safe and secured and almost all of these transactions are created via the nternet explorer interface. In its article in '09 2009 (what report?. This is not Harvard standard of referencing), he said online bankinghas increased. 25% of all people who responded as regards to the most preferred way to loan company. Mobile bankinghas not started by any means. Only 1% of the individuals make purchase via mobile. The amount below shows how they stand:

  • Online banking: 25%
  • Branches: 21%
  • ATM: 17%
  • Mail: 9%
  • Telephone: 4%
  • Mobile: 1%
  • Unknown: 23%


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He went ahead and said more people visit the lender branch than using the online banking. The term internet banking may then be known as the utilization of internet as a remote way to do banking services. These services consist of the conventional ways such as consideration opening or cash copy to different accounts and new banking services like repayments online that is customers' agreement to receive and settle payments on their website.

Having grasped the significant importance of IT and e bank and amount of dangers and threats entail in driving the business process, therefore there is need for regular continuation of security in business, which results in the understanding of Information security. It really is a continuing process. "Information security, is the procedure of guarding information and information system from unauthorised gain access to, use, disclosure, disruption, changes, damage or bombardment, it consists of confidentiality, integrity and availability of various data regardless of the form the data needs. E. g. electronic digital, printing, written verbal or in virtually any other forms". (ISACA and CISA Review Manual, 2006).


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An SUMMARY OF Online Bank Environment in UK

An increasing competitions among the financial institutions have forced many of the competitors to offer similar prices on deposits and loans, your time and effort for getting competitive advantage were shifted towards no priced-factors (Akinci et. al 2004). customers and financial institutes have noted the recent revolution in UK retail banking. The transformation from traditional bank to internet banking has been effective (kolodinsky and Hogarth, 2001). Even though some researchers have bated that online banking has not resided up to expectation e. g Sarel and Marmorstein (2003) and Wang et al. (2003), a tons of studies still say that internet banking continues to be the most wealthiest and profitable means to transact business(Mos, 1998;Sheshunoff, 2000). Online banking has come to stay no doubt about this and financial institutions are prepared to proceed with it. Luxman (1999) for example expected that in the nearest future that the value of internet banking will be felt most especially in the distant areas where some bans have shut their branches Going by the review completed for alliance and Leicester by (VOBS survey, 2004), 2, 395 UK individuals were interviewed, more that half of them now loan company online. 61 percent now used it more than the previous couple of years. However, visiting the baking hall is very much indeed favored by respondents preferring to visit banking and offer face to face with the bank staff for activities like paying cheques 73 percent, 20 percent withdraw cash over-the-counter and 20 percent will lodge using one claims or the other.

Mike Warriner (2008). said in a recent article from Forrester mentioned that only 31% of British isles adults loan company online despite 75% regularly shopping online - to offer Benjamin Ensor, principal analyst at Forrester Research, "By international requirements, the U. K. can be an online banking laggard. " He then goes on to say that "The U. K. also has a relatively large numbers of quitters, with about two million people stating that they used to utilize online banking but have abandoned".


According to a study carried out by Darrell R. (2009) "Medium size organizations all over the world are very much concerned about cyber threats. The amount of incidents reported really justifies their questions. On the close of middle 2009, McAfee found out a new malware as they does in 2008 which could cause a whole lot of havoc in the internet world. . Irrespective of this discovery; most organizations still minimize their IT security budget rather than increasing it. A threat up budget down, McAfee called it "security paradox".

Ron C. (2009) records that a lot of companies in the UK are lagging behind the rest of the world in information security management practices, according to a fresh research from PriceWaterhouseCoopers.

7, 000 security experts around the globe was surveyed, mainly in large companies comprising 455 in the U. K. The study found out that British organisation emerges to be less ready to fight the risks that deal with them in their information systems.

The stand below shows that U. K. lags in quite a few key regions of information security. Organisations have less CISOs in place; only 37% have an obvious idea of where their data is stored. Then, practically half (49%) have no idea the amount of security occurrences they experienced in the preceding calendar year.


Transactions online help customers with the competence to perform transactions via the website of the establishment by introducing bank deals or buying products and services. There are several transactions customers can involved in on the internet which can be a small as basic retail account balance to a very big business cash transfer. Internet banking services, such as the ones completed through some other means are categorised predicated on the kind of customers they support. The next table shows some of the common retail and low cost internet bank services proposed by financial institutions. (FFIEC, 2006)

Since transactional websites typically permit the electronic exchange of confidential. Customer information and the copy of money, services through online bank makes the financial institutions to be vulnerable to higher risk than basic.



According to (Gerlach, 2000), internet bank services allow customers deal with their habitual banking transaction without browsing the lender building or reaching any banks staff. No need to hang on until 8 or 9 each day before you can get answer to your bank account demand or details Customers can handle their transactions anywhere they like so long as they are connected to the internet or where there is availability of internet. However, since most banks offers a day online banking services 7 days a week, internet banking makes it possible for you to view and use your account regardless of what time or day it is. Thus, they can make repayments, check balance, copy money etc at the safe place with their homes or office buildings. Hence online bank has cracked the limits of the traditional way of banking thus provides customers swiftness and convenience.

Time Cutting down and Money.

When you visit finance institutions, you'll discover that most banking institutions branches are always engaged with one activity and customers have to wait for some time before attended to. That is a waste material of hard work. Luckily, some bank ventures can be treated at home or in office or anywhere that is convenient for the customers. In other words, customers do not need to wait for a long period in a long queue or go to their respective finance institutions branch to carry out their banking business. Online banking therefore helps can help customers to save time and cost of traveling.

Ease and Efficiency

As long as they stick to the easy steps to be accompanied by login in their information and visiting the right button, customers can in a position to check their accounts and really know what their balance is, transfer funds and also perform other valuable trades. The well-timed check can help customers' overdraft charges and also to know if the trades they made was successful and completed. Hence, bank online helps customers to control their account easier and handily.

On Time Gain and Update Information

Online banking systems provide the customers a timely changes about both their existing and services and services, banking information and other essential information that the customers need to find out or be modified with. Therefore customers can benefit some comparative information at the appropriate time for them to make quick and right decisions.


Fewer banking building will be preserved consequently of online bank and fewer employers will be engaged there is a lower over brain with online finance institutions. The keeping they get therefore of the process allows them to provide greater interest rates on checking account and lower loaning rates and service demand.

Cost Effective

Internet banking cost less, it is because there are just few buildings to maintain and wages paid to employees will be reduced as well. Given that they have significantly more to safe now which allows them to increase their interest on savings account and lower financing rate and charges BETTER TO Get Fraudulent Activities Since you have the chance of enjoying your bill details whenever, it is simpler to know if any fraudulent activities have been through your accounts before much damage is done. Once you log into your bank account, you will see immediately whether there is anything incorrect when you check your deposits and debits. If you don't make any deal and you also see any peculiar details in your profile, you will see it write away and make necessary security alarm to the lending company As the internet offers miscellaneous advantages and opportunities, it also reveals various security risks. Having this at heart, banks take huge measures to safeguard the information sent and prepared when bank online. This comprises ensuring confidential data sent online cannot be utilized on changed by unauthorised alternative party. "But banking companies don't normally have affect of the systems used by the customers. The choice is entirely up to them. More over a system connected that is clearly a pc connected to the internet for example will usually be used for a number of other applications as well. The systems used by the online bank customers are therefore exposed to risks beyond the lenders control". Because of this, the bankers can't be liable for them. Berlin, (2007).

Some Dangers Faced With all the Internet. Berlin, (2007) Third party gaining access to information sent or getting information under wrong pretences, this can be done with the aid of the following: Computer virus and warms: Programmes that are delivered over the internet that can damage your pc when they replicate.

Trojans: programmes that intercepts passwords that's not recognized to users that compromise computer security.

Phishing: Using a false name, website or address for deceptive purposes.

Pharming: Users being redirected to deceptive server

Root packages; An unauthorized administrative level access without the real administrator noticing by using a malicious software. Their feature is almost as Trojans.

Hacking: Access a Personal computer via the internet you should definitely authorised.

Banks will have some numbers of measures in place that gives effective safety against episodes when information are refined by the bankers server or when information is directed online.


Rule 1: Install security software including an current scanner.

Additional security software needs to be installed. your normal operating-system standard tools together cannot solve some security problems. F your security is not effectively set up, you run the chance of unauthorised persons gaining access to your computer data. e. g never save PINs and TANs on your PC. A firewall can protect you from such attack

Rule 2: Protect sensitive data when sending it over available network.

Data sent online may be intercepted or looked at by an unauthorised third party when the network is not guaranteed. Banks have now taken some measure to ensure that data dispatched via the internet is encrypted before transmitting.

Rule 3: Be sure you know who you are dealing with.

Not everyone on the internet aren't who they declare they are simply. Check the Web address you are in and ensure that your bank's internet address is appropriately spelled. Hackers impersonate someone in a position of trust to get the info they needed. This is called "PHISHING". It is another strategy to steal confidential code. This functions by redirecting you with their own rogue server.

Rule 4: Be cautious with hypersensitive data and gain access to media

Your access code and multimedia must be shielded e. g. (PINs, potato chips) from unauthorised use. Do not save very sensitive data such as Passwords PINs, gain access to code, bank card volumes on your hard drive particularly if the PC is not been utilized by you alone. This may allow third party to view your computer data.

Rule 5: Select a secure security password.

A combo of upper circumstance and lower case letters, statistics and symbols is an example of a good password usually of 6 to 8 characters. It'll be difficult for one to guess your security password.

Rule 6: Only use a programme from a dependable source

Don't download from the internet any programme into your hard drive if you don't are certain of the source and this its reliable.

Rule 7: Use up-to-date programme version

Use your preferred internet browser and PC operating system version that is up-to-date.

Rule 8: Run security inspections on your PC

Take a few instant to run an individual security checks before using your PC to bank online. Make sure the complete security feature that defends your computer are on.

Rule 9: The security setting on your internet web browser must be triggered.

Use "Block ActiveX Control" and let Java applet to run after confirmation. Usually do not make use of internet browser auto-completion function which can save your consumer name and passwords you enter in and suggest matches.

Rule 10: Usually do not make your current account available for fraudulent financial deal.

Any offers that is asking you to make your current account available for repayment and other financial purchase for unknown businesses and specific must be suspicious particularly if they can be found not inside your country


Internet Security:

Internet security identifies the methods found in safeguarding data and information in a computer from unauthorized individuals. It is a serious concern in the world wide today. Individuals who use internet should be using the internet should be well aware of the trouble aroused because of this from it. A familiar methods employed by people to promise information in internet are Encryption of the data - Encryption of data handles packaging up the original information into an unintelligible form that can be decoded using a certain technique. That is called cipher text message.

Usage of passwords -Passwords are being used to avoid against the law accessibility of data so that the whole system is shielded. Creation of passwords must be in a way that the other people do not only guess it.


There are some several methods that helps in internet security. They are really the following;

  1. Firewalls:This is software that filters unlawful gain access to in a network. It will need to have a correct settings and must be combined with proxy firewall for a protected system.
  2. Taking Backup of Data: backup of the info from the system should be studied regularly. In case the computer unexpectedly crashes down or the operating system failed to shoe due to trojan attack, by taking the backup data will certainly reduce the penalty.
  3. Preventing Virus Attack: Viruses make a difference computer, Trojan horses, worms etc consequently of some afflicted files downloaded from the internet. They are really programs that are installed alone and run anytime the coordinator programs run and cause harmful attack.
  4. Baleful Links:Those who make an online search can avoid their system from getting damaged by the disease by preventing needless links and messages. Links may lead to download files out of the blue. These result in a problem to the security of the computer and for that reason must be avoided.
  5. File Sharing:Both original and pirated documents are joined up with when data are distributed on the internet in doing so reduces the velocity of the computer. This must be prevented.
  6. Routers:Some cable connections are avoided by certain routers from outdoors from the computer. NAT (Network Address Translation) is software that does this function and it's really of low priced and smallest amount difficulty.
  7. Preventing Spy-Ware: Internet securities are threatened by several software. With no permission of an individual some software works along with other application.

Insider threat diagnosis sill a challenge

Threats detection from inside has always been issues, but most ventures in information security still tend to give attention to keeping out trojans and intruders. The possible danger of a rascal employee can regularly be marked down, mistreated or simply take the chance to do business.

"A fresh survey conducted among 600 office staff in Canary Wharf, London and Wall membrane Street, NY, revealed that lots of employees have no qualms about mishandling information. One-third of them said they might grab data to help a friend find employment, and 41% admitted that they had already taken data, in the event they needed it in some future work". Ron C. (2009) The analysis, which was commissioned by security company Cyber-Ark Software Inc. , discovered that customers and their contact details were the most liked files to grab, followed by programs, proposals and product information.


Understanding of the impact of technology established transfer system on customer's perceptions and behavior is vital. (Moutinho et al. 2000). If finance institutions are prepared to assimilate new technology into their existing relationship buildng activities Asher (1999) argued that cooperate customers seems to be willing to make use of internet as an integral medium in lenders dealings. He said "the data suggest that coperate clints show a desire for online bank, due to the perception to be more cost effevtiv thah classic channels" Finance institutions use this technology operating delivery may often compromise bank business relationship. (Keltner 1995) in conditions of higher degree of convinience and accessability. (Devlin 1995) Therfore customers conception is high in the delivery of the electronic digital banking. Regarding to Nexhmi et al. (2003). Customers participate typically is the process of enabling customers to make their services, products. It could be diversified between your types of services offered, even the services providers within the same market place for intance. Meuter et al. (2000) highlights that "self service technologies are increasing the way in which customers connect to their providers in the creation of service benefits and are an example of a market place transaction that require no personal interaction"


Internet banking was still in an exceedingly young stage and its own whole benefits has been realised. (Nath et. al 2001). In this case, managers of financial institution's attitude towards perceptions of electronic stations were of significant importance. (Akinci et. al( 2004). Mols (2001) declare that " management support and future orientation were the two most important factors which driving a vehicle the benefits and expectation of the new e-channel" In another review, Mols (2000) grouped the bank managers according to their attitude towards internet banking: The "sceptics" the "nervous", the "positive" and the "reluctant" organizations. In Scotland, Moutinho et. al (2002) emphasized he scotish loan company professionals efficiency and improvement of customer services concerning perceive features of internet banking. Faster easier and much more reliable service to customer and the improment of the competitive position were highlighted. (Aladwani, 2001). Predicated on the UK evidence, Li 2001 stated that: " the built in bank model, around which traditional bankers have built their strategies in the past were showing signal of fragmentation" In such a sense, he sumerised four rising internet model in the UK. The first was based on accepting internet banking as a fresh delivery route that was included with existing model. The second model is named "e-banking", was predicated on multibanking in which the internet was the integrative component. The third model contains creating baby "e-banks" using their own e brand name and product range. The very last model was viewed as entirely a new business model with out a physical network.

Laws, Directives, Legislation and Standards

Shon Harris All in a single Certified Information System Security Professional Exam Guide, Fourth Edition, 2008

Different regulations, directives, restrictions and specifications were enacted for different reasons such as data safety, software copyright, data personal privacy, computer misuse as well as adjustments on cryptography.

Health and basic safety, prevention of deceptive activities, personal level of privacy, general public order, intellectual property, environment protection and nationwide security are reasons why the laws can be applied in governments and private sectors. The violation of the regulations has a severe consequence attached to them which might range from fine to jail term of up to ten years or even more depending on gravity of the criminal offenses committed.

Examples of the laws that governs information consumption and security are discussed briefly below

The Sarbanes-Oxley Work (SOX)

The SOX was enacted in 2002 as a result of the corporate scandals and scam that threatened the market of United States of America. This is also known as the general public Company Accounting Reform and Trader Protection Work of 2002 that applied to companies that publicly trading on United States market. How organizations must track, manage and record on financial information was provided for in the SOX requirements. Procedures and settings must maintain location to protect data as a result of organizations reliance on computer equipment and electric safe-keeping for transacting and archiving data, the section 404 of SOX is straight applied to information technology. Chief Financial Officer (CFO), CEO (CEO) and more can be jailed if the law is violated.

The Computer Fraudulence and Abuse Act

This take action is the principal U. S national antihacking statute that was written in 1986 and amended in 1996. Prohibition was made on seven forms of activities and was made national crimes:

  • The knowing access of computer systems of the government to obtain categorized information without authorization or more than authorization. .
  • The intentional gain access to of computer to obtain information from a lender, the federal government, or nay shielded computer involved with interstate or overseas marketing communications without authorization or through use of excess of authorization.
  • The intentional and unauthorized gain access to of personal computers of the government, or computers employed by or for administration when the. access impacts the government's use of that computer.
  • The knowing access of a covered computer without authorization or more than authorization with the intent to defraud.
  • Knowingly leading to the transmission of a program, information, code, or command word and, therefore of such conduct, intentionally causing harm without authorization to a safe computer.
  • The knowing trafficking of computer passwords with the purpose to defraud.
  • The transmitting of communications made up of threats to damage a guarded computer.

The penalty for breaching this function ranges from felonies to misdemeanors with corresponding small to large fines and prison sentences.

Employee Privateness Issues

For a business to be sufficiently protected, various worker privateness issues must be looked at within the business. Organization must understand what it can and cannot screen therefore of different status with different level of privacy laws.

Organization must state it in its policy that monitoring in any form are done within the organization to avoid being sued by worker for invading their personal privacy. That is considered the simplest way in which business can protect itself.

Payment Card Industry Data Security Standard (PCI DSS)

The advent of internet and computer technology led to the upsurge in identity fraud and credit card fraud which gives opportunity to hundreds of thousands to be stolen simultaneously.

Stabilizing customer rely upon credit-based card as a safe way of executing transaction and to curb the problem, a proactive step was taking by the mastercard industry. The standard affects any entity that functions, transmits, stores or accepts credit data.

The PCI Data Security Standard comprises of 12 main requirements that are divided into six major categories. They are

A Secured Network must be built and managed.

  1. Requirement 1: To protect cardholder data, a firewall settings must be installed and maintained
  2. Requirement 2: Ensure that systems passwords and other security guidelines aren't in vendors offered defaults.

Data of Cardholder must be guarded.

  1. Requirement 3: Stored data of cardholder must be protected.
  2. Requirement 4: Across wide open and public sites, cardholder data must be encrypted in transmission

Vulnerability Management Program must be maintained.

  1. Requirement 5:Anti-virus software must be used and modified regularly.
  2. Requirement 6: Secured systems and applications must be developed and looked after.

Access Control Actions must be strong in its implementation.

  1. Requirement 7: Predicated on Business need-to-know, cardholder data gain access to must be limited.
  2. Requirement 8: Every specific access computer must get a unique ID.
  3. Requirement 9: Physical access to cardholder data must be adequately restricted.

Monitoring and Tests of Sites must be completed regularly

  1. Requirement 10: All usage of network resources and cardholder data must be tracked and checked.
  2. Requirement 11: Security systems and operations must be regularly examined.

An Information Security Plan must be developed and taken care of.

  1. Requirement 12: An insurance plan that addresses information security must be maintained

The violation of the typical does not lead to jail term but may result in financial penalties or revocation of vendor position within the visa or mastercard industry because PCI DSS is a private sector initiative.

2. 5 Database Security, Conformity and Audit by Charles Le Grand and Dan Sarel. <b\>Information Systems Control Journal Vol 5, 2008.

Grand and Sarel (2008), expresses what must be done to sufficiently protect the data source to ensure that conformity is met. In addition, it provides information for auditing purposes. The goals for ensuring databases gain access to control were also exploded by the writers.

On the final outcome note of this article the authors said that "the easy goal of ensuring databases security is to ensure that only authorized individuals have access and all gain access to is checked. To limit usage of only people whose careers require it, access protection must connect with identifying the hypersensitive data elements: the methods for managing user credentials and access protection under the law: and the files of who reached what, when and what they does with it".

Insider Menace- The fraudulence that places companies At Risk by Patrick Taylor Vol 1, 2008

This article was brief in context but provide real information about who normally perpetrate scams in organization. Fraud committed by trustworthy employees in professional management, accounting, sales, fund or procurement position constitute73percent of the survey conducted by the Certified Fraud Examiner which is an annual review and alsoprovide what organizations can do to mitigate against the risk. Finally, it offers information into who should be adequately monitored.

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