Unit 2 Online Banking Challenges Assignment-Btechnd

Security Techniques:

Authenticating Credentials : Using digital signatures which are based on various encryption algorithms is a method which has been accepted by most of the authorities of authentication. Apart from authenticating the user, the signatures also give the time stamp of the message and help ensuring data integrity as well.
Access level monitoring and control : Access control can be created with the help of the process of supervising the access levels and providing the privilege of access to only sensitive resources and information and services to trusted persons. The users of the online banking are provided with particular level of authorization depending on the credentials of them and in tune with that they can access use resources and services provided by the banks. This helps in stopping unauthorised use of resources and also makes sure that there is better security system present.

Since this process can control the tasks a certain person can do, the benefits of this particular way of securing plays a better role. Hence if a certain person does not have the authority to use resources to which they can do some criminal or harmful measures, despite the user identification being wrongly used, the system will not be harmed in any way. The system though is strong is not fool proof yet. The process discussed then has to depend on various choices of the granted accesses.

State Appraisal Functions : The State Appraisal Functions process can be handy in securing the integrity of the data when it is transferred from one system to another. In contrast to the other security processes, this technique works with data which is not encrypted. These functions can be clubbed with a sender’s binary image and state appraisal functions then makes sure that all the parameters which are relevant are utilised when this e system user is executed. This process also helps in validating these parameters which makes sure that only authorised parameter is used. But a problem with this process is if the execution state of a user is somehow compromised, the agents who are not harmful will also be dangerous if such malicious activities are carried out.

Firewalls : Firewalls and filtering routers are used for making sure that only the internet users who have authority to access can access the system. The PIN/TAN system where the PIN represents a password, used for the login and TANs representing one-time passwords to authenticate transactions is also used. These transactions are carried out via web using SSL secured connections.

Conclusion and recommendations

As it can be clearly understood, that online banking can be problematic for banks as well as the regulators. The banks should take the following steps for dealing with these risks:

Banks should adopt a strategy which is practised from the top and is simple and can be widely disseminated. This strategy should also take into account the effects of online banking as well as a process in place for measuring performance against it. Banks should also be aware of the risks they are exposed to and manage them smartly. Doing market research, adoption of systems which are enough capable and scalable. They should also make sure that that their debt crisis management techniques are well prepared to deal with online banking related hassles.

References

  • Bank Administration Institute and the Boston Consulting Group (1995), The Information Superhighway and Retail Banking, Bank Administration Institute, Chicago, IL.
  • Barwise, P. (1997), “Editorial”, The Journal of Brand Management, Vol. 4, No. 4, pp. 220-3.
  • Booz, Allen and Hamilton (1996), Internet Banking in Europe: A Survey of Current Use and Future Prospects, London.
  • Cooper, R.G., Easingwood, C.J., Edgett, S., Kleinschmidt, E.J. and Storey, C. (1994), “What distinguishes the top performing new products in financial services?”, Journal of Product Innovation Management, Vol. 11 No. 4, pp. 281-99.
  • Daniel, E. (1998), “Online banking: winning the majority”, Journal of Financial Services Marketing, Vol. 2 No. 3, pp. 259-70.
  • Storey, C. (1997), “Online banking: strategic and management challenges”, Long Range Planning, Vol. 30 No. 6, pp. 890-8.
  • Negroponte, N. (1995), Being Digital, Knopf Publishing, US.Order Now

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