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Precautions to be taken in Mobile Banking

Indeed, mobile banking scams have become common these days. Here’re some precautions you need to take before you decide to reach your bank through your mobile phone.

  • FIRST THINGS FIRST
It is true that mobile banking saves you from those bank trips for every small little thing. But before you get lured by the convenience and the ease that mobile banking services provide, make sure that you know everything about the service. Mobile banking is available through many modes. Which one is compatible with your handset is the first thing that, experts say, you should know as a mobile banking user. A user must know what his bank is charging for the service and also the rates that telecom companies levy for connectivity and messaging.

  • SAFETY MEASURES

Apart from the basics, you should be aware of the safety measures that you need to take. As is always prescribed, you should immediately change your password and destroy the password mailer after doing so. Disclosing your password to someone (including bank staff) and using obvious passwords like name, date of birth, etc, is the biggest folly. You should never ever store mobile banking PIN (m pin) in your cell phone memory and should also delete all messages that have your m pin information. If possible, disable the temporary storage. The bank accounts of mobile banking users can be manipulated very easily if they lose their phone or change their phone number or handset. If you do any kind of tampering with your phone or the number, then you should immediately inform your bank, get your mobile banking services blocked and request for a new m pin.

  • FRAUDS! BUT HOW

If you think that mobile banking solutions are all about cutting down the number of times you run to your bank, think again. Mobile banking frauds have become very common these days and it can happen in a number of ways. If you have stored your m pin on sent messages or on the phone and the phone is lost, then in your account can be easily misused. Anyone can easily read your messages as they are sent in clear text. Other than that, if there is virus in your phone and the same has the capability to access your m pin details, then also you can be a victim of fraud.

Frauds can happen by way of cloning of websites. Although most banks have encrypted websites but if they are not then account users can be fooled by fake websites. One of the possible ways of identifying the cloned website is the http address at the top. The fake website can never have the same uniform source locator (URL) and therefore one must always check the address bar properly at the top

MUST KNOW

Modes of mobile phone banking solutions

1) Application based


Download an application on your handset from bank website or through bluetooth

2) SMS based


Interact with the bank’s SMS gateway from your handset using predefined SMS text codes

3) USSD based

Interact with bank using preset codes on USSD with your bank’s published gateways. USSD (Unstructured Supplementary Service Data) is a Global System for Mobile (GSM) communication technology that is used to send text between a mobile phone and an application program in the network.

4) WAP Based

Use GPRS services on your handset to access bank’s mobile banking site on your handset

Be informed about

• Handset is compatible with which of the above modes
• Bank Charges
• Telecom rates for messaging or connectivity

Safety measures

• Never store your m pin in the phone
• Delete all messages, which have your m pin information
• Check your mobile phone for viruses/ Trojans

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