A banking app is nothing new to those living in developed countries. But in the developing countries, some banks have had to create a session where customers are shown how to download, install and make use of banking apps.
Since some of these customers have no idea how a computer works, the instructors still need to inform each customer on what could happen if a stranger got a hold of their username and password.
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But what happens when the issue is with the banking app itself. The security flaw discovered by researchers at the University of Birmingham had nothing to do with app users.
After conducting a test on hundreds of similar apps, the researchers discovered a security flaw that would allow hackers to gain access to a customer’s banking app.
According to the researchers, banking apps – even the ones owned by highly-ranked banks across the world – had a simple access point that could be used by a hacker to gain access to these applications.
Due to the way these apps are being programmed, a hacker on the same network as the user could easily look into the banking app: steal username and password or simply take over the user’s mobile banking app.
What this means is that if you are fortunate enough to use the WiFi or corporate connection as a hacker, he could gain access to your mobile banking application.
This is possible when an attacker with the required capability makes use of a technique known as “man in the middle attack.”
|A good hacker on the same connection can gain access to sensitive information|
This vulnerability of banking apps was not discovered using any everyday security check tool or software. The researchers used sophisticated software which is what made this discovery possible.
The discovery made by the researchers does not only affect banking applications. It surely affects some if not all of the other security-critical financial apps not mentioned.
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The researchers say they relayed the information to the banks involved for them to get rid of the flaws. The banks involved fixed the vulnerabilities and released better versions of the banking applications.
So to stay secure, ensure that you always get the latest version of your banking application. Change your passwords from time to time and make sure you have multiple notification media for information on your transactions.