SIOUX FALLS, S.D. (3/22/13)--The ATM Industry Association has published a new best practices manual for preventing mobile banking fraud, with special reference to applications linked to ATMs.
Due to the increasing popularity of mobile phones--in particular smartphones and tablet computers that offer Internet access--mobile banking and related mobile commerce has become an important channel for the financial services industry, including the ATM industry, ATMIA said.
Mobile device interactions with an ATM can include:
- Cashing out transactions initiated on a mobile device;
- Alerting consumers to transactions performed at an ATM;
- Receiving an electronic receipt for a transaction performed at an ATM; and
- Providing a one-time password to authorize an ATM transaction by replacing the traditional card and personal identification number used to perform an ATM transaction.
"In a time when the ATM can be used to complete transactions begun on a mobile phone, and as cardless ATM transactions gradually replace ones initiated by plastic cards, it is important to check out any security vulnerabilities associated with mobile phone banking applications," explained Mike Lee, ATMIA CEO.
The manual also is designed increase understanding of the relationship between the mobile and ATM channels.
"Downloadable apps for smartphones and some tablet computers are creating new, more sophisticated interactions between the mobile device and the consumer's bank accounts, so we fully expect mobile banking to grow significantly," Lee said.