| It seems like the world is going wireless these days, | | | | more attractive targets for the criminally-minded as |
| including the banking and trading industries. Wireless | | | | their gains are greater. Users have worries that |
| banking and trading is still in its infancy stage, and one | | | | personal identifying information - credit card account |
| must keep up with new products, new technological | | | | numbers, identities, and other information - may be |
| breakthroughs, and developmental aids to help with | | | | stolen. Such fears are confirmed with statistics |
| transitions from the old to the new. Standards are | | | | indicating that more than ninety percent of corporate |
| changing for APIs (interfaces), gateways, security | | | | documentation/financial files have been hacked. Data |
| methods, screens, operating systems, browsers, | | | | flows through wireless devices are vulnerable with |
| handheld devices, and different bandwidth | | | | many systems offering little to no security with most |
| requirements. All these changes reveal risks to | | | | security transgressions being carried out by |
| systems and consumers. Wireless banking and trading | | | | employees working within the institutions or even the |
| can be risky, lengthy, and complicated to develop and | | | | service providers themselves. |
| use. Interfaces must be able to connect backend | | | | Individual computing powers of handheld devices limit |
| systems already in place, and application servers have | | | | the ability to customize security, and many facilities that |
| to accommodate all protocols and devices. | | | | handle financial transactions are using a two-step code |
| This is a must because manufacturers do not know | | | | verification procedure as a means to protect and |
| which device users plan to use. This is true for | | | | verify accessibility. This means that the user must be |
| application servers - they must be able to | | | | able to enter the correct codes to gain system entry. |
| communicate with all gateways like WAP, GSM, | | | | These codes must agree in order to authorize any |
| two-way pagers, and other devices. Wireless | | | | transaction. It should be noted that the use of a |
| networks function independently, and many devices, | | | | two-step code verification procedure has shown a |
| especially handheld, utilize their own standards to | | | | drastic reduction in the number of hacking incidents |
| deliver data over data channels. Users personalize by | | | | simply because of the requirement for personal |
| customizing screens, alerts, notifications, and | | | | knowledge of the same codes by the user, the |
| messaging devices easily. Systems should be capable | | | | service provider, and the financial institution. Another |
| of sending notices to users as needed regardless of | | | | widely used system is the PK1 or Public Key |
| devices types and brands. Platform selection is | | | | Infrastructure utilized by many personal digital |
| important and challenging for banking institutions and | | | | assistants and other similar devices. This system |
| should not be done independently. Platforms should | | | | employs the use of two keys - public and private - to |
| have the ability to integrate easily and reliably with new | | | | verify and decode data. The bank or other institution |
| gateways to the backend or existing system. Some | | | | then uses the same system to prevent unauthorized |
| banking institutions outsource the development, | | | | system entry. |
| implementation, and hosting of their systems and some | | | | It is more or less a question of what is better - speed |
| may choose to use a third party to implement and | | | | or security. Encryptions vary depending on the |
| host their system. All are viable options. | | | | platform used and the operating system with |
| Security is the most important issue facing financial | | | | encryption speeds varying according to software |
| institutions today. In an age of wireless communications | | | | selected. Another aid in security protection is the use |
| with millions of users, all systems - whether wireless or | | | | of user identifications and individualized unknown |
| cable - run the risk of hackers sometimes resulting in | | | | passwords. |
| devastating losses. Wireless financial transactions are | | | | |