Left to their own devices: The BYOD hazards of digital banking services

In the mid- to late ’70s, homeowners in the neighborhood where I grew up started installing automatic garage door openers with those nifty remote controls that clipped onto the visor of your car. (Then fell off and bounced into the no-man’s land between the driver’s seat and the car door if you tried to use the visor.)

Around this time, one of our neighbors came home from a vacation to find that their garage door had stood open for most of a week.

After a few more inexplicable door-openings, this family discovered that their opener had the same DIP switch setting as the one belonging to a neighbor down the street who habitually pressed the button on her remote a half-block from her home.

Eventually, garage door opener manufacturers solved this little glitch. And today, having your house cleaned out because thieves spoofed your LiftMaster is not a big worry.

Instead, you could have much bigger intrusions to worry about — like having your checking account cleaned out because cyberthieves spoofed your new Samsung Galaxy mobile phone.

Last week, a one-hour webinar sponsored by Wincor Nixdorf and hosted by ATM Marketplace addressed the difficulties that FIs face in securing the accounts of consumers who crave nifty — and convenient — technologies like smartphone banking apps; online downloads of account information to programs like Mint; cardless payments and cash wiscreen-shot-2016-05-12-at-235942thdrawals; and instant access to everything.

Terence Devereux, a senior trusted advisor in the Wincor Nixdorf Software division, discussed the growing catalog of digital services that deliver the awesomeness of instant access to information, but at the same time create unprecedented risk for unauthorized intrusion into personal data files and finances.

And the larger the catalog of overlapping devices and touch points in the customer service carousel, the greater the risk of unwittingly opening a backdoor for individuals with mad computer skills and bad intent.

One slide in Devereux’s presentation illustrated (literally) the complications that can arise when consumers introduce their own mobile devices into the personal banking process.

The slide graphic, titled, “Customer journey: Mobility meets brick and mortar,” Concentrating on delivering an improved customer experience,” shows a hypothetical, end-to-end branch interaction by a mobile device-carrying customer.

Recommended Posts