E-Banking Risks in Botswana

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System Architecture and design4

E-banking has become a common trend here in our country. It has made life easier for the life of Batswana, they can easily access their checking’s, savings credit card, mortgage and loan accounts with just a few clicks, anytime anywhere. They can transfer funds, pay bills and view transaction history just with a few clicks. They do not have to leave their home to do their banking. They can access their accounts in a matter of seconds. They can receive monthly statements electronically instead of by mail and save a lot of paper work in the process. They can view their statements in order of date and are likely to find the information you are looking for quicker than flipping through pages of older paper statements. Their many fundamental benefits e-banking has brought to Batswana but unfortunately, technology is never 100 percent reliable. Online banking can compromise your security and privacy. Hackers can obtain your account number or Social Security number and make unauthorized transactions on your behalf. Someone may get your security details if you didn't close the browser window or if the password memorization feature is enabled for your bank's website. RISKS POLICIES FOR THE FOUR TOP BANKS IN BOTSWANA

Without a doubt, the technological growth has considerably affected the profile of banks risks more generally. Some of the risks are increased, while others on the contrary are possible to be decreased. FNB as technology leader out of the four banks makes banking security as its own priority, so they take all reasonable steps to protect their systems against intrusion or compromise. In addition to User Name/ID and Password, they use state-of-the-art encryption to ensure the security of the online transactions and personal financial information are protected. They also offer Internet Banking customers 3 further layers of security. Standard bank’s transactional sites are protected through encryption that complies with international standards. Encryption is used to protect the transmission of personal information when completing online application forms. The Internet servers are protected by firewalls and intrusion detection systems. Access to information on these servers is restricted to authorized personnel only. Standard bank has employed the services of independent security experts to test and advise us on the security of our systems. Barclays and Stanbic bank offer security services such as use fire walls, cryptographic techniques, public key encryption and digital signature which fully protect customer and prevent intrusion. These four banks have strong system design to prevent intrusion.

Internet is a public network of computers which facilitates flow of data information and to which there is unrestricted access. Banks using this medium for financial transactions must, therefore, have proper technology and systems in place to build a secured environment for such transactions. Security risk arises on account of unauthorized access to the bank’s critical information stores. (Cristina et al 2008a. Pp. 1537-1542) Security breaches essentially fall into three categories;

* Breaches with serious criminal intent (e.g. fraud, theft of commercially sensitive or financial information), In addition to external attacks banks are exposed to security risk from internal sources. Employees being familiar with different systems and their weakness become potential security threats in a loosely controlled environment. They can manage to acquire the authentication data in order to access the customer accounts causing losses to the bank. * Breaches by ‘casual hackers’ (e.g. defacement of web sites or ‘denial of service’ - causing web sites to crash), hackers operating...
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