E-Banking Security Issues – Is There a Solution in Biometrics?

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Journal of Internet Banking and Commerce
An open access Internet journal (http://www.arraydev.com/commerce/jibc/) Journal of Internet Banking and Commerce, August 2011, vol. 16, no.2 (http://www.arraydev.com/commerce/jibc/)

E-Banking Security Issues – Is There A Solution in Biometrics?

Amtul Fatima Scholar, Jawaharlal University of Technological studies, A.P., India Postal Address: Tallakunta, Chandrayangutta x-road, Hyderabad -500 005,A.P., India Email: brackishsea@gmail.com

ABSTRACT The providers of Internet banking services must be more responsive towards security requirements. While there is no doubt that Internet banking transaction should have layered protection against security threats, the providers should approach security considerations as part of their service offerings. Biometric based authentication and identification systems are the new solutions to address the issues of security and privacy. Using biometrics for identification restrict individuals from access to physical spaces and electronic services An effective authentication method should have customer acceptance, reliable performance, scalability to accommodate growth, and interoperability with existing systems and future plans. In this study, the security threats in Internet banking, its solutions in biometrics and its acceptance in the consumer market are studied using descriptive and exploratory research. The methods of descriptive research are used to obtain information concerning the major security issues in e-Banking. The research had been completed on the basis of secondary data (online databases, scientific journals, surveys, news). Keywords: Biometrics, e-banking, electronic banking, e-security, secure transactions, security threats, Identity thefts © Amtul Fatima, 2011

JIBC August 2011, Vol. 16, No.2    INTRODUCTION


Banking organisations have been delivering services to consumers and businesses remotely for years. Electronic funds transfer, including small payments and corporate cash management systems, as well as publicly accessible machines for currency withdrawal and retail account management are global fixtures. However, delivering financial services over public networks such as the Internet is bringing about a fundamental shift in the financial services industry.[1] According to Heikki et al. (2002), the transformation from the traditional banking towards e-banking has been a ‘leap’ change. The increase in information access terminals along with the growing use of information sensitive applications such as e-commerce, e-learning, ebanking and e-healthcare have generated a real requirement of reliable, easy to use, and generally acceptable control methods for confidential and vital information. On the other hand, the necessity for privacy must be balanced with security requirements for the advantage of the general public. Payment systems are undergoing radical changes stirred largely by technical advancement such as distributed network technology, real-time processing and online consumers’ inclination to use e-banking interfaces making the study of biometrics even more important in this new E-World.[2] Financial institutions offering Internet-based products and services to their customers should use effective methods to authenticate the identity of customers using those products and services.[3] An accurate automatic personal identification is critical to a wide range of application domains. Traditional personal identification methods (e.g., passwords, PIN) suffer from a number of drawbacks and are unable to satisfy the security requirement of our highly inter-connected information society. Biometrics refers to automatic identification of an individual based on her physiological or behavioral traits. While biometrics is not an identification panacea, it is beginning to provide very powerful tools for the problems requiring positive identification.[4] e-BANKING – THE PRESENT SCENARIO: In August of 1995, Citibank had...
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