INFORMATION SECURITY

Information Security

Information Security

Introduction

Banks and financial institutions are relying increasingly on information technology to support growth and expansion into the global marketplace. The major technologies which are used nowadays include Internet banking, mobile banking, telephone banking, smart cards, credit cards, and automated teller machines (ATM's). These methods allow customers to carry out many routine transactions without going into a branch. However, with all of the benefits that technology brings to the banking industry, it also brings increased risks and threats. Many banks are faced with a growing concern over the impact of dissatisfied employees, unauthorized users, industrial spies and hackers exploiting and compromising their information systems and networks. As technology becomes more sophisticated, so do those who would like to enter the world of information, such as these professional hackers. That is why banks should not only invest in providing new I.T. based services but they should also invest in a good security system to protect themselves and their customers against viruses, spyware, keystroke loggers and eavesdropping programs.

Information technology does not always mean fewer costs for banks to operate, but it has become a necessity in today's competitive market. This showed very clearly when visiting both the leading bank branches in Malta. They seem to be competing by offering new I.T. bank services. For example Bank of Valletta started using mobile banking while HSBC are launching this service in March 2005. Mobile and wireless technology enable banks to satisfy clients who demand real-time information and mobile payment accessibility for example buying top-up cards for your mobile. To access mobile banking you will need a WAP-enabled mobile phone. Through a mobile phone, an individual can access his or her account information, effect transfers to third parties, request banking services as well as other information and pay bills. There may be times when it is not possible to access a personal computer. It is in these particular situations that one can use mobile and telephone banking. The latter is also an innovative way of conducting banking from the commodity of one's home with helpful interactive voice prompts to assist in both English and Maltese, this also helps complete daily banking transactions within minutes. One of the largest networks commonly used nowadays by banks is the internet. This directly provides a connection within different branches of banks and also, interrelates the customer at home with the bank. Both banks practice internet banking and sustain that you cannot get information on your accounts any faster than through internet banking. It involves the customers providing their identity through a form of registration which hence enables the client to access their financial services through a website. Internet banking has affected banks in such a way that customers have started using banking services at home rather than physically visiting a branch, and this shows how banking has become more I.T. based. If the customer, while accessing banking services via internet, looses the internet connection during a transaction the customer may find it difficult to determine whether the transaction ...