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INTRODUCTION
Banks have traditionally been in the forefront of harnessing technology to improve their operations including the Automated Teller Machines, etc. With the popularity of PCs, easy access to Internet and World Wide Web (WWW), Internet is increasingly used by banks as a channel for receiving instructions and delivering their products and services to their products, services and efficiency. They have, over a long time, been using electronic and telecommunication networks for delivering a wide range of value added products and services. The delivery channels include direct dial up connections, private networks, public networks etc and the devices include telephone, Personal Computers including the Automated Teller Machines, etc. This form of banking is generally referred to as Internet Banking. The provision of banking services on a secure website operated by their retail or virtual bank, credit union or building society is referred to as internet banking Here the customers can access the data without time and geographical limitations. Broadly, the levels of banking services offered through INTERNET can be categorized in to three types: The Basic Level Service is the banks websites which disseminate1 information on different products and services offered to customers and members of public in general. It may receive and reply to customers queries through e-mail, In the next level are Simple Transactional Websites which allow customers to submit their instructions, applications for different services, queries on their account balances, etc, but do not permit any fund-based transactions on their accounts, The third level of Internet banking services are offered by Fully Transactional Websites which allow the customers to operate on their accounts for transfer of funds, payment of different bills, subscribing to other products of the bank and to transact purchase and sale of securities, etc. The above forms of Internet banking services are offered by traditional banks, as an additional method of serving the customer or by new banks, who deliver banking services primarily through Internet or other electronic delivery channels as the value added services. Some of these banks are known as virtual banks or Internet only banks and may not have any physical presence in a country despite the offering
Our civilization operates on a busy, busy, busy mentality. We are regularly multitasking, and there does not seem like there is ever enough time. Banks naturally have very tough hours for working adults to fit into their schedule. With internet banking, you can do your banking several day of the week at several hour of the day. The enormous thing is that you can relocate funds from account to account, check in on your balances, and perhaps the greatest benefit is that you know how to pay your charges online! You can have your charges sent electronically so that you are not just saving paper, but you are also saving on postage. As an alternative of buying a stamp to send in your check, you be able to just transfer money directly into your account. Internet banking also offers you slightly more protection . You be able to keep an extremely watchful eye on the debits and credits that hit your account instantly. By maintaining an eye on it, you can see if there are any suspicious charges almost directly so you can defend your finances and personal information. The evolution of electronic banking started from the use of automatic teller machines (ATM) and has passed through telephone banking, direct bill payment, electronic fund transfer and the revolutionary online banking . The future of electronic banking according to some is the acceptance of WAP enabled banking and interactive-TV banking . But it has been forecasted that among all the categories, online banking is the future of electronic financial transactions. The rise in the e-commerce and the use of internet in its facilitation along with the enhanced online security of transactions and sensitive information has been the core reasons for the penetration of online banking in everyday life . The fundamental shift towards the involvement of the customer in the financial service provision with the help of technology especially internet has helped in reduce costs of financial institutions as well as helped client to use the service at anytime and from virtually anywhere with access to an internet connection. According to theorists customer evaluation of the electronic services is influenced by attributions of success and failure in inter personal service situations. The use of electronic banking has removed the banking personnel that facilitate the transactions and has placed additional responsibilities on the customers to transact with the service. Although the use of E-banking is provided for the benefit of the customers but these changes require increased work or involvement on the part of customers.
CONTEXT
The world is changing at a staggering rate and technology is considered to be the key driver for these changes around us. An analysis of technology and its uses show that it has permeated in almost every aspect of our life. There are many activities are handled electronically due the acceptance of information technology at home as well as at workplace. Internet can be seen as a truly global phenomenon that has made time and distance irrelevant to many transactions. The transformation from the traditional banking towards internet banking has been a leap' change. During 1980s there were certain developments such as: Rapid development of internet TCP/IP system E-commerce
In May 1995 Wells Fargo-the first bank in the world to offer customer access to their accounts over the internet. ICICI bank was the first to initiate the internet banking revolution in india during 1997 under the brand name Infinity.
Transactional Internet Banking-The most popular online banking type, transactional Internet banking offers all of the benefits of a traditional brick-and-mortar institution. This includes full control over your accounts---deposits, withdrawals, transfers, updates and online payments. Increased security measures now make Internet banking safe, secure and convenient, especially in the case of mobile online banking.
TELEPHONE BANKING
When banking and financial services are delivered to the customer of a bank through the It uses AVR(automated voice response) In this technology a customer uses the tone-phone to send digitized data messages to the
system in order to activate a particular service. the system contains software to recognize the tone/word.
MOBILE BANKING
It refers to the banking activity that are carried out on mobile phone. Current Mobile Banking Applications: SMS Banking WAP Banking STK (Sim Toolkit) Banking
o o o
IVR
Interactive Voice Response (IVR) is a software application that accepts a
combination of voice telephone input and touch-tone keypad selection and provides appropriate responses in the form of voice IVR has come into our life at the beginnings of 90s.
First step in Telephone Banking Peak transaction volume in salary payment days for balance inquiry Integrated with ATM system
a magnetic stripe or a plastic smart card with a chip, that contains a unique card number and some security information such as an expiration date or CVVC (CVV). Authentication is provided by the customer entering a personal identification number (PIN).
Using an ATM, customers can access their bank accounts in order to
make cash withdrawals, credit card cash advances, and check their account balances as well as purchase prepaid cellphone credit.
The automatic funds transfer is a financial transaction that ensures funds are sent and
SECURITY MEASURES
There exist two different security methods for online banking. 1. The PIN/TAN system where the PIN represents a password, used for the login and TANs representing one-time passwords to authenticate transactions. TANs can be distributed in different ways, a. the most popular one is to send a list of TANs to the online banking user by postal letter. The most secure way of using TANs is to generate them by need using a security token. These token generated TANs depend on the time and a unique secret, stored in the security token (this is called two-factor authentication or 2FA). Usually online banking with PIN/TAN is done via a web browser using SSL secured connections, so that there is no additional encryption needed. b. Another way to provide TANs to an online banking user, is to send the TAN of the current bank transaction to the user's (GSM) mobile phone via SMS. The SMS text usually quotes the transaction amount and details, the TAN is only valid for a short period of time. Especially in Germany and Austria, many banks have adapted this "SMS TAN" service as it is considered as very secure. 2. Signature based online banking where all transactions are signed and encrypted digitally. The Keys for the signature generation and encryption can be stored on smartcards or any memory medium, depending on the concrete implementation.
COUNTER MEASURES
There exist several countermeasures which try to avoid attacks. Digital certificates are used against phishing and pharming, the use of class-3 card readers is a measure to avoid manipulation of transactions by the software in signature based online banking variants. To protect their systems against Trojan horses, users should use virus scanners and be careful with downloaded software or e-mail attachments
ARCHITECTURE
In the internet architecture there is a WEB SERVER. To the web server the BANK SERVER is connected. Banks access the customer database and then get connected to the web server for the transactions. The web server is connected to the internet. Firewalls are used for the protection.
MAIN CONCERNS IN INTERNET BANKING In a survey conducted by the Online Banking Association, member institutions rated security as the most important issue of online banking. There is a dual requirement to protect customers' privacy and protect against fraud. Banking Securely: Online Banking via the World Wide Web provides an overview of Internet commerce and how one company handles secure banking for its financial institution clients and their customers. Some basic information on the transmission of confidential data is presented in Security and Encryption on the Web. PC Magazine Online also offers a primer: How Encryption Works. A multi-layered security architecture comprising firewalls, filtering routers, encryption and digital certification ensures that your account information is protected from unauthorised access: Firewalls and filtering routers ensure that only the legitimate Internet users are allowed to Encryption techniques used by the bank (including the sophisticated public key
access the system. encryption) would ensure that privacy of data flowing between the browser and the Infinity system is protected. Digital certification procedures provide the assurance that the data you receive is from the Infinity system.
6. Accessibility- If the Internet goes down in your area or the area of the banking office, you will be unable to access your accounts. This includes being unable to withdraw money from ATMs or to use your debit card.
Phishing
A person's personal details are obtained by fraudsters posing as bankers, who float a site similar to that of the person's bank. They are asked to provide all personal information about themselves and their account to the bank on the pretext of database upgradation. The number and password are then used to carry out transactions on their behalf without their knowledge.
2.
Hacking
Here, personal data is stolen through hacking. The fraudster needs to be an adept cyber criminal who can steal information stored or transacted in any computer. Sometimes, a spyware is installed in computer to gain access to all files.
3.
Here are some simple tips to prevent you from falling into the trap of cyber criminals. Remember, a simple ignorance or oversight can make a huge dent in your hard-earned savings. Avoid online banking on unsecured wifi systems and operate only from PCs at home. Never reveal password to anyone. Do not even write it on a piece of paper on diary. Just memorise it. It should be alphanemeric and change it frequently. Never reply to queries from bank online about account or personal details. The personal information should not be kept in a public computer or in emails.
4.
Always check the URL of your bank's web site. Fraudsters can lure you to enter your user ID and password at a fake website that resembles your bank. If you see anything other than the bank's genuine URL, it has to be fake. Never enter your user ID or password or such sensitive information without ascertaining that you are on the right website. Always type the Web address of your bank into the browser address space. Never click on the link in the email.
5.
Full-proof password
Change your online banking password at regular intervals. Also, avoid easy-to-guess passwords, like first names, birthdays, kid's or spouse's name and telephone numbers. Try to have an alpha-
numeric password, one that combines alphabets and numbers. If you have several bank accounts, never use the same online banking password for all. Never select the option on browser that stores or retains user name and password. As it can easily be cracked by cyber criminals. Also, never paste your password, always type it in. This little amount of `finger exercise' will go a long way in safety.
6.
Most banks have a 'last logged in' panel on their websites. If your bank has it, check the panel whenever you log in. If you notice irregularities (like you are logging in after two days, but the panel says you logged in that morning!), report the matter immediately to your bank and change your password right away. Always log out when you exit the online banking portal. Close the browser to ensure that your secure session is terminated. Never exit simply by closing the browser.
7.
Regularly check for security updates for your computer operating system. Most security updates are aimed at reducing risks to your computer, these may be data-related or otherwise. Make sure that your operating system and browser have the latest security patches installed. And, always install these only from trusted websites. Install a personal firewall to prevent hackers from gaining unauthorised access to your computer, especially if you connect to the Internet through a cable or a DSL modem.
8.
Don't leave the PC unattended after keying in information while transacting on the website. Avoid accessing your bank online at cyber cafes or on a share or public computer. Also, avoid locations that offer online connections through wireless networks (Wi-Fi), where privacy and security are minimal.
9.
Public PCs
Also, using Net banking services at cyber cafes leaves one vulnerable to data thieves. Another modus operandi adopted by cheats these days is stealing data from public computers or shared PCs. The fraud here takes advantage of unsecured cyber cafes. A police office says, "Sometimes, the cafe owners are hand-in-glove with the thugs."
CONCLUSION
More and more banks are coming to realize that internet is a part of banks' alternative delivery channel strategies activities concentrated in the business-to-consumer segment, focused on retaining clients In Internet banking, security is a primary concern. Security concerns have been addressed from every angle within the architecture of the Internet banking application Internet banking is now being widely accepted because of the following reasons:It accelerates the process of creating new markets It Reduces operational costs and workforce Checking with no monthly fee, free bill payment and rebates on ATM surcharges
It facilitates faster, easier and more reliable service to clients It helps in the development of Corporate image
Exceptional rates on Savings, CDs, and IRAs Credit cards with low rates Easy online applications for all accounts, including personal loans and mortgages 24 hour account access Quality customer service with personal attention The potential of E-banking is huge. With the increase in connectivity, the number of users
will explode, The strategy for banks is to provide value-added services to products to customers utilizing the Internet extensively. Web based banking service or E-Banking, the latest generation of banking transactions, has opened up new window of opportunity to the banks and existing financial institutions. Since its evolution in 90th decade, it is having unprecedented growth.
REFERENCES
www.ibkgintro.com www.google.com www.slideshare.com www.authorstream.com Banking in the new millennium By-S.Gurusamy Banking Theory By- K.C.Shekhar Lekshmy Shekhar