Security risks to online banking and ecommerce

The global nature of the Internet has opened many back-doors for fraudsters and hackers and has provided every mean for them in creating new modes of frauds and similar behaviours. However, the objective behind such efforts could be varied from profit-making scams to the simple proving of their ‘talent’ by breaching a system. Well, what ever the motive might be, the expenses are massive for any company.
Today, due to open nature of Internet, many online criminal communities and groups have been formed, hence, providing criminals easy way for not only getting ‘tips’ for their unhealthy activities but also ‘hints’ for their new innocent targets. The cyber-criminals use these forums to gain information on vulnerabilities for existing as well as new security and risk-management policies and formulate their criminal strategies.
Such cyber-crimes are always going to exist, as long as companies and people continue to exchange valuable data over the Internet, theft and other forms of online fraud will proceed to grow. It was reported in&nbsp. the Digital Resolve (2008) that Any company — including those in the financial services, brokerage, e-commerce, insurance, government and gaming industries and are&nbsp. invested in protecting online accounts and communications needs to take swift action and prepare for the worst case scenario. But when, there is a will, there is a way. of course, we cannot prevent cyber-crimes from occurring but we can make the criminals efforts worthless….
ularity of cyber-crimes is the secrecy of the cyber criminal as compared to physical theft because the location and physical whereabouts remains anonymous most of the times in the first instance. Even though, many online-businesses have nowadays implemented strong technologies that monitor their networks against suspicious activities but this does not guarantee that hackers will not succeed and most of the times, it is too late to know as heavy damage has already been done.
Electronic commerce, especially in the form of online banking, poses many security risks that are specifically involved when trying to operate as an online-business. According to recent surveys, the number of destructive applications, that specifically target internet transactions, have considerably increased, which is very alarming for users of the internet banking services as well as the financial institutions that are offering these online banking facilities.
It is not only I.T security risks that are involved with online banking services but there are many other issues that collectively play a part in any fraudulent activities and all these issues must be addressed by every online banking service provider through the proper risk management controls.
In this report, various types of risks that are specifically related to online-banking are discussed. Moreover, different types of online attack methods and tools have also been overviewed as well as the remedies to managing and avoiding such threats.
ACKNOWLEDGEMENTS
Above all I want to express my gratitude to my university studies which has enabled me to translate the mere idea of my project report into its physical form and has helped made it possible for me to complete the report in the desired way. It is because of the knowledge I have

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