[SECURITY ISSUES IN BANKIN SECTOR IN SRI LANKA]

by

ACKNOWLEDGEMENT

For this research, I would like to thank my family, friends and specifically my supervisor, for supporting and guiding me throughout my journey of learning. Without their support, it would not have been possible for me to conduct this research.

DECLARATION

I, (Your name), would like to declare that all contents included in this thesis/dissertation stand for my individual work without any aid, & this thesis/dissertation has not been submitted for any examination at academic as well as professional level previously. It is also representing my very own views & not essentially which are associated with university.

Signed __________________ Date _________________

Table of Contents

ACKNOWLEDGEMENTii

DECLARATIONiii

Introduction1

Background1

Problem Statement3

Purpose of the Study5

Research Aim and Objectives5

Research Question5

Significance of the Study6

Outline6

Literature Review7

The Internet7

The Online Services7

The E-banking Revolution and Safety8

Crimes and Countermeasure Strategies9

Information Technology and the Global Market10

Technology Based Banking Products and Services11

The Basic Online Options11

Electronic Bills11

One-stop Bank Shop12

Website Security and Threats13

Phishing Threat14

Online Security15

Literature Regarding Security Issues15

Bank Website Legal Requirements Challenges21

Online Financial Services Trust22

Discussion22

Key Technology Risks23

The Benefits Meet the Consequences23

Passwords and PINs23

Perpetrators and Viruses24

Wireless Worries25

Credit Card Fraud and Other Woes26

Security Issues27

Mobile banking28

SMS encryption29

SMS Spoofing Attack29

Virus Attacks in mobile banking30

Key Elements to a Security Plan30

Security Awareness30

The Customer31

The Bank32

Successful E-banking Strategies34

The Internal Banking Strategies34

The External Liability34

Technological Developments for Safety35

Authentication Techniques35

Encryption Techniques37

Identifiers38

Legislation39

Changes in Cyberspace Yield Changes in Laws39

The Legal Roadmap to Security39

Intellectual Property Rights and Cross-Border Regulation41

Consumer Protection42

Conclusion44

Critical Analysis45

Introduction

Background

Bank is considered as financial an institution which provides the financial as well as banking services to the customers. It is also considered as providing fundamental banking services which are related to providing loans and accepting deposits. Banks are also associated with system which provides cash management services for customers and reports their transactions and account portfolios. There are also certain non banking institutions which are involved in providing bank services ignoring the legal practices applied. Banks are considered as the subsets of financial industries and offer cash management services to the customers (Andoh et al, 2010, p. 36).

With the development of the Internet, more knowledge is accessible to people anywhere at any time. Transcending the traditional barriers of time and space, the Internet is redefining the world of banking. The Internet has created new methods for carrying out a variety of financial transactions through online banking and mobile banking. While the benefits of such advancements have been welcomed, there also have been drawbacks. Issues such as security, fraud, and theft have deterred people from participating in the Internet and e- banking revolutions. Furthermore, without the proper countermeasures in place to prevent malicious actions, users may find the prospect of Internet banking unappealing. The problem therein arises; with technology's revolutionizing effect on banking procedures, improper security measures prevent customers from enjoying the benefits. Furthermore, the security issue extends beyond simply deterring participation; it extends to the improper use and manipulation of the Internet for illegal gain and illegal activities. The problem is not isolated to a specific group of people, though it may be more prevalent in certain age groups, but everyone and anyone can be at risk from ...