Metaforic Alerts Financial Institutions to Increasing Security Risks Emerging from Mobile Financial Applications
SAN JOSE, Calif., July 31, 2012 /PRNewswire/ — Metaforic, the innovative software security company, today released an alert to banks and financial institutions on the increasing security risks emerging from the accelerating acceptance of mobile financial applications by smartphone users. With smartphone and tablet sales outpacing desktop and laptop PCs, cybercriminals increasingly are attracted by the potential financial gains made possible by diverting funds through mobile financial applications.
The rapid increase in the adoption of banking apps by smartphone users is fueling growth in mobile financial transactions. The Yankee Group projects up to 500 million people will use mobile banking services by 2015, with mobile transactions exceeding $1 trillion in value worldwide. Gartner estimates more than $170 billion in mobile transactions for 2012.
“The meteoric rise in smartphone and tablet use for financial transactions has far outpaced the ability of information security vendors to protect customers’ mobile devices against the rapid rise in malware and hacker attacks,” said Dr. C. Warren Axelrod, recognized thought leader in information security and risk management in financial services and Metaforic Advisory Board member. “As they install more and more mobile financial apps, enabling credit-card purchases, bank and brokerage transactions, and other financial activities from virtually anywhere, customers are exposed to account takeover and identity theft by enterprising hackers. This results in financial losses for the banks and great inconvenience for customers whose accounts get frozen and credit and debit cards are reissued. Consumers are faced with weeks and months of distressing calls to banks, retailers and credit agencies to resolve such incidents.”
Metaforic security experts have identified a variety of “man-in-the-middle” exploits that allow hackers to gain control of smartphones and user bank accounts to divert and steal funds. Once gaining control of the phone, the hacker can steal private data and release additional malicious code to be able to steal from more victims.
“Wherever you find opportunities to make money, whether through mobile or online transactions or from cyber espionage and identity theft, you will find cybercriminals and hackers inventing ways to line their pockets – and now they can do that from anywhere,” said Dan Stickel, CEO, Metaforic. “Banks and their customers should take steps to protect against malware and hackers who are increasingly targeting Android and iOS mobile apps, to prevent security breaches and potentially devastating losses and liability. Metaforic enables application developers to immunize their mobile, embedded and online applications to prevent hackers and malware from diverting funds and harming consumers and institutions alike.”
Recent smartphone security announcements, such as the enhanced encryption and other security features included in Android Jelly Bean, still fall short of the level of security needed to prevent exploits from changing mobile apps and penetrating security defenses.
For any bank or financial institution, Metaforic can serve as a resource for locking down mobile financial applications to prevent hackers from using the applications to steal from customers and defraud the banks. Metaforic also can explain the process for immunizing mobile financial applications before offering them for download from App Stores, protecting the bank and the customer from fraud, identity theft and other crimes.
For more information, visit: http://metaforic.com/
Metaforic is a leading provider of security software for anti-subversion protection. Metaforic technology protects virtually any software from subversion, theft, piracy, tampering or other corruption. It is proven in millions of deployed instances, from consumer software to business devices. Only software protected by Metaforic earns the Mark of Security distinction. Offices are located in the United States, EU and Japan. Further information is available at www.metaforic.com.
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