E-banking (Essay Sample)

E-banking
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Strong Verses Weak Authentication and Its Ramifications on e-banking
Following the development of modern technologies such as computers and internet, many services are today offered instantly through electronic means. This is what is known as ‘e' and covers areas of business, banking, and finance. E-banking therefore is an online banking service, a process allowing customers and banks to conduct their financial transactions through a website believed to be secure and is operated a virtual or retail bank. The transaction process is usually done electronically (Kondabagil, 2007). However, the issue of security remains a very big concern especially with increased cyber-crimes. This call for authentication processes which verify that an individual is who he claimed to be.
The solution has therefore been in having authentication processes whenever carrying out any online banking. It is mandatory for financial institutions to offer their consumers with maximum security for protection (Kondabagil, 2007). This is what is known as strong authentication. This will be a form of security as the debit cards used whenever doing shopping. Strong authentication means two (or even more) identity types for verification before transaction is initiated. Once this is applied, lesser consequences will be realized from the banking problem and instead improve security offering and guarantee better services to all clients. However, it is notable that online e-banking primarily operates with only one single but weak authentication factor: password. This can be seen a weak authentication.
It has been widely debated that we can have a second authentication factor but this might not reduce the risks. Threats and risks will not disappear but will evolve in an attempt of overcoming the defenses put in place (Kondabagil, 2007). Strong authentication is app...