DAVENPORT, Iowa-As more members bank by mobile phone as well as by personal computer, Credit Union Journal asked CUs: which approach poses the greatest risk?
"Personal computers offer much more data-stealing potential than mobile phones," suggested Kris Lundquist, VP-marketing at $95-million The Family CU here, which offers members all three mobile banking modes.
"Most people still don't do a good job of securing their home PCs, which are probably an easier target than mobile devices," agreed Matt Fagala, application support manager at Vantage CU, Bridgeton, Mo. "It's much easier to dupe someone into installing a piece of malware or respond to something on a PC than on a mobile device. Malware and keystroke loggers for home PCs are likely to provide a better payout for scammers. And there are simply more PCs out there."
"Internet banking features are more robust than mobile banking, so they have the greatest capability to do damage," continued Victor Smilgys, AVP-eCommerce at Technology CU, San Jose, Calif. "For instance, even though bill pay can be accessed via mobile banking, most institutions don't allow consumers to create new payees.
"Mobile banking actually can help deter some fraud, as it allows the consumer to easily check their account status and notify their institution faster when they see suspicious activity," Smilgys added.
It's true that mobile phones "are more likely to be lost than desktop computers," suggested Jim Armstrong, SVP-technology of OnPoint Community CU. "On the other hand, you may use multiple computers for online banking but most likely one mobile phone, so it is easier to flag potential illegitimate access."
Neches FCU has a slightly different take: "Although I'd say the majority of consumers are educated enough to do a quick check of what they are downloading on their personal computers, for some reason, there's a disconnect when it comes to other electronic devices," said Jason Duplant, marketing director.
