IT Banking

Advantages and Disadvantages

Advantages

• IT banking is faster and more convenient for the user as they no longer are required to be at the bank.

• IT banking is more efficient, allowing users to transfer funds at a much higher speed then traditional transactions.

• The user is also given the ability to manage more then one bank account.

• The user has the ability to manage assets more effectively.

Disadvantages

• IT banking has more security issues due to spyware (key loggers) and hackers.

Examples of the security problems of online banking

• In 2004, 12 million Americans each had on average $1,200 stolen. Amounting to a total of over $2 billion in losses.

• 8.9 million Americans fell victim to identity theft in 2003. An average of $5316 a person was stolen.

EFT- What is it?

An Electronic Fund Transfer (EFT) is a process whereby money is transferred from one place to another electronically

Advantages of EFTs

• The EFT procedure is a quick and efficient way to transfer money from one account to another.

• Once funds have been paid into an account using this procedure, it should be available immediately.

• If you are earning a salary then the funds may be added to your account automatically. It also allows for the use of automated tellers and the use of debit cards for the payment of goods and services.

Dis-advatages of EFTs

What is EFT POS?

What is EDI?

Phishing, hacking and Cloning

Phishing

• Phishing is the criminally fraudulent process of attempting to acquire sensitive information such as usernames, passwords and credit card details by masquerading as a trustworthy entity in an electronic communication

• The main form of phishing is through emails, which directs users to fake websites impersonating trusted sites, such as a bank’s website. It will then prompt the user to enter sensitive information such as their account number and password.

• Phishing now includes various scams such as the creation of fake websites, installation of Trojan horses by key loggers and screen capture.

Cloning of Credit Cards

• The cloning of credit cards involves the use of a pocket sized device which resembles a