Technology brings security risks

Technology has opened up new markets, new products, new services and efficient delivery channels in the banking industry.

Name them; online electronic banking, mobile banking, points of sales (POS) and internet banking amongst others.

The momentous growth in technology comes with its share of challenges as well.

Today, security issues are a major source of concern for everyone both inside and outside the banking industry.

E-banking has increased the risks two-fold - at times exposing hitherto isolated systems to open and risky environments.

Traditionally, the major security headaches for businesses included shoplifting, employee crime, and burglary.

With the massive developments in the information technology, more sophisticated products are gracing the market but in the same measure so are the fraud cases. We can belittle any form of business security issue.

In fact Timothy Muriuki, the chairman, Nairobi Central Business District Association (NCBDA), captured the mood well when he said, “”NCBDA is concerned that members have to make unnecessary investment in security like hiring more watchmen and installations instead of reinvesting funds to create more jobs.”

The challenge for business security is to fully and effectively identify all of the risks.

Recently, Equity Bank announced it has installed Europay-Mastercard-Visa (EMV) technology in its Automated Teller Machines.

This is meant to enhance the security of the card holders and wipe out the ever increasing number of “e-fraudsters” I’m advised that this EMV card contains a small computer chip, which offers greater memory capacity and improves security for consumers by making it nearly impossible for crooked people to corrupt it.

Early this year, a man was caught trying to perpetuate a fraud in one of local bank’s ATMs and in his custody was a pack of more than 100 bank cards.

As an ardent enthusiast of the point of sales popular with local banks and supermarkets, it worries me.

These POSs are anywhere and everywhere- even the least you expect them making banking flexible and very accessible.

If the figures attributed to the CBK’s Banking Fraud Investigation Department are true, we need to be cautious.