[February 27, 2017] |
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Infiniti Research: Increased Risk of Fraud Encouraging Use of Advanced Banking Security Solutions
ATM
technology is set to evolve as banks begin to allow ATM access
from customers' phones and other mobile devices. Banks must invest in
more advanced security systems and ensure secure access in order to
prevent fraud and keep clients' funds safe. According to Infiniti
Research, the market for ATMs and associated technologies will
grow at a rate of more than 8% until 2020.
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Infiniti Research offers a variety financial services market research solutions. (Graphic: Business Wire)
At present, wireless and mobile ATM technology is mainly being
implemented in the Americas which, according to Infiniti Research,
account for more than 60% of the global ATM market. It is most common in
the US where major banks like JPMorgan Chase are testing the technology
and slowly rolling it out across the country. At present, JPMorgan Chase
is using mobile ATM technology on over one hundred machines in four
American cities. Other American banks, including Bank of America and
Wells Fargo (News - Alert), intend to implement the technology by the end of the year
at the latest.
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The option for cardless ATM withdrawals is made possible by the use of
near-field communications (NFC) technology. Most smartphones contain an
NFC chip-newer iPhones, for example, use NFC technology for Apple
Pay. When incorporated into ATMs, NFC allows customers to
tap their phone, enter their banking credentials on a compatible app,
and receive their money from the machine, all without putting in their
account's pin number.
Though this new banking option increases customers' convenience, it also
increases the risk of fraud. Skimming, which is the practice of
installing malicious hardware or equipment on an ATM for the purpose of
stealing card numbers and money, is made easier through mobile ATM
technology as banking usernames and passwords can be extremely
vulnerable to hackers. Those with malicious intent could enter other
people's credentials on a smartphone and have easy access to funds. To
combat this and to allow this technology to benefit customers rather
than put their assets at risk, banks are investing in advanced
security solutions and technologies for their ATMs. For example,
Chase, after a security incident in which almost USD 3,000 was stolen
from a customer via cardless banking, have upgraded their ATM security
technology, as well as their ability to identify and deter hackers and
other threats.
To properly identify threats to customers' funds and banks as a whole,
financial institutions must have a thorough understanding of the ATM
technology market, including potential threats and how they can be
prevented against. Infiniti Research's market
intelligence services can help you to identify these threats,
what advanced solutions you should use to protect your customers against
them, and what the future for ATM technologies holds. Infiniti Research
can also assist you with developing sophisticated security strategies to
ensure long-term safety and success for your business.
How can Infiniti Research help you? Request
a brochure
About Infiniti Research
Established in 2003, Infiniti Research is a leading market intelligence
company providing smart solutions to address your business challenges.
Infiniti Research studies markets in more than 100 countries to help
analyze competitive activity, see beyond market disruptions, and develop
intelligent business strategies. With 13 years of experience and offices
across three continents, Infiniti Research has been instrumental in
providing a complete range of competitive intelligence, strategy, and
research services for over 550 companies across the globe.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170227006517/en/
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