Business Management Dissertation

Mobile Banking revolutionized the way people do banking. Technology has brought the ease of doing a financial transaction to the finger-tips. However, this radical developmental has also lead to great negative impacts on the customers due to security issues. This study seeks to investigate the Security Issues in Mobile Banking System of the Maldives and its Effect on Customers.

With the existing literature that demonstrates the Mobile Banking and security issues and measures to counter, the study will use Meta-analysis to bring a statistical solution to fill the knowledge gap in the context of the research. Moreover, existing models will be critically reviewed to find solutions to the research questions and achieve objectives of the study.

Contents Executive Summary 2 List of Figures 4 List of Table 4 1.0 Introduction 5 1.1 Area of Research 5 1.2 Research context 5 1.3 Scope of the study 6 1.3.1 Research Question 6 1.3.2 Research aim 7 1.3.3 Research Objectives 7 1.4 Rationale of the Study 7 2.0 Literature Review 8 2.1 Model of E-Fraud 8 2.2 Bio-metrics model for authentication 9 2.3 Literature Review Summary 9 3.0 Research Methodologies 10 3.1 Research Philosophy 10 3.2 Research Approach 10 3.3 Research Design 11 3.4 Research Instruments Data Collection Methods 11 3.5 Data Analysis Method 11 3.6 Ethical Issues 11 3.7 Expected Sources of Information 12 4.0 Potential Outcomes 13 4.1 Research Plan 13 5.0 Reference Cited 14 6.0 Bibliography 15

Figure 1. E-Fraud Model …………………………………………………… 8

Figure 2. Bio-Metric Model for Authentication …………………………………… 9

Figure 3: Research Approach ……………………………………………………………10

Figure 4: Research Design …………………………………………………………….11

Figure 4: Gantt Chart ………………………..…………………………………………13

Security Issues in Mobile Banking System of the Maldives and Its Effect on Customers

The technological advancement and the innovative trends that endures to coerce the way of banking is perhaps convenient and bringing customers more nearer to the banks. These groundbreaking innovations has led to the establishment of Mobile Banking where services have been brought to the finger-tips of the customers all over the world in a very short span of time. The advantage of technology is also abused by various hackers and other cyber criminals. Thus, bringing the security issue as a threat in using Mobile Banking Systems that have a direct impact on customers.

The chosen area for research for this study is “Security Issues in Mobile Banking System of the Maldives and Its Effect on Customers”.

At this age of technology, robbing banks by using weapons and physical force has almost become fictional. Cyber fraud or E-frauds, Identity theft and phishing are common crimes committed in stealing funds from bank accounts (Belcher, 2004). Furnell and Evangelatos (2007) has argued that degree of trust among the mobile banking customers diminishes as E-fraud usage occurs due to unauthorized transactions. Similarly, they have also argued reliability is an important factor determining the trust between the mobile banking system and communication between the mobile device during transaction (Furnell and Evangelatos, 2007).

In this context, the Maldives is not detached from the identified problem and the Maldives Police has reported more than 65 cases and theft of more than half a Million Ruffiya (Maldives Independent, 2017). Thus, security threats posing a significant threat on customers.

Maldives, even though have a population less than a mere 400,000 people dispersed into over 200 islands, adapting to the revolutionizing technology is fast and quick. According to the Communications Authority of Maldives (CAM, 2019), total mobile subscribers in the Maldives amounts to 839,528 depicting 1:2 in mobile subscription. In addition, CAM (2019) also has published that there are 90,237 fixed broadband subscribers and 266,495 mobile broadband subscribers. Bank of Maldives or the national bank in the Maldives introduced the vital service of Mobile Banking service to its customers in July 2015, with the launch of its new Mobile Banking Application available for use on Apple and Android smartphones (Aramudhan, 2008).

However, with the growing trend of technology many individuals are still not using Mobile banking and opt to go for the traditional retail branch banking. The reasons are unknown to the banks as to why people do not want to adopt internet banking. This remains the case in many other countries as well.

With the increase in technology currently Bank of Maldives (BML), HSBC, State Bank of India (SBI), Maldives Islamic Bank (MIB) and Bank of Ceylon (BOC) has adopted Mobile banking in the Maldives. According to Harb, Farahat and Ezz (2008) Banking via mobile is changing lives of people all over the world whereby they can make banking transaction 24 hours a day wherever they are. It has added up to the convenience of adapting to new technologies. Furthermore, it has helped many people who are too busy and have no time to visit traditional bank branches and make transactions. Using mobile banking has many advantages for users such as saving time and the accuracy of information flow.

This study intends to study the Security Issues in Mobile Banking System of the Maldives and its Effect on Customers.

This study will focus on the security issues in the Mobile Banking System in the Maldives on the one hand and its impact on customers on the other hand. Security issues describes the existing cybercrime techniques like phishing attacks, E-fraud, virus attacks, spoofing and etc.

What are the Security Issues in Mobile Banking System of the Maldives and its Effects on Customers?

The study will further try to investigate the following;

· What are the security issues in Mobile Banking System in the Maldives?

· How reliable is the current Mobile Banking System with reference to security in the Maldives?

· What are the effects of security issues on customers?

Through various models based on the literature, this study will insist to find out the most fragile area in Mobile Banking and how that threat could be minimized to increase the trust and reliability to the Mobile Banking System in the Maldives.

The objectives are subjected to change as the research progresses.

· To analyze the current Mobile Banking System.

· To identify the security issues in Mobile Banking System.

· To assess the reliability of the current Mobile Banking System with reference to security.

· To examine the effect of security on customers.

Literature survey reveals that there are models that would allow to understand the context and mechanics of E-fraud. Therefore the basis of this study will be to examine one of the models that will help to build the trust in Mobile Banking and minimize risks and effects on the prevailing security issues.

Various literature and models are available on the security issues of Mobile Banking and its effect on customers. Aramudhan (2008) has revealed that User Assigned Security Policy Framework for m-commerce Applications increases its security levels from both the user and server side to increase the reliability. Similarly, Bangdao and Rosco (2010) has argued that increasing the Mobile Electronic Identity through biometrics secures payment on Mobile phones. In 2016, A.S. Bhatt has identified the factors Affecting Customer’s Adoption of Mobile Banking Services. Furthermore, Lee and Chung (2009) argued that a Developed Information System model would increase customer satisfaction and reliability on the Mobile Banking services as payment transactions are made without any human contact.

A study conducted Amola (2016) to analyze the factors affecting customer’s adoption of Mobile Banking Services revealed demographic, attitudinal, and behavioral characteristics of mobile bank users are interconnected, but security issues were not addressed. In another study by Palani (2012) to examine customers perception towards Mobile Banking in Indian Overseas Bank Chennai identified the causative factors so that mobile banking can be used by more people to make banking operations more cost effective.

However, one of the compelling model on E-fraud which is relevant to this study was formulated by Malakedsuwan and Stevens (2003) identifying key elements that describes E-fraud and effective counter measures to increase customers trust.

E-Fraud Model of Malakedsuwan and Stevens (2003) focuses on five key elements to exhibit a reliable model to identify and examine e-fraud and its impact. The model is illustrated below with the key elements.

Perpetrator