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Mobile banking is one of the best developments that technology has brought with it. Financial institutions and business people constantly need to make transactions across states and countries. Mobile banking has made things a lot easier but has also raised concerns about security to ensure best practice. It is a revolution in the conservative world of payments.

With the ease of access, the ratio of fraudulent mobile banking transactions has increased. Therefore, there are certain best practices for mobile banking security people can put into practice for convenience.  Additionally financial and business institutions are being encouraged to comply with regulations imposed by the federal government in order to keep a check on transactions.

• USA Patriot Act: All financial institutions are obligated to ensure best practice by complying with this act. It is a law which requires banks and all financial institutions providing mobile services to implement proper identification of people availing these services. As best practice institutions are required to set off security protocols with test questions and authorization PIN codes. Additionally, change of phone numbers and addresses of people and organizations using mobile banking must be updated as a best practice.
• Regulations for Money Laundering: Implementation of Anti-Money Laundering Compliance Programs is a crucial best practice. The Bank Security Act (BSA)which was introduced in 1970 necessitates monitoring and preserving records for reference to customers’ criminal activities in banking. This act is also referred to as the Currency and Foreign Transactions Reporting Act. Therefore, it is a best practice required by all financial and banking institutions to preserve records of investigations, tax evasion, terrorism and any form of criminal activity of their clients. Any transaction exceeding $10,000 cash payment must be reported in the 8300 form and forwarded to the IRS. The use of Anti-Money Laundering Compliance Programs assists officers overseeing transactions and ensures that records are maintained in compliance with government protocols.
• Manage Liabilities and Risk Allocation: There is a need to negotiate liabilities and manage risk allocation by both financial institutions and mobile services. This is the best practice which requires both parties to secure their services and protect the interest of people using mobile banking. Financial institutions are expected to properly complete and close transactions including credit cards.
  There are guidelines and details that banks need to follow as best practice to protect themselves and the clients before issuance of credit cards, ATMs, etc. On the other hand, mobile service providers are only obligated to provide the mobile services. They have limited liability and banking security, and hence banking risks management is not solely their responsibility. They are however expected by law to utilize fraud detection measures to increase security to mobile services.

Therefore, compliance with mobile security regulations is a best practice required by any business and financial institution using mobile banking.

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