It is very convenient to have a banking app on a smart phone or tablet, but one should be careful about fake apps. Android phone owners began downloading banking app for Android market an year ago. These apps cost them only $1.50 each and connected users with more than 30 banks. However there was only one problem, the banks did not put them there.

The apps were created by a developer known “09 Droid”, his real name still remains unknown. When the fraud was discovered, the apps were removed by Google from the Android market, but many have downloaded the apps already. The app was built to get $1.50 from each user. Still the threat of hacking bank account, passwords was so obvious that banks had to warn their customers to tell their service providers to remove the app from their phones.

Mobile banking needs to be safe, so follow these simple precautions:

 

Before you download a financial app.

  • Consider the App store: Different app stores have different standards about the apps they let users download. Google’s Android market allows apps from 3 party, whereas Apple’s app store accepts them only after rigorous testing. Apps can be just be published to Android market, while Apple goes through the entire code base and every feature is tested. Users must be careful when downloading bank or financial apps from Android market. One alternative is download these apps directly from the financial institution’s own website.
  • Check the Source: if you are downloading a 3 party financial app, you have to check the sponsoring company or the website of the developer. Search for the page “about us”, a privacy policy, news page and external links to the articles about the company. Search about the owner of the domain. Check if the site is spelled correctly and clear or not.
  • Check  reviews:  Mobile application markets post real user reviews and testimonials. Look for a huge number of reviews, as small numbers could be fake, may be posted by the developers itself.  Search about the apps on social networking sites like twitter and facebook. If there are not many reviews about the app, do not take the risk of being the first one to try the banking app.
  • Try a bookmark for starters: before you download a banking app, find if you really need a online banking app. To find it out, access your bank from your phone browser. If  it has a user friendly mobile interface, then it might work fine like an app. If you are using a tablet then the regular website will work good for you. If you are planning on treading this path, it will be a smart thing to do by creating a bookmark, for avoiding the risk of entering your details on a spoof site and also for convenience.

After you have a financial app

  • Protect your device with a password: financial apps on mobile are gaining immense popularity, however it poses a risk of financial disaster if you lose your tablet or phone. So, protect your phone with a password so that no one can access your accounts. Do not store the password as you will risk the account hacking if you lose your phone.
  • Learn how to wipe your device remotely: If you ever lose your phone or if it is stolen, you should immediately wipe it and restore your phone to its factory state. Windows, iPhone, blackberry phones come with this capability and you must download apps that come with this capability too. Whatever phone you are using you must learn how to remotely wipe your phone in case it is lost or stolen. You must not waste your time waiting for a support line that will provide you info on how to do it after you lose your phone.
  • Never use a Wi-Fi  hotspot for Banking: Most of the tablets and smart phones can use wireless internet. Take care that you never use the public wireless hotspots for using banking or any other financial app at public places like airports, hotels etc. Hackers can easily access your info through these public Wi-Fi spots. Most of the banking sites are encrypted but it might not be enough to prevent a hacker from collecting info about your account and you will not even know anything about it.
  • Be cautious of your phone’s functioning changes: If you have downloaded an app and your phone has started acting weird, responding slowly to commands or the battery is draining faster than normal, then all these signs are indicative of a malicious code. Remove the app as soon as possible to restore your phone to normal behavior.

Follow these simple tips to stop the banking or a financial app fraud and safeguard your finances.