Most banks today use SMS as their second authentication. SMS is not solely widespread in the BFSI. Other sectors also rely on this authentication for many operations, such as restoring access, approving some actions, confirming device linking and so on.
For customers, their SIM card becomes a life key now that it is linked to all daily digital services, such as email, Google account, Apple ID account, Facebook, Twitter, and so on. It’s not a big deal if customers use SIM cards for access to social media. Only when customers use SMS to manage their
However, when customers use SMSs to manage their financial life, that's where problems arise.
To be clear, a modern "hacker" is not a lone individual wearing large spectacles. "Hacking" is a well-organized high-tech criminal enterprise with top executives, brain centers, performers, informers, and other personnel. The primary purpose of this company (like with other businesses) is to make money and expand.
Managers who are "hacking" realize that "real money" is kept in banks. Customers of a bank do, in fact, have remote access to manage and move money across accounts. As a result, all these hackers require is a tool to acquire access on behalf of a legitimate consumer. They are subjected to security checks here.
Assume that a bunch of hackers obtained (from someplace) the necessary credentials to gain access to a customer's account. It doesn't matter if it's payment card information, logins, or passwords for remote banking, or an account from a FinTech provider. They must pass a second authentication factor in order to transfer money. If a bank or FinTech provider uses SMS or push codes to offer services, they must be aware of this.
Let's take a look at how an SMS code may be intercepted and transmitted to the "hackers."
1. TechniquesHacker groups generate viruses and malware in this type of hacking. Spam, infected sites, bogus program repositories, keygens, activators, "hacked" purchased software, and other methods will be used to distribute this virus to client devices.
This virus gets access to the victim's SMS content after being installed on a customer's smartphone (particularly one based on Android).
2. TechnologiesWhen we speak of SMS, we are referring to a technology that was developed in the 1970s. The world had changed, and the security dangers had changed as well. It's amusing to think that lucrative SMS security risks started in 2017, just around the time they became the de-facto norm as a second authentication factor. Today, you can intercept any SMS in the globe with technology that costs under $1500. Independent researchers discovered a flaw in the SS7 protocol, making it conceivable. SMS messages are sent using this protocol. Googling "SS7 attack" can yield a wealth of information.
By the way, this sort of assault targeted a major German bank. You can also learn more about this event.
3. SocialThere are two key strategies in this mechanism: SIM switching and social engineering.
The customer will see that their sim card has been exchanged. Resetting your digital services and moving all of your cash from your bank account, on the other hand, takes only 10 minutes.
Of course, when a sim card is replaced, the mobile network operator can notify the bank. "IMSI check" is the name of this service. It is not free. Customers' risks are not something that many banks are willing to pay for.
Okay, we quickly and superficially discussed how "hackers" can intercept confirmation codes. We must understand that a portion of each stolen dollar (or rupiah, or baht, or yen, or won, or ringgit) will be spent on developing these mechanisms, such as developing more advanced malware, sending more spam, implementing SS7 interception within various ingress points, and hiring psychologists for social engineering scripts, among other things. "By design," SMS texts are not secure.
A couple of additional thoughts concerning legal perspectives worth mentioning.
This implies that SMS message codes are also not safe from a legal standpoint.
The internet, not cell networks, is used to send push codes. On the surface, it appears that they are more secure on a mobile phone. Actually, it's not true.
From a legal standpoint, there is no distinction between SMS messages and push codes.
As a result, these two technologies have the same level of security.
It is critical to give a better user experience to your clients in this era of digital transformation. When connecting with your services, the customer has the option of using the Internet or a mobile app, a kiosk, or face-to-face interaction. The most important goal is to provide an opportunity that is both straightforward and secure. Without a doubt, forcing your customers to utilize antiquated methods to confirm transactions, such as SMS OTP (one-time password), push notifications, hardware or software OTP generators, static PINs, or even scratchcards, is unworkable.
PayConfirm is an omnichannel solution, allowing you to authenticate any digitally produced transaction with a single tap. It's simple and safe, and you can do it directly from your mobile app. Whether the transaction was made through the Internet, on a mobile device, or at a kiosk, it will be validated on your mobile app with the greatest degree of security.
PayConfirm may be simply integrated into a banking mobile app or used as a standalone application.