Security and privacy of electronic banking by

Individuals and Technology: 
In order to provide effective and secure banking transactions, there are four technology issues 
needed to be resolved. The key areas are:
1.
Security
Security of the transactions is the primary concern of the internet-based industries. The 
lack of security may result in serious damages such as Posta Pay frauds. This section will 
be discussed in the next section.
2.
Anonymity (Privacy) 
By strengthening the privacy technology, this will ensure the secrecy of sender’s personal 
information and further enhance the security of the transactions. The examples of the 
private information relating to the banking industry are: the amount of the transaction, the 
date and time of the transaction, and the name of the merchant where the transaction is 
taking place. This section will be discussed in the next section. 
3.
Authentication
IJCSI International Journal of Computer Science Issues, Vol. 9, Issue 4, No 3, July 2012 
ISSN (Online): 1694-0814 
www.IJCSI.org
437
Copyright (c) 2012 International Journal of Computer Science Issues. All Rights Reserved.

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Encryption may help make the transactions more secure, but there is also a need to 
guarantee that no one alters the data at either end of the transaction. There are two 
possible ways to verify the integrity of the message. One form of verification is the 
secure Hash algorithm which is “a check that protects data against most modification”. 
(Pfleeger et al. 1997). The sender transmits the Hash algorithm generated data. The 
recipient performs the same calculation and compares the two to make sure everything 
arrived correctly. If the two results are different, a change has occurred in the message.
The other form of verification is through a third party called Certification Authority (CA) 
with the trust of both the sender and receiver to verify that the electronic currency or the 
digital signature that they received is real.
4.
Divisibility
Electronic money may be divisible into different units of currency, similar to real money. 
For example, electronic money needs to account for pennies and nickels.