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Hye-Jin Heo Professor Dennis Wilson Economics 2020 1 May 2014 Electronic Banking People are living in a smart age. It changed method of banking services. People can use banking services in different ways if people do not take documents and cash, and meet bank teller at bank branch. It is called Electronic Banking. According to Dictionary.com, Electronic Banking defines that a bank account maintained by computer and telecommunications links rather than physical transfer of cash, checks, or other negotiable instruments. In Wikipedia, Online Banking (or Internet Banking or E-banking) allows customers of a financial institution to conduct financial transactions on a secured website operated by the institution, which can be a retail bank, virtual bank, credit union or building society (Online Banking). People use electronic banking at home, work, anywhere if they have a smartphone. The electronic banking is very convenient in life, however, it has riskiness. Therefore, it is important to know safe ways to use it. There are what kind of electronic banking people can use, merits of electronic banking, and safe ways to use electronic banking. Electronic banking can be classified into three sections: Telephone Banking, Internet Banking, and Mobile Banking (KAI). Before using these services, must a customer first register

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with this institution for any services of electronic banking. Customer should set up some work for banking services. What is Telephone Banking? Santander Banks Customer Service answers that, telephone banking is an automated service that allows you to access your account information and perform routine transactions from a touch-tone telephone (What is). Telephone banking provides services that checking current balances, transfer, or etc. Customers can financial services over the telephone, without the need to visit a bank branch or automated teller machine. Telephone banking times can be longer than branch opening times, and some financial institutions offer the service on a 24 hour basis (KAI). Most people know and use Internet Banking. Internet Banking allows customers of a financial institution to conduct financial transactions on a secure website operated by the institution, which can be a retail or virtual bank, credit union or society (KAI). It provides these services that are account management, deposits and payments, debit card, and electronic statements. Internet Banking is a quick and very convenient way to manage money. Customer can check current balance and balance history, initiate transfers between accounts, view account activity, order checks, and view check images. Internet Banking is possible to set up automatic payments. It is an easy way to pay recurring bills like utility payments and insurance premiums. Also, interestingly, debit cards are one of the most common types of internet banking transactions. When people use a debit card, information is put into a computer system and then transmitted online to customers bank. Electronic statements are regular bank statements made available online. It is guarded by electronic safeguards, so it is safer than a paper statement (Yoder).

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Mobile banking is newest baking system. It is one step forward advanced electronic banking than internet banking. Mobile banking is used services through a mobile device such as mobile phone, Personal Digital Assistant (PDA), or smart phone. It provides same services like checking current balance, account transactions, payments, and credit application. It based on Internet, but it is different using on the move and everywhere from internet banking. The greatest advantage of electronic banking is that it is convenient to use. Electronic banking more save time and is less limited to location than going bank branch. Also, it is high merit for banks. Banks do not need to establish lots of branches because many people use electronic banking. Banks can retrench expenditure of a branch establishment and provide more convenient service through development of electronic banking service. Also, it may increase revenue through service fee and solve problems such as cost saving, building up retail finance, and creating new profit source. Electronic bank fraud victim is increasing for expanding electronic banking. Electronic bank fraud is divided three parts. There are Voice Phishing, Pharming, and Smishing. Voice phishing is the criminal practice of using social engineering over the telephone system to gain access to private personal and financial information from the public for the purpose of financial reward (Voice Phishing). Pharming is another scam where a hacker installs malicious code on a personal computer or server. This code then redirects clicks you make on a Web site to another fraudulent Web site without consent (Phishing). Smishing uses cell phone text messages to lure consumers and the text contains an URL or phone number (Phishing).

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How can we prevent electronic bank fraud? There are some ways for it. First of all, do not respond to a request of financial transaction information. If someone who is anybody ask or demand to type on the internet your financial information such as accounting number, routing number, card number, or internet banking by call, or same or other ways, you do not respond that. Even if someone who already know your personal information or financial information must grasp the truth about that. As far as possible, it is better checking financial information every day. Also, never lend your any account and card such as debit and credit card. Intuit which is an American software company that develops financial and tax preparation software and related services for small businesses, accountants and individuals (Intuit) suggests safety ways for electronic bank. Follow the basic computer safety guidelines in protect computer. Also, be careful when entering financial information on a Web site. Look for the key or lock symbol at the bottom of the browser. If the web site looks different than when last visited, be suspicious and do not click. If you receive an email or phone call asking you to call and you suspect it might be a fraudulent request, email or call the customer service asking whether the number or email is legitimate. Also, in many cases, the smishing message will come from a 5000 number instead of displaying an actual phone number. Do not respond to the messages (Phishing). People often use telephone, internet, and mobile banking in daily life. This internet banking is very convenient to use. However, it has the risk of the leaking of private or financial information. Therefore, it is important to use safety ways that government, software companies, bank or like these suggest.

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Works Cited electronic banking. Dictionary.com's 21st Century Lexicon. Dictionary.com, LLC. Web. 25 Apr. 2014. <Dictionary.com http://dictionary.reference.com/browse/electronic banking>. Intuit. Wikipedia. Wikimedia Foundation, Inc. 28 Apr. 2014. Web. 30 Apr. 2014. <http://en.wikipedia.org/wiki/Intuit>. KAI of the SHARINGAN. Types of E-Banking iamshadman WordPress.com. Web. 25 Apr. 2014. <http://iamshadman.wordpress.com/2013/03/24/types-of-e-banking/>. Online Banking. Wikipedia. Wikimedia Foundation, Inc. 10 Apr. 2014. Web. 25 Apr. 2014. <http://en.wikipedia.org/wiki/Online_banking>. Phishing, pharming, vishing and smishing. Intuit. Intuit Inc. Web. 26 Apr. 2014. <https://security.intuit.com/phishing.html>. Voice Phishing. Wikipedia. Wikimedia Foundation, Inc. 23 Apr. 2014. Web. 26 Apr. 2014. <http://en.wikipedia.org/wiki/Voice_phishing>. What is Telephone Banking? Santander. Santander Bank N. A. Equal Housing Lender Member FDIC. Web. 25 Apr. 2014. <https://customerservice.santanderbank.com/app/answers/detail/a_id/203/~/what-istelephone-banking%3F>. Yoder, Scott. Types of Online Banking. eHow. Demand Media, Inc., Web. 26 Apr. 2014. <http://www.ehow.com/list_6076256_types-online-banking.html>.