BackgroundMobile banking is a system that allows customers of a financial institution to carry out a number of financial transactions via a mobile device. There are three types of mobile services. SMS banking is the first mobile banking service. Through the mobile phone, users can view account balances, view recent transaction history, deposit checks, and locate a nearby ATM. Mobile online banking is another mobile service provided by financial institutes. In addition to SMS banking, customers can view pending transactions, transfer funds between accounts and pay their bills. The third type of service is the smartphone application which requires customers to download and install on compatible mobile devices. The basic mobile software framework includes the core, libraries, application framework, and finally applications. Memory management programs, security settings, device drives, and power management software are contained in the kernel layer. Libraries work as a guide that guides devices on how to handle data. The application framework manages the basic functions of the device. Mobile phones have increasingly become tools that consumers use for banking, payments and shopping. According to a new research report, mobile banking will reach 108 million users in the United States by 2017. This represents approximately 46% of all bank account holders. According to Figure 1, in 2013, 93% of mobile banking customers used their mobile to check their financial account. balances or view transactions. 72% of users have downloaded apps. 57% of users transfer money between their accounts via mobile banking. Figure 1 (http://www.federalreserve.gov/econresdata/consumers-and-mobile-financial-services-report-201403.pdf). However, in the 2013 Federal Reserve survey, about 50% of customers reject the...... middle of paper ......the major risk of e-banking:Controls:Risks are mitigated through controls. As mentioned earlier, mobile banking presents many risks, but these can be mitigated to an acceptable level by applying appropriate controls. There are three types of controls: preventive, detective and corrective. Preventative controls, for example, are access controls that allow only authorized individuals to access systems. These prevent unauthorized users from accessing the system. Detection systems track and monitor the system to detect any unusual instances or events that could pose a potential threat. These outliers are then reported to the appropriate manager for further verification. Corrective controls are put in place to act once an incident has been identified and addressed. Here are some of the few controls that help mitigate mobile banking risks.