01-09-2014 11:06 AM
A researcher has discovered several security vulnerabilities in 40 personal banking apps from 60 of the world's biggest banks.
For example, a user could be lured to a fake login page and told that their online banking password had "expired", and asked to re-enter their username and password in order to access their account. The hacker could then use those details to take control of the user's online banking account.
While the names of the banks have not been revealed, a map on the researcher's blog reveals that the apps come from banks in the UK, eastern and western Europe, Singapore, Australia, India, the Middle East, Canada, the US and parts of South America.
Seize control of victim's device
Almost half of the apps tested do not validate the authenticity of SSL certificates being presented, which means that these apps can be susceptible to Man in the Middle (MITM) attacks, whereby network traffic is hijacked from its original destination and sent to another server.
Also, at least 70% of the apps did not have any back-up authentication methods if the first method failed, such as multi-factor authentication. The researcher also found that the apps generated logs of crash reports containing sensitive information that could easily be stolen by hackers and used to develop zero-day attacks.
"Home banking apps that have been adapted for mobile devices, such as smart phones and tablets, have created a significant security challenge for worldwide financial firms," said Sanchez in a blog about the vulnerabilities.
"As this research shows, financial industries should increase the security standards they use for their mobile home banking solutions."
Potential "massive" malware infection
Sanchez disassembled the banking apps and made a startling discovery in the code in the apps.
In a worst-case scenario, he writes, "an attacker could gain access to the development infrastructure of the bank and infest the application with malware causing a massive infection for all of the application's users."
Sanchez has contacted the banks affected by the vulnerabilities and has issued the following recommendations on what banks should do to better protect their mobile banking apps: