IEEEUPI Based Mobile Banking Applications – Security Analysis and Enhancements


Abstract: Technology advancements have reduced the cost of both a mobile device and data connection making it affordable to all. In parallel, mobile applications are also rising providing the quick, easy door-step solution(s) to one’s professional and personal requirements. In the current trend of the digital and cashless economy, mobile-based app solutions are easy to use and ubiquitous, facilitating a wide range of banking financial services (pay/collect money etc.) and non-financial services (cheque request, account balance, view transaction history etc.). Mobile app revolution is also accompanied by many known and unknown security risks. Out of the various mobile banking applications, UPI (Unified Payment Interface) based apps are simple, reliable, centrally certified (by NPCI (National Payment Corporation of India)) and more secured. Study of UPI apps revealed the possibility of further security enhancements utilizing technological advancements to detect cybercrimes and fraudulent mobile transactions. Code Shoppy This paper discusses UPI based mobile apps (architecture, transactions, features and security issues) and information security enhancement proposals w.r.t authentication and authorization.  
Keywords: Mobile Banking; Security; Application Security; Information Security; UPI; USSD; Authentication; Authorization; Encryption; Financial Service 


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I.INTRODUCTION 
Mobile Banking service allows end user to perform remote banking transactions (both financial and non-financial) from his/her current location using the hand held mobile device anywhere-anytime. A variety of technology specific mobile banking solutions like IMPS (Immediate Payment Service), USSD (Unstructured Supplementary Service Data), SMS (Short Messaging Service) and UPI (Unified Payment Interface) [8] based app solutions (like BHIM (Bharat Interface for Money), GooglePay (Tez), PhonePe and Bank specific apps like SBIPay, AxisPay, iMobile, Mobile Money etc) are available to perform regular banking operations (like fund transfer, cheque request etc) and other payment [14,15] operations in m-shopping, metro card recharge, loan/credit card payment. Number of features and security level offered, varies with every application and are dependent on the mobile device capability, its operating system and internet connectivity. USSD and SMS based banking operations are suited to low end non-smart phone devices without internet connection. USSD service is offered in association with the Mobile Network Operators (MNO’s). Though there are few security concerns in mobile banking applications, they are still preferred by everyone, because of its well-known advantages like fast, easy to use, convenient to pay bills, portable, available etc. Even banks promote mobile banking [1] as it helps to handle more customers with improved customer services at reduced operational cost without compromising on service quality. Banks also offer discounts, gifts etc., to promote mobile banking. Following are some of the common terms used in mobile payment types. VPA: 
Virtual Private Address. An address of the format <mobile number>@upi [6] used to transfer money using UPI App’s. User can create multiple VPA’s. UPI based fund transfer uses VPA internally to look up the account number. IFSC (Indian Financial System code): It is a eleven digit code seen in cheque leaf used to identify the bank branches involved in money transfer. MMID: Mobile Money Identifier. A unique seven digit code assigned to customers on registration to avail IMPS service as a beneficiary. The paper contents have been organized in seven sections, with Section 2 on Evolution of Money and Payment Solutions, Section 3 on UPI Based Mobile Banking, Section 4 on Security Enhancement proposals, Section 5 on UPI vs other Parallel System, Section 6 on Conclusion and Section 7 on Future Scope of Work. 

EVOLUTION OF MONEY AND PAYMENT SOLUTIONS 
The evolution of money started with Barter scheme (i.e mutual exchange of goods and services) and have evolved over these years from coins to paper and plastic money (i.e cards). Fig.1 below shows the transitions in money evolution. Fig. 1. Transitions in Money evolution
904 Now in 21st century, it has advanced to currency less money transfer in the form of mobile payments and virtual currency. Even in mobile based payments, user has multiple options to choose from namely NEFT (National Electronics Fund Transfer), RTGS (Real Time Gross Settlement), IMPS (Immediate Payments Service), UPI, USSD and mobile wallets. Fig. 2 below shows the various options of mobile payment modes. Fig. 2. Mobile Payment Modes A. Mobile Payment Modes Mobile payment modes are given below. NEFT: Used to transfer fund from one account to another. RTGS: Scheme for instant money transfer within 30 minutes. Unlike NEFT, RTGS processes the instructions immediately without delay. IMPS: An instant payment system to transfer funds from one account to another using mobile. It is an initiative of NPCI. UPI: UPI is the advanced version of IMPS. It is a mobile based payment mode where multiple mobile accounts can be managed using a single VPA. Allows fund routing and merchant payment. Uses UPI PIN to authenticate UPI fund transfer. It is built on IMPS infrastructure. USSD: A mode of performing mobile banking transaction using *99#service codes. Mobile Wallet: A secured way to carry credit/debit card information. Allows payment at stores via mobile phones. Availability of more than one payment mode, facilitates the user to choose an appropriate mode depending on his/her device capability (smart/GSM phone), internet connectivity (online/offline), known/available confidential information (i.e Account Number/IFSC/MMID code/Mobile number/VPA and MPIN), fund transaction details including amount, day and time (i.e weekday/weekend and time of the day). B. Comparison of Mobile Payment Modes TABLE I below shows the comparison of various Mobile payment options.

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