DIGITAL BANKING SECURITY, RISK AND CREDIBILITY CONCERNS IN SOUTH AFRICA

This paper addresses aspects of security in the following digital banking delivery channels: Internet, cellphone and Automated Teller Machine (ATM). South African banks use these delivery channels to reduce operational costs and enable customers to conduct banking transactions conveniently. This study found that the adoption of digital banking services in South Africa is growing tremendously. This has attracted criminal elements employing tactics such as skimming, SIM (Subscriber Identity Module) card swapping, ‘phishing’ and ‘spoofing’, ATM bombings, and SMS (Short Message Service) interception. Because customers are extremely concerned about digital banking crime, South African banks are dealing with the crime swiftly and with a great deal of sophistication. The study has found that the adoption of digital banking services is not negatively affected by security concerns. In other words, the credibility of digital banking remains intact despite security issues.