Mobile Banking Security Risks on a Jailbroken iPhone Are Preventable

Jailbreaking an iPhone can lead to security risks for mobile banking users who are not vigilant about what apps they download, according to new research from New York-based Corporate Insight.

"Jailbreaking" is a term used to describe by passing a smartphone's standard software in order to download software not sanctioned by its maker -- in this case Apple.

Corporate Insight said that while there are risks associated with utilizing a jailbroken iPhone, they are preventable and easily managed. "Not unlike the precautions investors should take when banking online with a personal computer, safely utilizing a jailbroken iPhone only requires the user to thoroughly research new programs and monitor their iPhone settings," the company said in a news release.

Corporate Insight recommends users should "conduct diligent research" before downloading any software not sanctioned by Apple to ensure they are trustworthy.

Preventing backchannel entry into jailbroken iPhone system files is another concern, according to Corporate Insight, adding that if a Secure Shell Interface app is installed, users must make sure the default password is changed.

"While there is some risk involved with operating a jailbroken iPhone, the threats are similar to banking online while using a personal computer,”"says Dan Wiegand, Senior Analyst at Corporate Insight, in a statement. "We advise jailbroken iPhone users to use extra diligence and caution to ensure the safest mobile banking experience."

Bryan Yurcan is associate editor for Bank Systems and Technology. He has worked in various editorial capacities for newspapers and magazines for the past 8 years. After beginning his career as a municipal and courts reporter for daily newspapers in upstate New York, Bryan has ... View Full Bio