Threats and the existence of security control procedures in computerized banking system: evidance from Malaysia

Abstract

The rapid development and use of technology in the dissemination of information has embraced new dimensions among individuals, organizations, and government establishments. The banking industry is not an exception. As service orientated institutions, banks need information in executing their business activities. The proliferation of innovative-technological services by banks - use of mobile banking, etransfer funds, internet banking, automated teller machine (ATM) among othersresulted into the increased use of sophisticated technologies in disseminating information or to information system (IS). Given that no system can be made absolutely secure, executing adequate security controls over organizations’ information systems and other organizations’ assets become necessary. It is against this background that this study attempted to examine threats and the existence security control procedures in the Malaysian computerized banking system (MCBS). The study specifically targeted banks operating in Kuala Lumpur. Data was collected through postal mail questionnaires. The findings show that the respondents perceived the likelihood prevalence of threats in their respective banks in a range of areas. It also revealed that there is significant difference among the Malaysian computerized banks’ branches regarding the extent of security control implementation in control activities, risks assessment and monitoring control procedures. However, the results on the existence of threats show non-significance difference in all the threats variables. Moreover, the study found that there is reasonable level of security control implementation in the observed banks’ branches. Therefore, the research concluded that there were adequate rate of implementation of security control procedures in the Malaysian computerized banking system. Moreover, the study suggested that the banks should consider continuous improvement in some of their security control procedures.