Literature Review
1. The integration of modern information technology with conventional banking services is
known as e-banking. Reducing operating expenses and increasing revenue are the main
factors that propel e-banking services (Sannes, 2001; Reibstein, 2002). Customers
essentially self-serve through e-banking, which saves banks money on resources,
transactions, and production (Southard and Siau, 2004; Witman and Poust, 2008).
Applying e-banking can enhance banks' performance in terms of asset growth, operating
expenditure reduction, and portfolio enhancement, according to a 1999–2006 study on
the subject (Dandapani et al., 2008). Sraeel (1996) emphasized in the 1990s that the
development of virtual banking will not only open up a new channel for the supply of
services, but also result in value creation for both banks and consumers. Amato McCoy
(2005) goes on to say that when advanced e-banking services like e-transfer and e-bill
alternatives are offered, people will be drawn to e-banking. Jenkins (2007) found that
banks on a small island were using e-banking to guarantee their clients a competitive
level of service quality by conducting interviews with them and looking at their e-
banking websites between 2004 and 2006.
2. One of the most talked-about topics in relation to online banking is security. According
to a review of numerous research, the adoption of e-banking services may be influenced
by factors such as accuracy, security, efficiency, accessibility, personality, reliability, and
convenience of use (Joseph et al., 1999; Meuter et al., 2000; Yang & Jun, 2002; Joseph
& Sone, 2003; Long & McMellon, 2004). But according to a number of studies, the
biggest factor influencing the adoption of e-banking is privacy and security concerns
(Polatoglu & Kin, 2001; Devlin & Young, 2003, Srivastava, 2007). E-banking exposes
previously separated systems to potentially dangerous and open surroundings,
increasing security vulnerabilities. There are basically three types of security breaches:
those committed by "casual hackers," those with major criminal intent (fraud, theft of
financial or commercially sensitive information), All of these threats have potentially
serious financial, legal and reputational implications. Many banks are finding that their
systems are being probed for weaknesses hundreds of times a day but damage/losses
arising from security breaches have so far tended to be minor. However, some banks
could develop more sensitive "burglar alarms", so that they are better aware of the
nature and frequency of unsuccessful attempts to break into their system. There could
be major financial, legal, and reputational repercussions from all these threats. Although
many banks discover that their systems are being examined for flaws; yet the costs and
harm resulting from security breaches have thus far been relatively small. Nonetheless,
some banks might create more sensitive "burglar alarms" to help them better
understand the type and volume of failed intrusion attempts.
3. In order to comprehend, forecast, and elucidate the reasons behind people's
acceptance or rejection of information technologies, academics have created and
employed a number of models to gauge users' acceptance. One of the most often
referenced models used by researchers to examine the fundamental elements that
encourage users to embrace and adopt a new information system is the technology
acceptance model (TAM), which was first presented by Davis, Bagozzi, and Warshaw in
1989 (Al Shibly, 2011). TAM's main objective is to explain the variables influencing the
acceptability of computer applications generally. Furthermore, this approach aids
practitioners and academics in determining the reasons why a specific system is
unsatisfactory (Davis, 1989). The degree to which an individual thinks that utilizing a
specific system would improve his or her performance at work is known as perceived
usefulness, or PU. The degree to which a person thinks that utilizing the system would
be effortless is known as perceived ease of use, or PEU. A person's favorable or
unfavorable appraisal of the behavior in question can be explained by their attitude
(ATT). The degree to which a person is willing to exert effort when engaging in a
particular behavior is measured by their intention (INT). The model's external variables
are a group of factors that, through perceived usefulness and ease of use, might
indirectly affect the adoption of information systems (Davis et al., 1989).
4. (Singh et al, 2011) People are not aware about the e-banking frauds like Phishing out of
50 respondents 16 were aware, spoofing only 12 were aware etc. Some preventive
measures to be taken by the customers for reducing these e- banking frauds like not to
forget the ATM card anywhere, not to disclose the PIN number to anyone, never give
the credit card information when it is asked on phone, not to reply phishing emails, to
always use the websites that are secured. Internet and Mobile Association of India
(IAMAI) found that 43%of customers are not doing transactions on banks internet sites
in India because of security issues.
5. (Kundu and Rao, 2014) E banking frauds are safe crime does not harm or cause any
injury to the body of the fraudster. It is difficult to find the fraudsters of e banking
crimes and even the investigators are finding it difficult to locate the fraudsters. Around
455 fraud case were reported during 01.01.2007 to 30.09.2010which includes credit
card frauds, ATM frauds, staff frauds etc. the few of suggestions made to prevent e
banking frauds are security policy to be framed by banks, monitor internal management,
provide training to the staff handling e banking system, regular upgradation of
technology and banks to have compulsory in house grievance settlement body, more
and more investigating cells to be established and appointment of efficient investigators
to be made.