Sanchez tested 40 of the world's 60 "most influential banks" and found that some mobile banking apps allowed crooks to devise forms for phishing. In other words, you could receive an email from the bank that looks official, asking you for personal information. But instead of going to the bank, the info goes to criminals using the information you give them for evil purposes. Amazingly, 70% of the mobile banking apps did not have an alternate method of authentication which could help guard against impersonation of customers.
Most of the apps can easily disclose your authentication information through the Apple system log. Using an iPhone Configuration Utility tool, this information can come tumbling out of an application dump. Nice, huh? And 20% of the apps sent out security codes through plaintext communication heightening the possibility that confidential information could be intercepted and used to drain your account. Some banks are using an unencrypted database to store your confidential information.
Hopefully the financial institutions look at the report and make the necessary changes. Look at what happened to Snapchat when it didn't listen to a security expert. Right now, using a mobile banking app would appear to be akin to playing Russian Roulette with your money.
source: IOActive via BGR