Security Perspectives for USSD versus SMS in conducting mobile transactions: A case study of Tanzania

Abstract

Performing transactions using mobile devices is increasing rapidly in developing countries, Tanzania inclusive. USSD and SMS are among the technologies widely used in conducting mobile transactions. These two technologies have their strengths and weaknesses from perspectives of security of systems. They both utilize GSM Services and GSM Security is known to have inherent flaws in its encryption and authentication algorithms. A description for these platforms is given in this paper of what they are, their modes of operations, and an evaluation of their security as related to mobile banking systems. From the evaluations made; this paper suggests a method that is more secure for use in mobile banking systems. As a solution we propose some security features being added to the existing systems in order to improve data confidentiality, message integrity and user authenticity. The suggestions are based on the capabilities for the technology to accommodate these additional features to protect data that will supplement the protection offered by the GSM