It is understood by studies that wireless data services is crucial for users to access locationbased services. As in location-dependent services, the data value for a data item depends on geographical locations. In general, the Location Based Services includes the services to identify the location of a person or object like searching of the nearest Banking, Cash Machine Receiving Alerts, Location Based Advertising etc. With the rapid adoption of mobile devices as a primary interface to network of services, there is a considerable risk with respect to authentication and authorization. To guard against risk, trustworthy authentication and secure communication are essential especially in Location Based Services. The purpose of this study is to identify security risks in mobile transactions specially in location based services like mobile banking. Current mobile banking authentication is challenging and identified as a major security risk. Identify the factors why customer distrusts mobile banking. Furthermore, identifying security issues between mobile devices and mobile banking systems. Finding which approach is more suitable and secure for mobile banking transaction between customer and bank.
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