Abstract: There are a continuously growing number of customers who use Internet banking because of its convenience. But the security and privacy of Information may be one of the biggest concerns to the Online Banking users. The problem with Online banking applications is that they send data directly to customer in plain text form compromising with security. The solutions to the security issues require the use of software-based solutions that involve the use of encryption algorithms. For this we propose a challenge/response -based short-time password authentication methods using Symmetric cryptography in combination with Software Security model. In this approach bank hides customer transaction data is secure SMS using IDEA symmetric cryptographic algorithm and send it to customer application supported handset. Customer application decrypts data in secure manner the encryption and decryption are characterized by a secret key that the legal parties have to posses. So, in face of the current security issues and the growing number of attacks and consequent frauds, new internet banking systems should be designed as to provide better authentication and identification methods. And these methods can be implemented to the Mobile banking to address the Security concern.