Abstract: The aim of this paper is to analysis the historic evolution of Internet banking in a worldwide perspective and to discuss all the forms of electronic banking and distinguish the Internet Banking because of its leverage to change the traditional mode of banking. Moreover here an explanation will be made to distinguish in Internet Banking System in various categories and discuss a vital issue that impinges on all banks, the risks involved in the activation in the Internet. Finally a conclusion with some suggestion on the risk management that banks can adopt in order to confront the imminent threats will be given.