Boleto reports that it has been compromised by malicious attack
Brazil’s mobile payments platform Boleto has announced that it has been hacked. The platform is the most popular of its kind in all of Brazil, which has made it a target for malicious groups seeking to exploit financial information. The attack has brought more attention to the issue of mobile commerce security and could have a major impact on whether or not people will participate in mobile commerce in the future.
Some $4 billion has been stolen from Boleto
Boleto notes that the hack occurred over a two year period, with some 500,000 transactions being compromised over that timeframe. An estimated $4 billion in mobile payments has been stolen as the result of the attack. It is still unclear whether or not all of the money involved in the attack has been obtained by the parties involved. Some of the funds may be caught in a sort of digital limbo, waiting to be accessed at a later point in time.
It may take time before money is returned to those affected by the attack
Boleto users were tricked into clicking malicious links sent via email as part of phishing ploys. These links were delivered to several thousand consumers that make use of Boleto somewhat regularly. The attack may affect people’s trust in the platform and in mobile commerce in general. Those affected by the attack may have their money returned, but it could take a significant amount of time for the issue to be adequately resolved.
Mobile commerce security is again thrust into the limelight
Mobile commerce security is an important matter that has yet to see any significant attention from consumers. Platforms like Boleto take steps to ensure the security of the financial information that they are responsible for, but few consumers take the time to ensure that they are adequately protected. Without taking steps to protect themselves, consumers could be exposed to inordinate risks to their financial information. High profile attacks, such as those that have recently targeted prominent mobile platforms and retailers, may be enough to encourage consumers to take security more seriously.
Brazil sees strong growth in the realm of mobile payments
Mobile payments have been picking up steam in Brazil. The Brazilian government has been taking steps toward making mobile payments more commonplace and has been introducing measures that may help regulate the mobile commerce field. Brazil’s Ministry of Communications has been noting the sharp rise in use of mobile devices over the past year. According to the agency, mobile technology penetration throughout the country is powering the growing popularity of mobile payments.
Government moves to regulate mobile commerce
The Ministry of Communication expects that more than 130 million mobile devices will be used to make mobile payments in the next two years. There are currently 260 million of these devices in operation throughout the country. The Brazilian government has begun showing strong interest in supporting the growth of mobile wallets, which can be used by consumers to store and use financial information with their smartphones and tablets. These wallets exist as applications that can be installed on a mobile device and have proven quite popular within the mobile commerce space.
Central Bank to develop regulatory roadmap for mobile payments
While mobile payments are on the rise in Brazil, the country still lacks a comprehensive regulatory structure to govern this growing sector. The Brazilian Central Bank has 180 days to develop a regulatory roadmap that will manage the emerging mobile commerce field and address the various security concerns that exist therein. Bank officials have noted that one of their top priorities is to ensure that mobile payments are universally accepted, allowing all consumers the ability to participate in mobile commerce if they so choose.
Security considered a top priority
Security is also considered a top priority, from a regulatory standpoint. Mobile commerce has long been plagued with security concerns that have slowed its adoption. Because mobile commerce involves the use of financial information through a mobile device, it is often considered insecure by nature. Indeed, mobile devices are quickly becoming ideal targets for hackers due to the financial information they are beginning to store and how this information is being used to initiate mobile payments.
