Security of mobile payments questioned by FTC
Mobile payments are becoming all the rage around the world, but there are major security concerns that have been gaining more attention in some countries. Mobile commerce is on the rise in the U.S., and while that means more consumers are becoming acclimated to mobile payments, it also means that malicious parties are beginning to target these consumers. The U.S. Federal Trade Commission has released a new report highlighting the potential threats that exist in the competitive world of mobile payments.
Report highlights threats of the mobile world
The report, entitled “Paper, Plastic, or Mobile?,” sheds light on the issue of mobile payments fraud in the U.S. The Federal Trade Commission has drawn upon the vast amount of information it has received from companies and organizations heavily invested in the mobile commerce industry for the report. The report also contains the concerns that consumers have raised over the issue of mobile security and commerce, with fraud and identity theft being among the most worrisome of issues.
Security lax when it comes to mobile commerce
The report notes that the concept of mobile payments has been a very attractive prospect for years. Despite the anticipation surrounding mobile payments, however, relatively little has been done to ensure the security of mobile commerce. The Federal Trade Commission suggests that there are various ways in which a consumer’s financial information can be stolen and exploited and that some of the security issues that consumers face are inherent in many of the most popular mobile commerce platforms.
Credit cards considered most secure option for consumers
While the report suggests that mobile payments are very effective for purposes such as bill payments and shopping, the Federal Trade Commission remains unconvinced that mobile devices like smartphones and tablets provide enough security to make mobile payments feasible. The agency claims that credit cards offer the strongest security for consumers, especially when it comes to the matter of fraud.
PCI Security publishes guidelines for mobile security
The PCI Security Standards Council, a global forum for the development of payment security standards, has published new guidelines to help educate the world’s merchants on the issue of mobile security and how it relates to mobile commerce. Consumers have been growing more interested in mobile payments in recent years, creating significant demand for merchants to adopt mobile commerce systems. As these merchants become more accommodating of consumer demand, security is becoming an increasingly important issue.
Guidelines expected to help merchants make mobile commerce more secure
The new guidelines from PCI Security are meant to help merchants understand the complexities that exist in the world of mobile security. The guidelines may help merchants better protect their customers as they become more accepting of mobile commerce. PCI Security has put strong focus on mobile transactions that make use of payment card data, rather than transactions made directly through a bank account. Connecting a payment card to a mobile device is becoming more common, as consumers consider this a more convenient and secure way to participate in mobile commerce.
Mobile security will help secure growth of mobile commerce market
According to a recent study from Juniper Research, a leading market research firm, mobile transactions are expected to reach $1.3 trillion globally by 2015. This is four times higher than the current level of mobile transactions volume. The firm suggests that this steep increase in mobile commerce is due to businesses becoming more interested in ensuring they can accommodate the needs of mobile consumers. In order for this growth to become a reality, however, businesses will have to adopt better security features to protect consumers.
Evolving threats may make it difficult to ensure security
Mobile security continues to be a major area of concern in the realm of mobile commerce. PCI Security’s new guidelines are expected to help merchants adopt better security standards for their payment systems, but the constantly changing security landscape may make it difficult for businesses to stay up-to-speed with the most current threats that exist in the mobile space.
