Category: Mobile Security

Mobile payments grow, and so too do security worries

Mobile payments are on the rise all over the world. More consumers are getting their hands on smartphones and tablets, allowing them to shop and purchase products online with nothing more than their mobile device and their financial information. Mobile commerce services are expanding, providing the infrastructure necessary to facilitate a new form of commerce among a wide range of consumers. As mobile payments become more common, they are attracting the attention of more than just consumers and businesses. Hackers are beginning to consider mobile commerce a very lucrative playground, and the growth of mobile payments is highlighting the security concerns that exist in this emerging field.

Mobile commerce may yet be vulnerable to threats

The mobile commerce field has successfully attracted several large companies, many of whom have investing in improving the technology used in the field. As the technology that forms the foundation for mobile payments improved, it becomes easier for consumers to make payments directly from the smartphone of tablets. Many of the technological updates have been focused on making mobile commerce more accessible to consumers, however, and not necessarily more secure. This has left many gaps in protection that could be exploited by malicious parties.

Malware targeting mobile commerce field is becoming more common

NQ Mobile, a leading developer of mobile security software, notes that more than 65,000 new malware threats were exposed throughout the world in 2012.  Much of this malware was designed to simply gain access to a mobile device and exploit its information in some way. A significant portion of these threats, which posed as unassuming and docile mobile applications, were designed specifically to steal a consumers financial information when they participated in mobile commerce in some way. NQ Mobile claims that the problem is serious and growing to become a major crisis if measures are not taken to address the issue of malware in the mobile commerce field.

Awareness of mobile security currently lacking among consumers

Mobile security is currently one of the largest challenges facing mobile payments today. Many consumers have shown that they are willing to purchase products, shop, or pay their bills with a mobile device, but relatively few actually do so due to concerns regarding the security of their information. There are several brands of security applications available to help protect mobile devices from malware that would exploit a consumer’s financial information, but awareness of these applications is still somewhat low among many mobile consumers.

Smartphone and tablet banking has been suffering from the same worries from consumers.

Despite the fact that smartphone payments and banking services are being used by a growing number of people, mobile security concerns are keeping the rate of adoption at a notably lower level than its full potential.

This, according to the most recent report issued by the Interactive Advertising Bureau.

The report was issued by the bureau in its partnership with Viggle and with InMobi. They discovered that while smartphones and tablets are being used increasingly by consumers who are managing their money online, its adoption would be greater if certain barriers did not remain in the way. Among consumers, 58 percent regularly use the app from their bank, while 50 percent use the optimized website. That said, there remain a large number of individuals who hesitate to use these services due to mobile security concerns.

Mobile security has not yet proven itself to many of the potential users who have yet to be swayed.

According to the vice president and general manager for the Mobile Marketing Center of Excellence from the Interactive Advertising Bureau (IAB), Anna Bager, discussed the situation studied in the research when she said “Clearly, mobile users are leaning into their devices for personal finance assistance wherever and whenever they happen to have a need.”

However, Bager also pointed out that consumers are still worried over mobile security issues with this type of services, even though they are using them more than they have before. She explained that “Most financial apps already contain rock-solid security, but consumers seem not to be as plugged into that fact, and that knowledge gap can make all the difference in driving further usage and adoption.”

Bager said that mobile security is an area where financial services marketers should be placing a significant amount of their focus in the campaigns that they are planning. The supported this belief, as 52 percent of its participants said that they would require a concrete guarantee, even in the case that the device should be lost, before they would use a smartphone for payments and banking for the first time, or before they would increase their use for these activities.