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.
Mobile security attracts attention of FTC
Mobile security is a potential catastrophic problem, according to the U.S. Federal Trade Commission’s (FTC) Bureau of Consumer Protection. The federal government has been pushing for more comprehensive mobile security measures to be put in place throughout the country. Mobile applications and the information they collect from consumers has, thus far, been the primary focus of the government’s mobile security concerns, with the FTC aiming to hold applications developers and companies responsible for the information that they collect.
FTC targeting companies collecting consumer information
The issue of mobile security has become more pronounced since the FTC filed a case against Compete, a search marketing firm. Compete uses technology to collect personal data from consumers using its services, without providing these consumers with information about how this data will be used. In the case, the FTC has prohibited the company from collecting consumer information without the express consent of the consumer. The FTC also closed several cases against companies concerning the use of software that was being used to deliberately spy on consumers.
Google runs afoul of federal government
Google was also targeted by the FTC in late 2012 for circumventing the protocols of Apple’s Safari Internet browser to introduce users to targeted advertisements. The massive technology company was fined a record setting penalty of $22.5 million for breaching mobile security standards. FTC officials are likening the current state of the country’s mobile security practices to the “wild, wild west,” suggesting that many companies operating in the mobile space have little to no concern for mobile security.
Mobile security recommendations coming from the FTC
The FTC is currently developing recommendations concerning mobile security standards titled “Building Trust Through Transparency.” These recommendations are meant to help ensure the protection of consumer information, keeping this data safe from exploitation by marketers and similar groups. The initial recommendations will focus on companies collecting information from mobile consumers. In the future, the FTC will focus more closely on application developers, hoping to further bolster mobile security for consumers.
