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Mobile Wallet Make Mobile Payments Securely

Some say there will be a day when the wallet you carry in your pocket or purse will become obsolete. The plan is to eliminate all our credit cards, store cards, and IDs and use our mobile phones as our primary means of commerce and identification. The technology behind mobile wallet or mobile POS (point of sale) basically turns your smartphone into a smart debit or credit card. Soon you will be able to pay for almost anything via your mobile device.

When mobile wallets and mPOS become more common, thieves will certainly look for ways to empty them. For instance, it’s possible for attackers to use technologies that allow them to “eavesdrop” on your payments or steal and transmit your credentials by extending the range of the wireless signal. Your data may also be manipulated or corrupted by an attacker.

So how do I conduct safe mobile payments?

Pay attention to your credit card statements to check that you are paying for what you actually purchased.

Only download mobile payment applications from a reputable app store. Check user reviews of the app and make sure to read to app’s privacy policy on what data of yours it is accessing and sharing.

Don’t do any mobile transactions over unsecured Wi-Fi connection. It’s much more secure to use your mobile data network.

Keep your mobile software current. This includes the latest updates for your operating system, mobile browser and mobile security software

Using your phone to pay for things simply by tapping it or swiping it at a store’s checkout terminal may sound like a convenience of the future, but it’s already here and you need to be prepared for this.





Comments: (2)

A Finextra member
A Finextra member 11 July, 2012, 23:39Be the first to give this comment the thumbs up 0 likes

That's a mixed bag.

Checking card statements does not prevent fraud (by that point the damage is already done).

There is nothing inconvenient about cards (and they are accepted almost everywhere, unlike NFC) - hence, m-wallet needs to deliver strong new incentives/benefits for the mainstream market to switch. If I cannot get cash from an ATM with my phone (i.e. if I still need a CARD for that), why bother replacing a wallet with a phone?

Software updates etc - can you imagine telling consumers they need to, say, wipe their physical wallet with an anti-bacterial cloth every week to make is safe?.. It's all about user experience - 90% of the companies in mobile payments don't get it.



Robert Siciliano
Robert Siciliano - - Boston 12 July, 2012, 16:35Be the first to give this comment the thumbs up 0 likes

A recent study shows 40 percent of smartphone users would rather lose their wallet than smartphone.

These days our phones are our credit cards, transit passes and more. Every time a user uploads money to their phone to pay for gas or coffee they are increasing the cost of replacing their phone if lost or stolen. Replacing a smartphone and its contents can take as many as 18 hours and hundreds of dollars.


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