The increased use of mobile devices to pay bills and buy groceries, and products has also increased the risk of mobile payments being compromised by hackers and fraudsters.
With Apple Pay, Google Pay, and Samsung Pay becoming more common in our everyday lives, these risks are only going to increase. However, you can minimize your risk by choosing the right security measures and a trustworthy Security Solution like the one offered by Build38. In this article, we will go over the risks of mobile payments and ways to prevent them through our mobile security solutions.
What are Mobile Payments?
Mobile payments are a way to pay for things from your phone or other mobile devices. Many people prefer mobile payments because they don’t have to carry cash and it’s easier than searching for the right card or check when paying. When you make a mobile payment, it goes directly from your bank account (or credit card) into the merchant’s bank account without any need for either party (you or the merchant) to use physical money. However, as more people adopt to smartphones, online shopping becomes more common which leads to increased security threats around mobile transactions like online fraud and identity theft.
Mobile Payment Security Threats
The mobile payment market value is anticipated to reach $12.6 trillion by 2027, while mobile payment fraud accounts for 27% of online sales. Considering today’s hostile digital landscape and with increasing adoption of IoT devices, it is safe to say that mobile and contactless payment security threats are likely to only increase in the future. Some of the common mobile payment security challenges faced by users globally are listed below:
Vulnerable Contactless Payment Methods
A leading retail banking research report forecasted that contactless payments made via mobile devices using some type of payment app will exceed $522 billion globally by 2026 — with an average annual increase of 23%. However, the rising adoption of contactless mobile payments is also fuelling emerging security risks.
Contactless payment methods when combined with a smart device have the potential to be used fraudulently. This is mainly due to their ability to be quickly and surreptitiously activated without first requiring manual entry of a PIN or signature via contactless payments made at ATMs, in-store checkouts, or on-the-go mobile banking applications.
For this reason, it is essential that users take precautions against possible fraudulent transactions by adding a PIN code required for each transaction using contactless payment methods. The level of security can also be increased by setting up text message alerts from financial institutions whenever transactions are conducted so that users can identify any unauthorized use of the device, or the banking application installed on the device. You can also secure your mobile and contactless payments all the way with Build38’s Mobile Payment Solution.
Your mobile device can also become infected with malware that is designed to collect banking information and passwords. Malware for mobile devices can be as harmful as its counterparts for computers. Also, contactless transactions are vulnerable to interception. To protect your finances do not use a phone that has been rooted or jailbroken, disable nonessential programs like chat apps, avoid using public Wi-Fi networks and make sure to follow essential mobile security best practices to avoid potential mobile security risks.
Vulnerable banking applications
Recent research suggests that there is a growing number of vulnerabilities in banking applications that use mobile devices for transactions. The major flaw with these applications are the security vulnerabilities in the applications and the users who have weak passwords and have forgotten or misplaced their devices which puts all their information at risk. This creates a perfect storm for cybercriminals looking to manipulate financial data by hijacking someone’s identity for financial gain. Similarly, cybercriminals are also spreading clones of mobile banking apps to trick unsuspecting users into downloading those fake apps that can ultimately steal the financial information of the users.
Build38 offers a solution for shielding, detecting and response to Mobile Banking Apps ensuring the protection of your backend and your customers’ apps, preventing fraud and minimizing revenue impact. Protect your backend and your customers’ apps with Build38’s Mobile Banking Solution.
Targeted Attacks on Mobile Devices
As mobile devices become more and more sophisticated, so do the methods that are used to try and steal financial information from people. People often get hung up worrying about cyberattacks in the virtual world, when those attacks may be happening in the physical world all around them. Hackers can target vulnerabilities in IoT devices such as mobile phones to bypass any weak security measures in place to steal stored information in your device and banking applications. Similarly, hackers can exploit lost devices and can also physically steal your devices to extract all the stored information from your device — resulting in serious real-world complications.
Reducing Mobile Payment Security Risks via Mobile Security Solutions
There are several security solutions available to help prevent mobile payment hacks. These can protect your device and secure mobile transactions, providing multi-layered protection, whether you use your smartphone for contactless payments at retail or for making payments via your bank’s mobile banking app. They also help keep credit card numbers safe by securing the connection between the phone and the point-of-sale terminal while scanning credit cards, as well as encrypting all data on the device.
For those using their smartphones for contactless payments at retail, these protections will help keep unauthorized individuals from accessing information about where you shopped and what items you purchased. For mobile banking applications that allow transfers from one account to another the most effective mobile application security solutions provide two-factor authentication with PIN codes and fingerprint scans to further ensure transactions are completed securely. Further measures such as geo-fencing, GPS tracking, and remote wiping are also offered by modern mobile app defense solutions to restrict access to an account if the smartphone is lost or stolen.
Build38’s your mobile app security partner
As more businesses embrace mobile payments in response to consumer demand, it is essential they take advantage of a wide range of security options that can help minimize risks associated with this new form of commerce.
While the convenience of mobile payments offers many advantages, there are also some potential risks and security concerns you should be aware of if you want to keep your apps safe. The increased use of contactless payments has led to a rise in payment fraud and lost data. One way this can be prevented is by having a mobile security solution partner like Build38. To learn more about our solutions contact us today!