Safety And Security Of Mobile Payment Systems

As technology advances over the years, we have experienced and noticed that the trend in how payment are received have shift tremendously. Twenty years ago, check was the preferred way of payment. In today’s world, more and more payments are done by credit cards. Credit card transactions are instance that provides a faster payment method.

An unauthorized and highly sophisticated malware that not been encountered previously by any security company attacked the point-of-sale systems where all the card information is stored. The outcome of this hacking been extensive and affected millions of customer’s personal and payment data was exposed, results in the payment card compromise of three million customers.

In December 2013, Target announced that massive amounts of credit and debit card information they collected over the years might be in the danger of theft. The credit card breach could affect as many as 70 million customers who swept cards in the retail stores or linked their cards with the membership card, the RedCard. Each card information contains a card number, holder’s name, address, phone number and etc. The more information the thieves got, the more conveniently the thieves could use them to get benefits from the card holders. Jia Lynn Yang and Amrita Jayakumar, the authors of “Target says up to 70 million more customers were hit by December data breach”, write about how bad people will use customers’ information to crime. These thieves possibly shop online by inserting the card information. They could also contact with the victims to gather more sensitive information, and even hack into their computers. This event forces us to seriously consider the crisis in how retails protect customers’ data (Yang &

This article gives a synopsis of threats to the mobile devices and the data existing in them and the available defenses. It classifies seven different types of threats on mobile devices and then it discusses about the precautions that can be taken to avoid these threats. It recommends how to prioritize the different threats and defenses.

Online shopping has become a lifesaver for many consumer providing conveniences; convenience sells. Today’s consumers expect to see a company’s presence online with the top social media tools including Facebook and Twitter. With the advancements in mobile technology, consumers can make purchases with the click of a few keystrokes on their smartphone. These purchases require customers to enter in their personal information, including mailing address, email and banking information. Entering this information online can open customers up to the threat of hackers stealing their personal information including their bank account information.

Card holders have several countermeasures, including complex software which can assemble a vest interaction and guesstimate the possibility of fraud. For example, a large trade occurring in a great distance from the cardholder’s home might seem mistrustful. Merchants may be commanded to call the card holder for authentication, or reject the transaction or do whatever they want. Customers must call the issuer and prove their identity to get their card back.

This article warns about the impending launch of viruses on mobile phones. The advent of Internet-enabled mobiles has increased the threats of mobile viruses exponentially. Examining the types of attacks and the impacts on the users. Even though published before it’s time, this article is still very relevant for modern concerns.

Given the lack of ability to inspect merchandise before purchase, consumers are at higher risk of fraud than face-to-face transactions. Merchants also risk fraudulent purchases using stolen credit cards or fraudulent repudiation of the online purchase. However, merchants face less risk from physical theft by using a warehouse instead of a retail storefront. Secure Sockets Layer (SSL) encryption has generally solved the problem of credit card numbers being intercepted in transit between the consumer and the merchant. However, one must still trust the merchant and employees not to use the credit card information subsequently for their own purchases, and not to pass the information to others. Also, hackers might break into a merchant's web site and steal names, addresses and credit card numbers, although the Payment Card

The last decade has witnessed a lot of growth of mobile communication devices and wireless technologies across the globe. This has led to a change in the way many activities are conducted and opened the way for m-commerce, which is e-commerce's next evolutionary stage. The significant power of m-commerce is primarily as a result of the ability to connect wireless devices anytime, anywhere (The Future of Mobile Payment Systems : Rise of the Mobile Wallet 2012-2017 [Electronic version], 2011).

Identity theft is a crime that is increasing significantly in the United States. As a nation American’s are becoming more and more dependent on technology in our day-to-day lives. Technological advances are making it easier on consumers to participate in E-Commerce; collaborate with friends, families and employers; and utilizing basic utility services (phone and cable) via the Internet. As services such as ApplePay and any other applications for our smart phones that are designed to make it easier for us to participate in e-commerce, more of our personal information is at risk. As the technology evolves it is up to each and every individual to stay vigilant in protecting his or her identities from thieves.

According to the U.S. Department of Homeland Security in the article Cyber Threats to Mobile Phones, phones are now sharing hardware and software similar to a PC and becoming each time more like a PC. Therefore, the risks of being hacked are increasing, allowing hackers to attack mobile devices the same way as if they were doing it with a regular PC. Personal and professional information are more often stored on mobile devices therefore it is imperative to have our data secure. Security solutions for mobile devices are not as broad or high-tech as those for PCs. The majority of mobile security relies on the proper use and smart choices that the user makes on a daily basis to be protected against cyber attacks. Even the most careful person can be attacked but the possibilities of that happening are less when you are proactive.

Therefore, it is essential to address issues like security of the banking transactions that are executed from a distant place and transmitted over the air. Besides this, it is also important to ensure the security of financial transactions, if the device is stolen by hackers. If these concerns are properly addressed, then it would help increase the popularity of mobile banking by instilling a sense of trust among the customers.

Thesis; Along with the efficiency mobile devices render, come along its risks, in which raises substantial security and privacy concerns. It’s important to be aware of the possible threats a mobile can have, along with knowing what and how to secure information, as well as trying to prevent threats from happening.

Fraud over the years has picked up over the years with the increasing in technology. One the areas that have increased in fraud over the years is Mobile devices. I currently work for Sprint Fraud Management where we deal with fraudulent issue on a daily basis. Fraudster will steal people’s personal information and open up accounts. Fraudster will also get a hold of customer’s security info and will add phone lines to their account. Working in the Fraud department I can agree first hand that mobile device companies need to change their security standards to help in decreasing fraud in the United States.

When online commerce first emerged, many consumers were wary of supplying their credit cards and giving their personal information to online stores. This led to the development of websites such as Paypal, which restricts the access a retailer has to one’s credit card number (Einstein). The threat of fraud has always been a worry for online consumers, but consumers face the same threats when shopping in a brick and mortar store (Chadwick).