Smartphones, Mobile Banking and ID Theft Risks

In todays modern world, most consumers would agree that
they could not survive a day without their smartphone. In many cases, a
persons smartphone is their best friend, but what many consumers fail to see
are the dangers that lie within that device. According to an article in the
Wall Street Journal, roughly 12 million people were victims of identity
in 2011, which was a 13% increase from 2010. A report from Javelin Strategy & Research,
attribute this increase to the use of social media and smartphones. A large
majority of this identity theft is due to the fact that most users store
personal information on their phone and their phones are physically stolen or
misplaced. The thieves then can use this information to hack into bank or
shopping accounts. This form of theft is not the only threat that smartphone
users should be aware of though.

There are many risks that open up the opportunity for
identity theft even with the smartphone in the users possession. In an
interview with Julie McNelley, she discusses the threats that mobile
banking applications
pose. Cross channel fraud continues to be an issue
when consumers are using mobile banking and shopping functions. It is important
to monitor all cross channel activity and ensure that there is some type of
gate between the flow of information from one point to the next. Id
and authentication can act as these gates. Platforms that use
third party vendors as a part of their security measures
can help detect when fraudulent activity is going on. By helping prove that the
user is who they claim to be, each checkpoint in the security process can be
approved for further travel.


[Contributed by, EVS Marketing]


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