ITProPortal: Mobile wallets: The new fraud frontier

December 2, 2015 — ITProPortal: Mobile wallets: The new fraud frontier

Mobile apps currently hold many and varied credit card details, raising concerns about security. These valid concerns include loss of privacy, loss of security around financial transactions, data loss and the perception of insecurity.

Mobile wallets are enjoying increasing adoption. Payments made via mobile devices in the United States are expected to total $90 billion by 2017, a big jump from the $12.8 billion spent in 2012, according to Forrester Research.

There are two different types of mobile payments. The first type works through contactless technologies such as Near Field Communication (NFC) built into mobile phones. In this case, the payment traverses the merchant’s POS system and the relevant payment-processing environment, not relying on the mobile carrier’s network.

The second type of mobile payment is a mobile application (mobile wallet) that allows payment to be processed through the mobile carrier’s network, as is the case with banks. A mobile wallet has several key components, including the ability to provision account information, payment origin and payment processing.

With the near-ubiquity of mobile devices, banks are under pressure to release their own mobile banking apps, but security fears abound

To see the full article at ITProPortal click here.