Money Market UK: Mobile Wallets: The New Fraud Frontier

January 2, 2016 — Mobile Wallets: The New Fraud Frontier

Mobile wallets are enjoying increasing adoption, with payments made via mobile devices in the United States expected to total $90 billion by 2017 according to Forrester Research.

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

Mobile apps currently hold many credit card details raising concerns about security, and legitimate applications passing data to other applications in an unauthorised manner is gaining more attention. A single pin unlocking all of the stored accounts, allowing much greater exposure is another possible drawback.

With a company’s brand reputation and customer loyalty on the line, how can institutions secure payments via mobile wallets? The key is trusting the user based on behaviour.