Mobile Payment Security Study Reveals Security Risks

The 2015 Mobile Payment Security Study, conducted by ISACA, surveyed over 900 cybersecurity professionals and revealed that 47% said that mobile payments are not secure and carry significant perceived security risks. 87% predict that there will be a large increase in the number of mobile payments data breaches over the next 12 months. Chargebacks911 COO, …   Read More

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Mobile Payment Security Study Reveals Security RisksThe 2015 Mobile Payment Security Study, conducted by ISACA, surveyed over 900 cybersecurity professionals and revealed that 47% said that mobile payments are not secure and carry significant perceived security risks.

87% predict that there will be a large increase in the number of mobile payments data breaches over the next 12 months. Chargebacks911 COO, Monica Eaton-Cardone, says that this perceived lack of security has had a negative impact on its adoption.

ISACA ranked the vulnerabilities associated with mobile payment based on the survey data:

  • Use of public WiFi 26%
  • Lost or stolen devices 21%
  • Phishing and shmishing (phishing via text) 18%
  • Weak passwords 13%

The findings show a discrepancy between consumer interest and actual use of mobile payment technology. 57% of consumers were interested but only 3% of mobile phone owners used their mobile wallets for in-store purchases in the past three months.

According to Future Market Insights, the global mobile payment market is projected to be worth $2.8 trillion by 2020. According to LexisNexis, payment card fraud in the United States rose by 38% from $23 billion in losses in 2013 to $32 billion in losses in 2014.

Eaton-Cardone says EMV, which relies on the customer’s past history to determine if the purchase is valid or not, is the best option for fraud protection. A micro-chip stores sensitive information, buying patterns, and spending habits. She says EMV will soon become the go-to for consumers and merchants alike..

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