Mobile Payment Security Study Reveals Security Risks

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..