With Mobile Commerce On The Rise, Consumer Groups Warn Of Security Risks

While the mobile commerce segment burns red hot, consumer protection groups warn of the potential security risks associated with using your mobile device as a payment method. Consumer’s Union, the nonprofit testing and information organization which publishes Consumer Reports, called on regulators Tuesday to implement protective standards on mobile payments, and to educate consumers of …   Read More

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With Mobile Commerce On The Rise, Consumer Groups Warn Of Security RisksWhile the mobile commerce segment burns red hot, consumer protection groups warn of the potential security risks associated with using your mobile device as a payment method.

Consumer’s Union, the nonprofit testing and information organization which publishes Consumer Reports, called on regulators Tuesday to implement protective standards on mobile payments, and to educate consumers of the liabilities in using mobile payments as opposed to highly regulated traditional credit and debit cards.

Federal law currently protects credit or debit card holders from many charges associated with lost, stolen or misused cards, for example, but without industry-wide rules for mobile commerce providers, consumers could risk losing money through fraud, merchant disputes or processing mistakes, the group said.

The risks vary depending on how mobile payments are executed.  Those linked to credit cards are the most protected, according to the group, with limited liability for unauthorized transactions and the right to argue about certain charges.  Phone purchases hooked up to debit cards have fewer safeguards and carrier-billing is even less protected.  Until the same standards of traditional commerce enter the mobile realm, consumers will remain weary of the concept.

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4 comments

  1. TeleSIgn Matt

    I've been working with a company called TeleSign (http://www.TeleSign.com) whose innovative solutions include two factor authentication solutions for mobile payment methods. Feel free to check them out.

    Respectfully,

    TeleSign Matt

  2. Product Reviews on Yahoo Store E-Commerce by Vastplanet | iFree Talk

    […] With Mobile Commerce On The Rise, Consumer Groups Warn Of Security … […]

  3. MNO

    Mobile payment is a new and rapidly-adopting alternative payment method especially in Asia and Europe. Instead of paying with cash, cheque or credit cards, a consumer can use a mobile phone to pay for a wide range of services. For that reason Secure authentication for access to on-line services, convenient physical access control, security and ease of making payments have become essential functional requirements in today's world.
    Thank You

  4. Carstarphen

    Hmm
    Interesting article. It doesn't seem like many people are making debit and credit card purchases on their smart phones yet, but it seems like that is where we are headed.
    <a target="_new" href="http://jcmobilemarketing.com/blog/">Mobile Marketing is the future!

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