The amount of purchases made through smartphone devices are increasing at an alarming rate. These payments are expected to exceed $90 billion by 2017, a towering number compared to the roughly $12.8 billion spent in 2012. Much of this increased spending will be accompanied by the emergence and increased used of E-Wallets. Some fear is that this will put themselves at an all-time high risk of identity theft and fraud, but is that necessarily true? The answer might be yes. Depending on the app providers security, you be the difference between secure information and easily hack-able information. The other concern is what these companies will do with your information. Providers like Google have been known to auction off information of its users for the right price and you can even be tracked through your phone. With all of your transaction history, advertisers, retailers, operating systems manufactures, and app developers can build more in depth comprehensive consumer profiles. This being said your phone will know where and whenever you go somewhere, your geographic history, your social media connections, and your financial behaviors. The final concern I bring to your attention is the risk of losing your phone. Rather than being responsible for contacting your service provider, you will also need to make sure you contact your bank immediately as well. (http://www.thestate.com/2013/03/22/2689348/mobile-wallets-raise-privacy-security.html)
A small concern to consider is how your credit score will be impacted. Through increased advertising on your phone and constant "special offers," impulse buying will be at an all time high.
(http://blog.credit.com/2012/11/how-the-mobile-wallet-might-impact-your-credit-score/)
SAFETY TIPS
• Protect your smartphone the same way you would protect your laptop computer or your real wallet. In other words, don’t leave it out where somebody might run off with it.
• If you do use mobile payment technologies, link a credit card rather than a debit card because legal protections are much stronger. Never link directly to your checking account.
• Set password protection for unlocking your phone and a second password for any payment apps.
• If a phone is stolen, let your mobile carrier know immediately so the phone and all apps on it can be disabled.
Read more here: http://www.thestate.com/2013/03/22/2689348/mobile-wallets-raise-privacy-security.html#storylink=cpy
In theory this mobile wallet sounds like a great idea, giving you added convenience. But the actuality of what it can do is alarming. I enjoy my privacy and hope to keep it and therefore would never purchase a phone like this. Loosing the phone could be very scary in terms of finances. Imagine not only loosing your phone, bat also all your financial information.
ReplyDeleteKrzysztof Kwasniewicz
The idea is good, but sometimes people dont trust to whom are they going to make their payment, because you never know if they are going to clone your credit card. This is a good idea but privacy has to be the main concern of this company to gain the trust of their customer. I think if the companies can handle privacy very well this industries is going to grow much more in a few years.
ReplyDeleteI agree with you Krzysztof. I couldn't imagine losing all of my financial information. I have a hard time putting the financial apps on my phone already.
ReplyDeleteDon't get me wrong this is a great idea but privacy would be my main concern. What are their plans to ensure the privacy?
The issue is many of these companies will be taking the risk of security and privacy out of their hands and putting it back into those of the customer. I mean yes they can supply a secure cloud network, and force their apps to use multiple pass locks and codes, but at the end of the day it really comes down to how responsible you are. Phone security will be just as important as keeping your physical wallet safe as well. In the future giving your phone to someone to use would be the equivalent of giving your wallet to someone to use today.
ReplyDelete