5 Mobile Payment Security Concerns to Consider (2023)

Are mobile payments secure? This question emerged to every mind when online shopping and mobile payment came in the market. The flexibility and convenience levels it has come up with has made it trendier among the mobile users.

Nearly, 55.0 million people are using mobile payment options in the US, which makes around 20.2% of the population there. The mobile payment options are rapidly replacing the outmoded payment options allowing the customers to make payments or complete transfer transactions through technologies like Android Pay, Samsung Pay, Apple Pay, Paytm wallets, and many more. However, when it comes to the security of making mobile payments, there are some loop falls.

5 Mobile Payment Security Concerns to Consider

According to a survey, the total percentage of mobile payment crimes has reached 71% in 2019. And according to the experts, this percentage is sure to rise unbelievably in the coming years. Hence, for the people using mobile phones to make payments, here are the top 5 security concerns that need to be considered to avoid any kind of fraud.

1) Using Multiple Software Options

Similar to laptops and desktops, mobile phones are also working on various hardware and software systems. There are still some people who are using the old versions of iOS and Android globally. And this can lead to various security issues. The devices are not well supportive of the latest mobile security technologies which attract the hackers and fraudsters for exploiting and attacking.

(Video) Mobile payments come with better security, but one new risk

Again, if mobile applications are secure, the device may not meet the standards, providing you with the basics of mobile security. The mobile devices also need to be secure enough with advanced features to protect you from any kind of frauds. Some of the examples of a secure mobile device include verification codes to mobiles or emails, face scanners, fingerprint scanner, geofencing, voice recognition, etc. Hence, look for a smartphone with advanced features regarding the software and hardware for an end to end protection of your payments and accounts.

2) Oops! I lost my phone!

Today, smartphones are similar to credit cards. It contains all the necessary details like the contact information, names, personal collection of photographs, social media connections, and whatnot. Similarly, it also provides complete access to bank accounts, debit cards, and credit cards through various payment apps, mobile wallets, online banking apps, and much more. But what if you misplace your phone at any store, restaurant, or any other crowded place? All your personal details are sure to get leaked right? And this includes all the banking and mobile payment details, which can lead to frauds.

Not, every person who would find your phone would return it. Hence, it is better to look for smartphones that come with in-built protection to protect your phone, mobile phone wallets, and other fraud activities. Rather than looking for a single authentication method, go for a two-factor authentication process for unlocking the phone through facial recognition, fingerprint and iris scan options along with the PIN.

3) Inappropriate using habits

Even if you have a highly secure mobile phone, the way you use your mobile phone can be problematic regarding payment security. The fraudsters can use the website version of your mobile phone to make purchases or payments. Many mobile phone users use Google Chrome browsers for making payments through mobiles on Android phones. And browsers like Chrome and Safari are highly risky to use for making payments.

(Video) The Rise of Mobile Payments Brings Along a Host of Complex Security Issues and Threats

If you are using mobile phones for making payments, for adding to its security, it is essential to use browser detection, which would protect the users from the frauds carried out through insecure mobile browsers. Instead of such browsers, look for secure and advanced mobile apps that come with an updated version. Lastly, there are mobile users who don’t use any kind of PIN locks or other security options on their mobile phones, which allows the fraudsters to make frauds when the devices are lost. So, look for an updated payment app and browser for adding to the security of mobile phones.

4) Protect your mobile wallet

With the introduction of mobile payment options, several payment apps came into existence. Paytm, Google Pay, Apple Pay, PayPal, and many such payment wallets rapidly gained popularity with amazing offers, cashback, discounts, etc. All such applications work when a debit or credit card is added in the mobile wallet. Details like the card number, VCC number, expiry date of the card, etc. when entered in the application through encryption which is carried out through code. Again, the mobile wallet providers also use a token number generated randomly for making a payment which is not visible to the merchants while transactions are carried out.

The cybercriminals can misuse your account numbers, but when you add any credit or debit card to the payment apps using any pubic Wi-Fi, the risks increase to a great extent. The criminals can easily spoof off all the details used for making the transaction used while registering. For protecting yourself from such frauds, use your cards with mobile wallets while you are at home or having a personal network secured with a password. Using Virtual Private Network is also the best way to look for security while using a mobile wallet.

5) Beware of App Clones

Are you sure you have installed the right application on your mobile phone? Or is it one of the app clones? Surprisingly, there are various app clones designed similar to the original apps that provide secure payment options. When any user uses such app clones and registers their banking details in it, it becomes easier for the criminals to carry out fraud activities through credit cards, debit cards, and other personal information. Such app clones come with ridiculous and poor security options that can be easily accessed by the criminals.

(Video) The bipartisan push to ban TikTok | FOX 5 DC

Both Google and Apple come with required protection while you download it for use. But the cybercriminals still have different ways of installing the clone apps that contain the virus for your device. For the iOS devices, the fraudsters use the jail-broken devices to make a fraud payment. And the best way to keep your cellphone away from such app clones is using an anti-malware tool.

The systems that contain anti-malware tools or software would protect your phone from the installation of any such app clones. Research is still on the way to find the right solution to such malicious clones. Taking an example of one such successful payment app, Klarna, Sweden-based payment app, has recently raised funding with its 3 powerful strategies.

There are various measures which can help smartphone users from such frauds or cybercrimes. Do your research, improve the strength of your passwords, use the find my phone app, use your personalized network, avoid making payments with public networks, educate your loved ones with safe mobile payment processes, and much more.

No doubt, there are some security issues people should be concern about while using mobile phones, it is still much safer compared to the plastic cards you carry in your pockets. If you use the mobile payment options, being little conscious while using it to make a transaction, there are no chances your financial details would be misused by others. So, think twice and act smart while using mobile phones for making a secure payment.

(Video) Report exposes ease of tracking U.S. soldiers' mobile phones, raising security concerns

About the author

Nirav Shastri is a Sr. Digital Marketing Strategist at Space-O Canada, the mobile application development company. He has 7+ years of experience in the Information Technology industry that inspires him to share his knowledge through articles. Nirav also works with a team of experienced creative digital strategists to generate unique and data-driven campaigns. He spends his time reading about new technology and trends.

FAQs

What are the risks of payment security? ›

  • Online Payment Security.
  • Credit Card Fraud Statistics.
  • Identity Theft Statistics.
  • Data Breaches & Cyber Crime.
  • Understanding How Fraudsters Attack.
  • Cyber Crime Detection and Prevention.

What are the disadvantages of mobile payments? ›

Mobile payments can be convenient, fast and secure. They can, however, be expensive and still vulnerable to issues with technology. In particular, if there are any issues with the host phone, mobile payments will be unable to work at all.

How do I ensure payment security? ›

Top 11 Ways to Ensure Online Payment Security as a Merchant
  1. Encrypt data with an SSL certificate. ...
  2. Make use of Payment Tokenization. ...
  3. Achieve compliance with PCI-DSS. ...
  4. Update your operating system. ...
  5. Implement 3D secure. ...
  6. Ask for the CVV number. ...
  7. Monitor for fraud and security threats continuously.
2 Mar 2022

What is mobile payment security? ›

Mobile wallets secure a user's credit or debit card information through highly-advanced methods of encryption and tokenization. Encryption is a security feature that uses a secret key to ensure private information is only accessible to the sending and receiving parties.

What are the main concerns about electronic payment? ›

The main drawbacks to electronic payments are concerns over privacy and the possibility of identity theft. Fortunately, there are many safeguards available to protect your sensitive personal information from falling into the wrong hands.

How safe is mobile payment? ›

While it may seem dangerous to load all your card information onto your phone or another device, you should know that mobile wallets are safe from credit card fraud. Your data is encrypted and cannot be seen by the merchant (or anyone) once you upload your card details to your mobile wallet.

What are the challenges in payment? ›

The Top 5 Payment Processing Challenges For Small Businesses
  • Integration issues.
  • Processing costs.
  • Multi-channel payments.
  • Security risks.
  • Lack of support.

What are the five disadvantages of mobile? ›

Constant distraction, social disruption, never-ending workdays, ongoing expenses, cause of accidents, health problems, youth crimes, etc. are some of the major disadvantages of using mobile phones.

Why is security important in payment? ›

Payment security is important to protect your business from the risk of a breach (and the financial losses you may absorb if your business is the victim of one), but it's also a benefit you can offer to the many customers who have become increasingly wary about credit card fraud and identity theft.

How do you ensure security to customers? ›

Protecting your customer's data is important for one huge reason: your business depends on it. Cybercrime is big business.
...
Five steps to airtight customer data protection
  1. Only collect vital data. ...
  2. Limit access to data. ...
  3. Use password management tools. ...
  4. Avoid data silos. ...
  5. Set minimum security standards.

What is a payment security? ›

What Is Payment Security? Payment security involves the steps businesses take to make sure that their customers' data is protected and to avoid unauthorized transactions and data breaches. Important aspects of payment security include following protocols such as PCI Compliance and 3-D Secure (3DS).

What are the three types of mobile payments? ›

Here's a look at how the three types of mobile payments work, and the conveniences they can offer both small businesses and their customers:
  • Mobile payments with a credit card. ...
  • Mobile wallets. ...
  • Digital wallets.

Why is mobile payment important? ›

This provides users with the ability to store credit and debit card details directly on their phone. Thus, wireless payments can be made in a matter of seconds. This system likewise supports online payments and even transfers between two individuals.

What are 3 factors you should consider when choosing a payment type? ›

4 essentials to consider when choosing a payment method
  • Total cost of ownership.
  • Customer preference.
  • Involuntary churn & failed payment rates.
  • Trust and safety.
  • Conclusion.

What are the important considerations for payment processing? ›

Blog
  • 5 Considerations when Selecting a Payment Processor. ...
  • Select a partner, not a vendor. ...
  • Check integration options. ...
  • Check pricing. ...
  • Check which payment methods are supported. ...
  • Get Recommendations.
10 Sept 2019

What are some of the issues you must consider before accepting online payments? ›

Here are five tips to reduce the risks associated with these transactions.
  • Verify billing addresses. ...
  • Confirm that the shipping and billing address match. ...
  • Research your credit card processor's PCI compliance. ...
  • Take security precautions with your e-commerce website. ...
  • Train your staff to watch for signs of fraud.

Are online payments safe and secure? ›

Credit cards use online security features like encryption and fraud monitoring to keep your accounts and personal information safe. Most issuers also offer zero fraud liability that ensures you won't be on the hook for a cent in fraudulent transactions charged to your credit card.

What is the safest type of payment? ›

Debit or credit cards are generally regarded as the safest. If you are paying by card, it is important to verify that the provider of the payment gateway is a company who is regulated, and has the right accreditation such as PCI Level 1.

What are three payment risks? ›

21 Basic risks in the payment and settlement systems are credit risk, liquidity risk, operational risk, and legal risk.

What is your biggest concern around cashless payments? ›

Cashless society: disadvantages

Rural communities could also be left vulnerable, because of poor broadband and mobile connectivity. People with low income or debt tend to find cash easier to manage too. Another potential disadvantage concerns security.

How do you overcome payment issues? ›

Knowledge Centre
  1. Know your customer. ...
  2. Agree payment terms in advance so you can control your cash flow management at the source. ...
  3. Invoicing correctly and promptly. ...
  4. Chasing payment immediately when it becomes overdue. ...
  5. If you deal with vendor portals make sure you know how they work.

What are the advantages and disadvantages of using mobiles? ›

Comparison Table for Advantages and Disadvantages of Cell Phones
AdvantagesDisadvantages
Businesses are able to reach more audience and grow large thanks to cell phonesCell phones can expose users to online bullying
Cell phones can ensure safety and wellbeingHas the potential to cause privacy and security issues
4 more rows
4 Feb 2022

What are the five advantages of mobile? ›

Advantages of Cell Phones over Landline Number
  • Communication. Mobile phones have eased the communication between people. ...
  • Compact Size. One of the biggest advantages of cell phones is their compact size. ...
  • Photo and Video Sharing. ...
  • Texting. ...
  • Entertainment. ...
  • Reminders, Alerts, and Notes. ...
  • Travel Purposes. ...
  • Organization.
19 Jul 2022

What are advantages and disadvantages and? ›

As nouns, the difference between disadvantage and advantage is that disadvantage is a weakness or undesirable characteristic; a con while the advantage is any condition, circumstance, opportunity, or means, particularly favorable to success, or any desired end.

What are 4 features characteristics of mobile devices? ›

Characteristics of Mobile Devices

Small enough to be carried easily. Operates without a physical connection to electricity; uses a battery to store power. Able to send and receive information wirelessly, using cellular data, Bluetooth, or Wi-Fi. Features a user interface, such as a touchscreen or keyboard.

What are 3 disadvantages of a smartphone? ›

Disadvantages
  • Even many psychological issues such as loneliness, being suspicious all the time, feeling self-centered etc. ...
  • Spending most of the time on your phone creates neck problems and sleep deprivation.
  • Exposure to unwanted things on the internet affects a child's growth mentally and even physically.
30 Jul 2019

What are 2 disadvantages of a smartphone? ›

Smartphones have changed the lives of people dramatically. Before people had to make an extra effort to send messages and purchase a camera just to take photos.
...
Disadvantages of Smartphones
  • Distraction. With a smartphone, you can be distracted quickly. ...
  • Cost. ...
  • Health Problems. ...
  • Addiction. ...
  • Risk of Data Loss. ...
  • Uncensored Contents.
17 Mar 2021

Why is security issues important? ›

Why is Information Security so important? Weak data security can lead to key information being lost or stolen, create a poor experience for customers and reputational harm. Data breaches, fraud, and cyber-security attacks are all becoming more common as people become more reliant on technology.

Why are good security measures important? ›

Security measures such as policies and regulations allow an organization to maintain, implement, administer and audit its security. If there are any threats or attacks to the organization, the measures help mitigate any risks as well as quickly implement countermeasures.

What are the 5 safety measures to protect customers? ›

  • Consider customers' needs in addition to regulations. ...
  • Always abide by ADA-Compliance rules. ...
  • Recognize which parts of the business can go digital. ...
  • Embrace technology to optimize safety. ...
  • Follow state and federal safety guidelines and regulations. ...
  • Ensure frontline workers are healthy and vaccinated.
29 Jul 2021

What are the 4 principles of security? ›

The Principles of Security can be classified as follows:
  • Confidentiality: The degree of confidentiality determines the secrecy of the information. ...
  • Authentication: Authentication is the mechanism to identify the user or system or the entity. ...
  • Integrity: ...
  • Non-Repudiation: ...
  • Access control: ...
  • Availability:
5 Jun 2022

What are the tips of security? ›

General Security Tips for Homeowners
  • Always close and lock garage doors and windows.
  • Be alert for unusual activities. ...
  • Be careful about admitting strangers. ...
  • Do not keep valuable items near windows with open drapes.
  • Empty your mailbox or have someone empty it for you.

What is secure payment processing? ›

Federal government agencies use the Secure Payment System (SPS) to schedule payments securely, certify those payments, and send the schedules to the Fiscal Service electronically.

What payment methods are protected? ›

PayPal, Venmo and Zelle: Perfect for purchases

Your card information is also kept private. When you make a payment, it goes through PayPal and then to the recipient. That way, if you run into fraud, you can file a dispute through PayPal to recover your money. The PayPal website and app are encrypted and secure.

How do you know if a payment is secure? ›

How Can I Tell If My Online Transaction Is Secure?
  1. Use a Secure Connection. Make sure that both the Wi-Fi connection and the website URL that you're using are secure. ...
  2. Use a Trusted Website. ...
  3. Read the Privacy Statement. ...
  4. Opt for Credit over Debit. ...
  5. Keep an Eye on Your Accounts.

What is payment security? ›

Payment security refers to providing rules, regulations, and security measures to protect a customer or partner's privacy, data, and transactions. In other words, payment security refers to the protection of a customer, vendor, or client's transactions.

What is security risk and an example? ›

noun. 1. : someone who could damage an organization by giving information to an enemy or competitor. : someone or something that is a risk to safety. Any package left unattended will be deemed a security risk.

What are the risks of cashless transactions? ›

The downsides of going cashless include less privacy, greater exposure to hacking, technological dependency, magnifying economic inequality, and more. Credit and debit cards, electronic payment apps, mobile payment services, and virtual currencies in use today could pave the way to a full cashless society.

Which payment method is least secure? ›

While every type of payment method has some disadvantages, debit cards are probably the riskiest form of payment. Debit cards do offer the convenience of credit since you don't have to carry cash around or write a check, but the funds you use are actually tied to your bank account.

What is the most secure method of payment? ›

1. Credit cards. The most familiar form of online payment is also one of the most secure payment methods. Credit card transactions are encrypted, which means the details are jumbled up and encoded.

What are 5 examples of risk? ›

Examples of Potential Risks to Subjects
  • Physical risks. Physical risks include physical discomfort, pain, injury, illness or disease brought about by the methods and procedures of the research. ...
  • Psychological risks. ...
  • Social/Economic risks. ...
  • Loss of Confidentiality. ...
  • Legal risks.

What are the 5 types of security? ›

Cybersecurity can be categorized into five distinct types:
  • Critical infrastructure security.
  • Application security.
  • Network security.
  • Cloud security.
  • Internet of Things (IoT) security.

What is considered a security concern? ›

What is a Security Issue? A security issue is any unmitigated risk or vulnerability in your system that hackers can use to do damage to systems or data. This includes vulnerabilities in the servers and software connecting your business to customers, as well as your business processes and people.

What is your biggest concern around cashless payment? ›

Cashless society: disadvantages

Elderly people may be less comfortable with tech and less able to make the switch from physical currency. Rural communities could also be left vulnerable, because of poor broadband and mobile connectivity. People with low income or debt tend to find cash easier to manage too.

What is one disadvantage of using digital cash? ›

Forgery: Digital cash systems pose some unique risks. Since cash is digital, it is likely that hackers might break into the system. They may generate more coins even though they have not paid anything to earn that cash. When excessive coins are generated, the value of the other coins in the system is reduced.

What are the risks that a bank faces? ›

The major risks faced by banks include credit, operational, market, and liquidity risks. Prudent risk management can help banks improve profits as they sustain fewer losses on loans and investments.

Videos

1. Trapped in the Metaverse: Here’s What 24 Hours in VR Feels Like | WSJ
(Wall Street Journal)
2. WATCH LIVE: Jan. 6 Committee hearings - Day 6
(PBS NewsHour)
3. Security and Risk Findings from the top 300 North American Mobile Banking Apps.
(Zimperium)
4. Former Pres. Obama trolls Pres. Biden
(ABC News)
5. President #Biden Explains Why He Fell Off Bike
(NBC News)
6. Top 5 Mobile Security Stories of a Crazy 2020
(Zimperium)
Top Articles
Latest Posts
Article information

Author: Gov. Deandrea McKenzie

Last Updated: 02/22/2023

Views: 5796

Rating: 4.6 / 5 (66 voted)

Reviews: 81% of readers found this page helpful

Author information

Name: Gov. Deandrea McKenzie

Birthday: 2001-01-17

Address: Suite 769 2454 Marsha Coves, Debbieton, MS 95002

Phone: +813077629322

Job: Real-Estate Executive

Hobby: Archery, Metal detecting, Kitesurfing, Genealogy, Kitesurfing, Calligraphy, Roller skating

Introduction: My name is Gov. Deandrea McKenzie, I am a spotless, clean, glamorous, sparkling, adventurous, nice, brainy person who loves writing and wants to share my knowledge and understanding with you.