A fellow Internet safety expert by the name of John Silios, who specializes in the area of identity theft, wrote an article about why we shouldn't be using mobile banking on our cell phones just yet. Seven reasons that John outlines include:
Top 7 Reasons Why Mobile Banking Apps Aren’t Yet Safe
- Because most app stores (e.g., Android Marketplace) don’t review apps for security, it is very easy for criminals to post malicious apps that steal information from your mobile device (like your bank account numbers).
- The average smartphone or tablet user has installed no security software on their mini-computer (that’s what smartphones and tablets are), meaning that they have only a fraction of the security of a laptop or desktop.
- Detected malware developed for the Android platform alone has increased by 400% in the past year.
- The technology that keeps apps separate on your smartphone or tablet doesn’t separate them out into private sandboxes, meaning that one app can read the juicy details stored in the other without much difficulty.
- Most smartphone and tablet users don’t even have a basic passcode set up on their device, giving anyone with access to it potential access to your bank account.
- The temptation to use free WiFi hotspots at cafes, airports and hotels lures people into banking over insecure networks (it’s easy to sniff (spy on) what you send over these free, unprotected networks.
- There is no clear legislation (that I have seen) governing your rights to receive a refund if your bank account is fraudulently emptied due to mobile bank app insecurity. Is the burden of proof on the user to protect their handset and software, or on the bank. Only precedent and real live court cases will answer this question over time.
I agree with John, this technology is still in its infancy and the above noted concerns need to be ironed out first. So although convenient, we should be waiting a few more years before using mobile banking on our smartphones.
Darren
THe Digital Sheepdog
