Mobile banking is too risky in the eyes on consumers

According to a recently published report entitled “2008 Mobile Banking Security Standards” consumers are too wary of security to use their mobile phones for banking transactions. It appears a lot of people don’t want to have to suffer any compromises.

73% of consumers that were part of the study feared that hackers could access their handsets remotely. Not only that, the consumers were also worried about intruders fiddling with their mobile data through Wi-Fi, as well as the worst case scenario of having their mobile phone lost or stolen.

It appears that to consumers, the small convenience of being able to use his or her cellphone for mobile banking transactions instead of whipping out cash or a credit card isn’t worth the risks that it entails. However, the same report being cited here earlier suggests ways of making the general public trust mobile banking more.

First, is “by guaranteeing reimbursement of any fraudulent use of financial accounts.” Another is by “using a login method beyond user name and password, and providing e-mail alerts for particular conditions like a large withdrawal.” A well-designed security program could also be put into place.

Perhaps when mobile banking service providers such as Visa (which recently launched its mobile banking application for Android) start addressing these issues, consumers will change their minds and perceptions about mobile banking security.

Via Information Week

Author: David Gonzales

I run the blogosphere.

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