What are The Security Concerns in Mobile Based Payment System?


The recent changes in technology are modernizing everything. Whether it is transportation or medicine, modern science is revolutionizing everything. One of the biggest success stories of consumer-oriented science is the mobile phone. It has helped people do a lot more than communication, which was its original and intended purpose. In fact, mobile phone technology is even revolutionizing the economic system by reforming the system of currency. Gone are the days where paper currency was the only option for payment and the only medium of exchange. Nowadays, new innovative methods of payment are being developed. The most revolutionary of which is the digital currency. Mobile phones are nowadays being used as digital wallets for the digital currency. This mode of payment is very easy-to-use and flexible.

However, there are major concerns about it being unsafe. The limitations of the mobile payment framework have seriously hindered its proper development. Very few people are using this framework and only large vendors are accepting this mode of payment. Thus, it is important to know about the limitations of this platform, so that one can understand where the development is going wrong and how to eliminate the limitations.

What Are The Security Concerns?

The limitations of this relatively new technology are numerous, ranging from easily visible and deeply hidden. Many research organizations are currently researching mobile payment techniques and finding their problem and ways to fix them. One such organization is the non-profit organization ISACA. They conducted certain surveys in 2015 for which they asked the opinions of 900 cyber-security experts regarding mobile payment technology. As expected, only about 23% of the experts believed that mobile phones can be used for transactions in their current technological level, while 47% didn’t think mobile devices are secure at all.

The most frightening finding was that about 87% of the experts believed that more security breaches may occur in the future. Thus, mobile payment vendors will really need to upgrade their technology to keep up with the hackers.

The Threat Of Hacking

Every digital item in this world is vulnerable to hacking. It doesn’t matters if it is a digital lock or a pacemaker, it can all be hacked. And if the device is connected to a network, then hacker is even easier. No matter how secure is the device; hackers will evolve to find a loophole. Not even many household devices are safe from hacking. A hacker can easily break into the device of an unsuspecting individual. Thus, it is important to strengthen the security of the transaction and the device.

To Err Is Human

Another major problem is human errors while transacting using mobile devices. A man will always commit a mistake due to different factors, such as not being careful or not having enough skills to operate. These problems can be solved too by strengthening the various parts of the transaction and also by training the individuals using the technology. These errors not only affect

an individual, but a single error by an employee of an organization can even compromise the complete organization.

Should One Even Use This?

One of the greatest challenges for the development of mobile payment techniques is the human nature itself. The physical currency has been in existence since the dawn of history and commerce. In fact, paper currency has such an impact on the people that the first thing that comes in mind while thinking of the term money is paper currency. Thus, mobile payment vendors will have a really hard time while convincing the people about the feasibility of mobile payment. Combine this with the popular fear for hacking, and you will get a technology which will almost not find popular usage until at least all the security loopholes have been eliminated.

Phishing On The Internet

Online scams have been in existence till the dawn of e-commerce, and it will find a completely new definition in the age of mobile payment technology. Phishing sites refer to those sites which expose the user to malicious elements, which try to steal data by false information. While phishing can easily be prevented by a cautious mind, normal people will have a hard time avoiding these

malicious phishers in the murky depths of the Internet.

Value Of e-money

E-money, which is transacted during a mobile payment session, does not have any global standard, unlike physical currency. This makes it very hard to determine the value of e-currency. This proves to be a major issue which can seriously hinder the usage of mobile payment by making it cumbersome for both the buyer and the seller. However, proto-standardisation of e-currency is occurring as major companies such as EMV (Europay, MasterCard, and Visa) and AMEX are integrating and accepting and expanding their digital payment services all over the world.

Unsecured Public Networks

Exposing personal information over public networks such as Wi-Fi is almost always asking for trouble. Hackers can easily get access to such data over an unsecured network. Thus, while paying over such networks, SSL and VPN connections are a must in order to remain anonymous and stop hackers from accessing private data.

Many More Threats

With passing time, more and more exploits are being researched by the hackers which can heavily compromise both the private and financial information of the users of mobile payment technologies. Hackers may use several new techniques in the future involving botnets,

manipulation of data, identity theft and loophole exploits. Thus, a lot of work will have to be done in order to make mobile payment a feasible option for transactions. Mobile payment technology has a lot of potential, which must not be wasted at all.

The biggest risk related to mobile payments is also the biggest risk related to any electronic device – hackers. More and more people are using mobile phones, more than 4 billion. And this number is expected to increase at a furious pace over the later years.

As mobile phone is a household device now, storing personal information, it is very important to enhance the security of the devices to prevent snooping of data for malicious deeds. This is not at all easy, as hackers adapt themselves and their techniques with time. This is the biggest limitation of mobile payment, as it not only involves the personal information of the user but also the financial details of the user, which if acquired by malicious people, can destroy the life of the user. Also, as this technology is relatively new, it is quite limited and unsecured. This is just the reason why people aren’t massively using this technology, even if they possess a mobile device. However, with proper implementation of security in place, it can certainly be the new form of payments worldwide.

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