Paying with the mobile phone sounds comfortable, but also frightening: 65% of consumers in Europe believe that mobile payment via a smartphone is uncertain – according to a recent survey by Eset Security Services. Although younger consumers have a little more confidence, but also between the ages of 18 and 29, 53 percent more than half think that numbers are not safe through a smartphone.
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The Consumer Protection Foundation has also received some reports that irregular payments have been deducted from mobile payments. People have had some big concerns about the security of such payment solutions, according to CEO Sara Stalder compared to 20 minutes.
Did you have a bad experience with mobile payments? Have there been strange reservations on your account or was your account abnormally empty? Or was it suddenly everywhere advertising and you suspect that this is the result of an application for payment?
Fear is well-founded, says Oliver Hirschi of the University of Lucerne (HSLU) for up to 20 minutes. The IT security specialist says that consumers need to show a certain degree of confidence in payment application providers: "It's very difficult for a user to determine if each application is truly secure."
Whether and how well encrypted transactions are, plays an important role – if the link is insufficiently secured, a third party can secretly increase the amount of payment or otherwise manipulate payments.
In addition to the security of the actual payment process, there is also the risk that payment applications will secretly collect more data than they really need. This is shown, for example, in the permissions required by the application on your smartphone. "The payment application certainly does not need access to my calendar data or phone lists," says Hirschi.
Consumers are worried that mobile payments will turn users into glass buyers – they will no longer be anonymous, as with money, but huge amounts of data are stored during each transaction. These data could then be used to analyze their sales behavior for advertising purposes.
According to Hirschy, it is particularly important that shopping and pay data are not related to usage data and location. Suppliers such as Twint or Apple Pay should not know exactly what the buyer buys – and the balance on the customer's account does not apply to the seller.
It is also important that mobile payments are made through a smartphone. Because not only the security of the application for payments, but the whole device is crucial for the security of mobile payments, says Hirschi: "With the computer knowing that you need to preserve and protect everything from malicious software, smartphones are much less aware of the many consumers. «
For this reason, there is a high risk of downloading a fraudulent connection or similar malware to the phone through another application. Such malicious software can execute or modify payments in the background, explains Hirschi.
Read tips for how to save mobile payments on your phone later 20 minutes later.