Do you feel secure banking via mobile phone?
Javelin Strategy and Research conducted its annual study on mobile bank security called – “5th Annual Mobile Security Report: Mitigating Security Risks Transforms the Mobile Banking Channel”. More than 3,000 consumers were surveyed about their mobile banking channels: web browser, application, and SMS texting. Web browsers were used by 44% of the responders; apps used by 25% and texting used by 19%. According to Javelin, texting is the least secure method and apps are the most secure.
Three channels
1. SMS texting is a form of phishing called SMiShing which uses text messages to trick consumers into giving out personal information. This explains why it is the least secure of the three.
2. Mobile browsers are subject to viruses and can be prevented by downloading security software. Responders used this the most and thought it was the most secure.
3. Downloadable apps are the most secure. The financial institutions have more control on the app and can build security into it that can wipe out data if phones are stolen. Consumers also have more control over it.
Mobile banking is on the rise, jumping to 28% of all mobile phone users in 2011, but security remains a top concern. “We’re seeing the second wave of consumer adoption of mobile banking,” said James Van Dyke, President, Javelin Strategy and Research. “It used to be that consumers didn’t use mobile banking because they didn’t see the value in it. They weren’t as concerned with security. Now, more consumers cite security as the main reason they don’t use mobile banking. Our analysis and recommendations will help financial institutions address security concerns and gain a larger installed base of mobile bankers.”
Financial institutions are not usually the leaders in technology. It may take some time to build in the security necessary for you to feel comfortable using your mobile phone for banking.
Credit Damage Expert, John Ulzheimer, is the President of Consumer Education at SmartCredit.com, the credit blogger for Mint.com, and a Contributor for the National Foundation for Credit Counseling. He is an expert on credit reporting, credit scoring and identity theft. Formerly of FICO, Equifax and Credit.com, John is the only recognized credit expert who actually comes from the credit industry. Follow him on Twitter here.
