Mobile Payment Security & Cyber Liability

Nowadays, we choose convenience. Why? Because our days are busy and chock-full of work and family matters. Mobile payments make paying for services and goods easier, but they come with their own set of risks. Read on to see what kind of risks using mobile payment may present and how you may improve you and your family’s cyber security.

What are mobile payments?

Mobile payments are any payments made by using your personal mobile device. Generally, this consists of two forms of mobile payments: in-app purchases/online purchases or the usage of a POS terminal in a physical store. Payment revenue via mobile is colossal and expected to surge in the coming years. There are five different means of making mobile payments:

• Mobile device as Point of Sale (POS) – users can attach a card reader to their device directly that processes payments.
• Mobile wallet – users may use a near-field communications application to enable the exchange of payment between devices.
• PayPal or other types – mobile payments that are not using a mobile wallet or mobile phone as a POS
• Closed-loop mobile payment – when businesses have their own mobile payment system
• Direct carrier billing – when payments are sent directly to mobile phone account/vendors are paid directly via mobile carrier

Vendors and businesses like using mobile payment because they do not require customers to carry around cash or credit cards, theft is less likely, it’s more efficient, it’s more flexible/easier to pay, and smaller businesses can become more competitive with chain companies.

All in all, it would seem like a win-win, right?

Unfortunately, there are risks with mobile payments. It may be beneficial to businesses, but as an enterprise using a mobile payment system or even as an individual making a purchase, there should be some awareness of the possibility of a data breach.

What are some mobile payment security issues?

Despite their convenience and benefits – both to businesses and to customers – mobile payment has numerous areas where security may be an issue. Here are some examples to be cautious of:

Human error

Human error is the number one reason for security breaches in multiple scenarios – with larger enterprises and smaller ones. Hackers know this and tend to depend on human error when a cyber attack is plotted out, especially as most breaches begin in the form of opening emails with malicious attachments and clicking on unstable links. With mobile wallets, consider loading your cards onto your phone using your own personal WiFi, as this is much safer than depending on a public network.

Poor user security

Weak passwords or overused passwords are a common means of being hacked. Try using proper, strong passwords with numerous letters and numbers combined, upper case and lower case, and even symbols. If possible, try to change your passwords once a month.

Phishing

Phishing has existed in a number of forms, but due to the increase in digital usage, it has evolved. Mobile devices have now become a prominent victim of cybercrime. If you are making an online payment through a website, pay attention to the URL – especially when on a mobile device, as sometimes things may be harder to notice due to the size of your screen.

Stolen devices

Our mobile devices have replaced so much, including our wallets, GPS, business cards, and even our credit cards. If your mobile device is stolen, you may be at risk of your personal information and sensitive data being stolen.

Network breach

Public WiFi is compromised when hackers create fake connections or even “sidejack” (by accessing websites via wireless networks.) Hackers can interrupt transporting or migrating data, including virtual payments. For your own safety, try to avoid making payments or sending sensitive data while on a public WIFI network.

Understanding mobile payment security risks

With anything, there are always risks. The best way to avoid becoming the victim of a cyber attack is by ensuring you are taking the steps necessary to reduce your risk. There may always be some degree of concerns with mobile payment security, but with adequate caution and know-how, you can look after yourself, your family, and even a business that utilizes mobile payment.

The best way to prevent a breach, cyber attack, or virus is to practice proper cyber security. This includes:

• Utilizing a VPN/Virtual Private Network. Choose one with caution, as these may also be compromised at any point.
• Don’t use the same password for everything and make proper, strong passwords with lower case and upper case, numbers, symbols, and do not include personal information. If you have numerous accounts and struggle to remember passwords, use a password manager.
• Be vigilant and use your own private network over public networks for downloads and payments.
• Use common sense when downloading apps and delete any suspected phishing scams.
• Use two-factor authentication to open your device, like the combination of a PIN number and fingerprint.
• For businesses, ensuring that employees have the proper training and adequate education on cyber security risks.

Finally, while we can do the best we can to avoid risks such as cybercrime, things can slip through the cracks. If they do, having Cyber Liability insurance may help – for your family and/or your business. Cyber Liability Insurance can offer coverage if your sensitive data is stolen, you become the victim of ransomware, malware, phishing scams, cyberbullying, and more.

Contact Excalibur Insurance for more information about Cyber Liability Insurance and see how it can help preserve your peace of mind for your family’s security while making mobile payments.