London, UK. December 15, 2011 – Security experts questioned in a new survey are warning that consumers are not prepared for the security risks inherent in the use of mobile wallets and mobile banking. ValidSoft and FSTech surveyed over 100 Chief Information Security Officers (CISOs) and heads of security to gauge sentiment about security in the retail banking industry.
The survey asked questions about card-related fraud, reducing fraud, uptake of mobile wallet and the use of voice biometrics in mobile banking. Key findings in the survey are shown below:
Mobile wallet
The mobile wallet market is expected to expand in 2012. Respondents were asked whether they thought consumers were ready for it:
- 71% thought that UK consumers were not ready for the mobile wallet.
- 47% believe that security is the most likely factor to prevent UK consumers from accepting the mobile wallet next year
M-banking
Aside from the mobile wallet, m-banking (or mobile banking) is also expected to increase. Datamonitor expects UK usage to not only accelerate and match global uptake, but also to overtake the internet as the main way for consumers to bank.
Banks were asked whether m-banking has the potential to increase or decrease fraud:
- 63% believed that m-banking could decrease fraud
Banks were asked how they feel the public views their efforts to reduce fraud
- 36% believe that consumers want banks to do more to reduce fraud
When asked whether voice biometrics could be used to verify transactions:
- 49% believe that voice biometrics have a role to play in tighter security
Card-related fraud
- 99% of security experts responding to the survey believe that tackling card-related fraud is either essential or very important
- However, when asked whether it was important to shop online securely, only 54% said that it was essential
- Respondents rated cross-border fraud, domestic fraud and false positives as the three most urgent challenges to address.
A detailed report on mobile money, banking and payments will feature in the next issue (February-March 2012) of VanillaPlus. You can read the digital edition online on this site, or register to receive a print copy delivered to your address (it's FREE for qualifying readers. To find out if you qualify go to: http://www.vanillaplus.com/subscribe/ ).
