Mobile financial systems present privacy and security...
Mobile financial systems present privacy and security concerns for consumers and raise the risk of data brokers gaining consumer information without explicit consent, commented the FTC Thursday to the Consumer Financial Protection Bureau (http://1.usa.gov/1tHQPkH). It acknowledged that “mobile technologies provide…
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consumers with unprecedented efficiency and convenience to conduct financial transactions.” The comments responded to a CFPB request for information this summer. The FTC mentioned mobile banking and location-based discounts as several perks to mobile finance: “Some mobile technologies, such as mobile carrier billing, may be especially beneficial for unbanked and underbanked consumers.” But with the benefits come risks, the FTC said. “Consumers using mobile financial services may be at risk for liability for unauthorized charges or unfair billing, as well as the increased collection, use, and sharing of consumers’ personal and financial data,” the FTC said. “These issues may raise particular concerns for the underserved or economically vulnerable consumers using these services.” Mobile payment security has been widely discussed recently, after Apple revealed its mobile wallet platform Apple Pay, which lets customers upload credit card information and simply use their phone to pay at participating retailers (CD Sept 10 p17). Apple said Apple Pay -- by generating a one-time-only number for each transaction and limiting credit card number exposure -- is more secure than credit cards (CD Sept 10 p21). The FTC issued a 2013 full report on mobile payments (http://1.usa.gov/1qodt03), which highlighted “the importance of clear disclosures about dispute resolution and liability limits and the need for mobile payment companies to provide greater transparency surrounding their data practices,” said the commission.