Identity Theft
Mobile Banking Poses Threat of Identity Theft
Nearly half of all cell phone users currently have access to mobile banking features. And according to a recent Javelin mobile-banking forecast study, half of all cell phone users will be regularly be using those features in five years.Banking from a cell phone, iPhone, or PDA to check balances and initiate money transfers is becoming increasingly popular. And banks continue to promote their growing number of m-banking services. But the big question is: How safe is it from an identity theft perspective?It’s true that account numbers are usually shortened and that encrypted servers are used to transmit data. So those measures go a long way towards making mobile banking secure.But some features, like text messages from a bank, remain unencrypted, making them vulnerable to interception. M-banking texts could include notifications about account balances, payment verifications, and transactions. Even if you delete the initial message, the text may still be stored in the phone’s hard drive. If your phone is lost or stolen, that information could be harvested if the ID thief is tech-savvy enough.Also, not all phones are compatible with anti-virus software, or don’t come with it installed (even if they have the capability to browse the internet). But if you’re using your phone to bank, you should really have virus protection. Identity thieves may not be targeting cell phones yet to the same extent they are computers (i.e., phishing, spamming, spreading viruses, and hacking into accounts), but it’s only a matter of time before they start.If you are interested in banking online, or have already started, talk to your bank to ask about its mobile banking security standards. To know if you’ve already been targeted by an identity thief, check your monthly bank and credit card statements for fraudulent transactions. Also, don’t forget to regularly check your credit report from all three credit reporting agencies to make sure no one is opening unauthorized accounts in your name.Remember, it’s your responsibility to guard your identity. Just because technology like mobile banking exists and is gaining popularity doesn’t mean it’s 100% safe to use. Always do your homework and take extra precautions to make sure your
