The 2015 Mobile Payment Security Study, conducted by ISACA, surveyed over 900 cybersecurity professionals and revealed that 47% said that mobile payments are not secure and carry significant perceived security risks.
87% predict that there will be a large increase in the number of mobile payments data breaches over the next 12 months. Chargebacks911 COO, Monica Eaton-Cardone, says that this perceived lack of security has had a negative impact on its adoption.
ISACA ranked the vulnerabilities associated with mobile payment based on the survey data:
- Use of public WiFi 26%
- Lost or stolen devices 21%
- Phishing and shmishing (phishing via text) 18%
- Weak passwords 13%
The findings show a discrepancy between consumer interest and actual use of mobile payment technology. 57% of consumers were interested but only 3% of mobile phone owners used their mobile wallets for in-store purchases in the past three months.
According to Future Market Insights, the global mobile payment market is projected to be worth $2.8 trillion by 2020. According to LexisNexis, payment card fraud in the United States rose by 38% from $23 billion in losses in 2013 to $32 billion in losses in 2014.
Eaton-Cardone says EMV, which relies on the customer’s past history to determine if the purchase is valid or not, is the best option for fraud protection. A micro-chip stores sensitive information, buying patterns, and spending habits. She says EMV will soon become the go-to for consumers and merchants alike..