M-payments will become much more secure than
card payments as payment via plastic is growing “riskier by the
day” says a Federal Reserve Bank of Atlanta myth-dispelling
blog.
Cindy Merritt, assistant director of the Retail Payments Risk
Forum writes that the technologies that enable our current payments
are becoming increasingly obsolete and vulnerable to fraud as the
US remains reliant upon mag-stripe technology.
In a bid to dispel the myths surrounding mobile banking and
payments, Merritt claims that far from being less secure than card
payments, mobile payments will be a “much more secure payment
device than the plastic cards we use today.”
She says the security functionalities resident in the mobile
phone provide authentication capabilities that do not exist in the
current payments environment.
“The ability to add passwords and GPS location functionality to
the handset represent additional security controls to accessing
payment instruments in the future mobile wallet,” writes
Merritt.
“Today, there are no locks on your leather wallet to preclude a
bad actor from stealing your credit and debit cards and using them
for illicit activity.”

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