Mobile wallets continue to shake up the payments industry with new offerings entering the market on a frequent basis. The speed and convenience of these emerging payment methods make them attractive options for busy, tech-savvy consumers.
Just like other payment methods, however, mobile payments run the risk of fraud. Community financial institutions (FIs) should educate their cardholders on the following best practices to avoid falling victim to fraudsters taking advantage of mobile payment platforms.
- Know your app — Remind consumers to only install apps from trusted sources. Some applications are not what they appear to be. While an app may advertise free games, it could instead be designed to steal personal data. Encourage consumers to review user ratings and reviews prior to installing a mobile payment app.
- Password protection — The importance of enabling password settings and creating unique passwords on mobile devices cannot be stressed enough. Educate consumers on the ways these additional layers of security help ensure only appropriate users can access their devices.
- Connections matter — Advise consumers to be cautious of any network to which they connect their devices. Remind them secure networks will require passwords and will be identified as Wi-Fi Protected Access (WPA) or Wi-Fi Protected Access II (WPA2).
- Keep it to yourself — Instruct cardholders to never share sensitive information over the phone, via email or mobile apps. Remind consumers of the importance of keeping passwords, account numbers and social security information private.