Security concerns in mobile payment

People are still reluctant to use their mobile phones as an alternative method of payment, this is probably because of security concern that often haunt mobile devices. Either we’re afraid of miss-placed our mobile phone, lost it somewhere or in worst scenario is someone could stole it.

But Erik Larkin (PC World) has made a very good point on using your mobile phones to do on-line banking, or for on-line transactions. Due to various OS platforms in mobile phones, hackers are not yet targeting them. And hackers are more likely to set their eyes on larger fish that uses desktop/PC OS, the most popular platform used will become their favorite prey.

In fact, Tyler Faux has also pointed out the very same arguments about mobile phone’s security measures in his Palm Addict Podcast #109. Tune in to Tyler’s podcast or hit this link to download it right away, and find out his insight on Linux-based of Palm Nova OS (I know I’ve missed something in my post there, thank you Tyler!).

Sure, there are known malwares that have already attacked mobile phones. But they are still rare to occur, and we should more concern about traditional phishing that targeted mobile phones. Such practice for example: we’ll get “smishing” (SMS scams) that contain warning about credit card accounts, and tell us to contact a VoIP number where the hackers can perform “vishing” to record the PIN numbers.

And let’s not forget about “phishing”, which according to Dave Jevans, chairman of the Anti-Phishing Working Group; phishing is not exclusively for desktop OS & web browser anymore. Because whenever you clicked on phishing messages that arrives in your email inbox (opened with your mobile phones), the mobile web browsers don’t have yet antiphishing toolbars so you’re prone to the same desktop phising attack.

If using mobile web browser to do on-line transactions & banking is not your style; then you might remember the NFC technology that I talked about last month in my post here at PA, or other alternate like Unstructured Supplementary Service Data (USSD). Research firm Gartner has predicted that in 2008, there will be 33 million mobile payment users worldwide. And Asia Pacific region is projected to hosts 85% of the worldwide total, said by Sandy Shen (Gartner’s research director).

There are three main reasons mentioned by Shen in Carol Ko’s (PCW Business Center) article; on why NFC & USSD could be more successful in Asia. First is because Asian countries such Philippines and Japan have boldly launched these services, their neighbor countries will easily follow too. Second, Asian countries with huge population (China, India, etc.) will see the benefits of using mobile payment rather than using the insufficient banking & payment infrastructures; for instance is using mobile payment in public transportations. The third is more in Asian people’s attitude to willingly try new services, while European people have higher sensitivity on mobile payment securities.

Both Shen and Larkin are agreed on one thing; should this mobile payment build its momentum, then it’ll become famous and everybody will use it. After that, it is most likely security concerns will also rise along with the services offered and the OS platforms that support them.

We’ve witnessed ourselves that famous mobile OS like Windows Mobile is used in many mobile phones, iPhone also is going to be desired not only by mobile users but also by hackers. The PC’s viruses are being mutated to attack Mac OS X, this kinda behavior will definitely be passed along to their younger siblings: the mobile versions. And let’s not forget the unborn OS ~yet~ from Google; the Android. With so many mobile manufacturers & software developers jumping into Android platform bandwagon, hackers will also be investing into Google’s hard works of open mobile platform: made by everyone for all.

Then, why not hackers targeted every platform available? The answer is the same as every software developers have in mind, and also the same as what my fellow PA’s Associate Writer; Mamading Ceesay has mentioned before in his post: “It is not possible to create application code targetting both the iPhone and Android in the same way because of the differences between the languages and frameworks used in the respective SDKs. This in effect means that developers must make a larger bet on which platform they should target,…”

Scary enough for you now? If not, then let us all wait for Palm Nova OS in 2009. Where not only Palm fans will be switching to it, but if Palm really delivers its usefulness of old Palm OS Garnet into Palm Nova OS; other platform users might change their mind too. Wha..? Do I hear someone said: “…Palm OS is dying??

[blogged with my Treo 750v]