Banks and credit card agencies are gearing up security for financial transactions over cell phones and other handheld devices.
Aware that a growing number of consumers — especially those under 35 — are comfortable using cell phones as digital wallets, leading financial institutions are concocting mobile-security options to protect them from hackers and cyberthieves.
“Mobile banking is where online banking was a decade ago. It’s starting to take off,” says Richard Crone, a Silicon Valley consultant who follows electronic-payment services. “Cell phones are more ubiquitous than PCs — across ages, incomes, geography — and have become payment instruments. That makes them targets.” A sampling of what’s being offered:
Wachovia’s 5.9 million customers now have the option of using a cell phone or personal digital assistant to check accounts and transfer funds. The mobile service requires an encrypted — or digitally scrambled — user name and password, says Jason Ward, director of interactive design at Wachovia.
Early next year, Citibank will test a program to let consumers check balances, pay bills, transfer funds and search for a nearby ATM from cellphones. Citi Mobile requires an access code and operates on an encrypted system. The service can be immediately disabled if a cellphone is lost or stolen.
Under a system being tested by Visa USA, mobile-device users need to enter a password to perform financial tasks. If a cellphone is lost, users can immediately disable all payment applications on it from another phone or PC.
MasterCard Worldwide is offering mobile authentication, which lets consumers shop or bank with specific credit cards and debit cards over a cellphone. They are required to enter a PIN, which assigns a one-time-only password for each transaction.
Financial institutions are building digital defenses as mobile viruses rise.
They have increased from 34 in 2004 to 162 in 2006, says security…
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