Each day we are bombarded with headlines about successful attacks against mobile payments and the massive rise in mobile payments fraud in general. Yet none of this should be a surprise, and the reasons are simple.
First, we need to understand that the reason we read so much about the losses in the press is that negativity is often the only thing that makes the news. When was the last time you saw the headline; “Mobile Applications Work, Hackers Thwarted!”
The fact remains that for every transaction lost, thousands or even millions of transactions work just fine. However, this sells neither newspapers nor security products.
That said, mobile applications are notoriously insecure. Some of the weaknesses are entirely avoidable and others will be resolved only with a significant shift in both payment methods and the capability of authentication and identity mechanisms.