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Tuesday, May 22nd

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Bank Fraud? There's an App for That

Seemingly legitimate mobile-banking applications could put your account information or any other data stored on your phone at risk., Mobile banking once entailed little beyond the ability to receive a text message with your account balance. But these days, it's finally starting to live up to its name. Virtually every large bank and many regional banks and credit unions have rolled out applications that allow their clients to use a mobile phone for fund transfers, bill payments and even check deposits.

But with the increasing popularity and convenience of mobile-banking apps comes a big caveat: the risk of downloading and installing a fraudulent application that could steal your account information and, potentially, any other data stored on your mobile device. In other words, the next generation of phishing scams is about to explode, and it has the potential to do much more damage than earlier versions. The trend is still in its infancy, but there have already been instances of potential fraud. In January, Google pulled 50 applications from its Android Market in response to concerns that they might be malicious. All apps were uploaded by the same developer and claimed to offer access to bank accounts from a variety of institutions, from big names such as JPMorgan Chase, HSBC, U.S. Bank, USAA Read more...
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