With the rise of Apple Pay, Samsung Pay and other such payment services that can be linked to your phone, watch or other technology, comes a natural rise of risk. This type of technology will only increase and develop - offering more and more payment options to consumers.
What does this mean to the average SME?
The rise in personal and wearable devices has multiplied the options people have for paying for items. And often, people are using unsecured WIFI networks, as well as storing personal data such as passwords and usernames on several devices.
Alongside the growth in wearables comes the growth in malware that can affect it. In 2014, there was a 61% increase in Android malware alone. There has also been a dramatic increase in malware and phishing emails which have increased 50% and 233% respectively in 2015.
The significant rise in ecommerce spending on mobile devices means both businesses and individuals must protect/educate themselves against the threat of cyber hacking, and understand that appropriate security tools needs to be ‘baked in’ to these systems to avoid them becoming obsolete and at risk. A recent study carried out in the UK and US by a network security analytics company found that due to the demand for WIFI hotspots in public places, people are likely to try and connect to any network they can to access the internet and worry about the potential security risks later. This suggests obvious security risks for consumers and merchants.
The mind-set of the industry needs to change towards baked in security, rather than relying on legacy security solutions which may already be obsolete or vulnerable to cyber-attacks from experienced or resourceful criminals. Additionally, as well as the responsibilities of businesses to keep their customers data secure, it is also up to consumers to make sure they are putting best practice into action, by having adequate password/security checks on their devices and accounts and making sure they aren’t using ‘jailbroken’ or ‘rooted’ devices which are much more vulnerable to hacking.
These days, the most vulnerable spot in your company’s cyber security walks in and out of your front door multiple times a day. That’s right – long gone are the days when your data lived safely behind firewalls. Sensitive information now lives within mobile clothing and accessories such as wristband fitness trackers, transaction-enabled devices and even bras. Welcome to the brave new world of wearables, the focus of the Travelers Indemnity Company’s, or simply Travelers, latest entry in its Global Technology’s Risk Advisor series, “The Wearables Revolution Has Arrived” (PDF).