Customer Concerns and Mobile Payment Security

As we continue to delve deeper into the Digital Age, new products and services are introduced that push the envelope further in terms of privacy and access. Social media, online banking and health profiles are just a few of the ways that people manage their lifestyles online. While online fraud cost e-retailers a collective $3.5 billion in 2012, that figure is down over the last few years as mobile payments become more secure, according to Internet Retailer. With people becoming more comfortable sharing personal and financial information online, it is more important than ever for both consumers and businesses to work together on security and protection through identity verification.

Vulnerability of Information

Fraudsters continue to search for and find new ways to gain access to personal data. Emails, social media profiles and banking sites are vulnerable to a cyber attack and raise concerns among consumers. Fraudsters can also simply purchase a legitimate identity from the black market. If a financial account is accessed by a criminal it can lead to negative effects that extend far beyond one website. Users may recycle passwords for multiple accounts online and one security breach can result in a domino effect that leaves a trail of headaches in its wake.

Mobile Payments and Restricted Access

One of the major security concerns related to mobile payments is that apps are often left in the “on” position by consumers. This means that even when an app is not open and active, consumers choose to automatically log-in with usernames and passwords to be able to quickly access information and make payments. Problems instantly arise when a phone is lost or misplaced because the finder has the ability to begin purchasing items without restriction. However, with the proper security checks in place, businesses that accept mobile payments from customers can ensure that customers’ data is protected from fraudsters.

Identity Verification Methods to Eliminate Concerns

While companies may focus on fraud prevention for customer-not-present transactions over the Internet, it is also necessary to have a system in place to stop fraudulent activity when it comes to mobile payments. End-to-end Identity verification platforms give companies the tools they need to ensure the customer is who they say they are while securely processing more customer transactions no matter how they pay for their goods/services. Whether someone is ordering from his or her phone, online or through a call center, security measures can be put in place to authenticate customers before a purchase is made. Educating customers about the security features of phones, such as passcodes, and requiring proof of identity adds protection to the process in a day and age where consumers are concerned about the safety of private information.

Company Bio

IDology, Inc. provides businesses with innovative technology solutions for identity and age verification. Founded in 2003, IDology provides streamlined processes to help increase customer acquisition while improving the customer experience and meeting industry compliance requirements.


1.      Demery, Paul, “Online fraud costs e-retailers $3.5 billion in 2012,” internet RETAILER, 28 March 2013, Web, 29 May 2014