More than 45 million people will use mobile banking apps by 2014, and nearly 1 billion consumers already use some form of remote banking, according to industry studies. Mobile banking transactions are fast and offer an easier way to pay bills, deposit checks or monitor your accounts.
While convenient, mobile banking poses risks to your financial security and identity. Security attacks on smartphones have climbed to an all-time high. In the last 12 months, for example, attacks on Google’s Android smartphones have quadrupled, and smartphones running
Java-based applications jumped 45 percent.
As mobile banking services continue to expand exponentially, statutes, regulations and governing case law is struggling to keep up. You can expect the financial services industry and regulators to continue to develop new guidance and policies that protect both consumers and financial institutions. It is important to stay on top of these changes so that you understand the risks and your rights.
Currently, there are federal and state laws and regulations to help protect consumers.
Consumer Mobile Security Breach:
- The good news for consumers is that, under “Regulation E” of the Electronic Funds Transfer Act (EFTA), consumers are protected from financial losses due to fraud, so long as they promptly report the unauthorized activity. If you believe that there has been a breach of your mobile security, or your account has been hacked, immediately notify your financial institution by telephone and by email.
- If you notify the institution of an unauthorized withdrawal within two business days, your loss is limited to a maximum of $50. If the institution is notified between 3 and 59 days, your loss could be up to $500. And if the loss is not reported within 60 days, then you risk unlimited loss on any transfers made after the 60 day period — including any over draft fees.
Business Account Hack Help:
- According to the FBI, tens of millions of dollars have been stolen from small to mid-sized businesses, nonprofits, and towns and municipalities. These account holders are not protected by Regulation E of the EFTA.
- If you are considering computer access, or mobile device access, you need to be even more vigilant.
If you have questions on error resolution, fraud, privacy, data security or the responsibilities of banks and mobile service providers, contact Charles Ashdown.