Business Issues -> Security & Risk
Released: 19th November 2013
Leading corporate risk prevention consultancy and analyst UKFraud (www.ukfraud.co.uk) has released an interim update on their on-going research and market analysis of mobile payments and related mobile initiatives. The findings follow an earlier warning to stakeholders about a ‘cocktail of emerging risks’ as a consequence of rapid growth in the global mobile payments market. Key findings of the interim report are as follows:
Kevin Smith, Chair of UKFraud’s Mobile Payments & Wallet SIG reports on the state of evolution taking place in the marketplace and key findings. In his view, “There needs to be room for innovation and competition in payment systems, to ensure that the evolution of these new technologies and business-models is combined in ‘life-managing’ value-add solutions. To be truly effective, this requires sector wide collaboration.
“The technologies, applications and solutions consist of many more components than suppliers can handle; and the solutions that are being evolved often miss the security and risk infrastructures required. Particular areas of weakness include: AML checks on identities and refer-listings, controls over and monitoring of hardware validation and the business being undertaken. Security of the software and the data transmitted is another area that requires greater focus. As the market is growing so rapidly the SIG is concerned that controls and proper infrastructure is often inadequate.”
The SIG sees the on-going challenge as putting in place the basics of proper checking, standards procedures, processes and highlighting the infrastructures needed. It also sees a requirement for setting base security thinking in place; to prevent the inevitable ‘crash’or a series of likely expensive regressions. This will prevent:
Commenting on the findings Bill Trueman CEO of UKFraud commented; “Every boardroom is confused about where this market is going and how to act and direct its efforts. This is because it is so clear that this will be the global future for consumers and suppliers. The big challenge is how to be successful as the landscape changes globally.
“Companies of all sizes face concerns. Many major corporates with strong security and infrastructure are worried that they can’t adapt to the future just as the thousands of smaller entities are trying to ‘create a solution or market’ with only a small piece of the jig-saw and none of the infrastructure or security or standards based upon interoperability required.
“There is no crystal ball for anyone to rely upon and there is still a tremendous amount of bravado with people developing new and ‘sexy’ solutions that will probably not work. Typically there are the 90% that will fail and the 10% that might be successful. The simple truth, from the SIG’s findings, is therefore that those that collaborate will be better positioned for success.”
Published by: IT Analysis Communications Ltd.
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