Article

  Comment(0)

 

Hannes van Rensburg's Blog  >>

Share:    Email  

The risk-profile for mobile operators


Hannes van Rensburg,
Date Posted: Sunday, July 10, 2011

Online banking in South Africa is much more secure because of the use of SMS to deliver one time passwords (OTP) to banking customers. Unfortunately, even this practice can be manipulated by criminals to intercept passwords. This was recently highlighted when it was reported that a Vodacom employee colluded with criminals to intercept the OTP's sent to customers. In the process fraud of R2.4 million (about $340 000) was committed. (Read here). The immediate question is if Vodacom is liable in any way for this damage and the answer is quite clearly: no.

The commercials and infrastructure that supports existing telecommunication services (the delivery of voice and data products), were never designed to cater for the additional liability of financial services. Many examples exist where banks have been held liable for fraud perpetrated on their networks (Read for instance here). Banks have to implement systems to cater for this, they have to price their products accordingly and take out insurance to achieve this. The question is if Mobile Operators understand these implications and if they are able (and willing) to act accordingly.

In the meantime, consumers have to be made aware that the protection that they may expect from utilising telecommunication infrastructure to secure their banking , are not as rigorous as they may think. This is demonstrated by a resent post on the Internet Security Awareness Portal (Read here).


...

Read the full story by clicking the link below
http://mbanking.blogspot.com/2011/06/does-risk-profile-change-for-mobile.html


Name: Hannes van Rensburg
Title: CEO
Company: Fundamo
View Hannes van Rensburg's Blog

Sponsored Links
 

 

  Article

   Comments(0)

 
Login or register to post comments
[Show comment]

Hannes'S Recent Blogs

Complex eco-systems only works in equilibrium. An argument for us
Mobile Money being used in retail applications.
Empowering women with Mobile Money. Enough research to support fu
Secure element on the phone. The implications of architecture and
NFC taking off will only happen with focused education
NFC taking off will only happen with focused education
The balance of non-competitive behavior in mobile payments
Are we seeing the start of a mobile payment bubble.
Summer was a bit late for Isis
What did the Olympics do to mobile payments

Stay Connected

 
Sign Up for the Latest in:
 
 
Mobile Money Transfer
Mobile Commerce
Micro Finance
Mobile Technology
EMEA
APAC
Mobile Payments
Mobile Banking
Mobile Marketing
Global
Americas
Company
(*)
 

MOST POPULAR

HEADLINES

1.With Apple Pay, tech giant bets big on mobile payments
2.Apple Pay won’t replace your wallet any time soon
3.Mobile Payments To Benefit From Tech Investments
4.As Apple Pay Arrives, Witnessing the Next Step in Money. Maybe.
5.Bharti Airtel to launch cross-border money transfer service
6.Obama signs “BuySecure” initiative to speed EMV adoption in t
7.Three in Five Americans Fear Mobile Banking
8.Microsoft Plans To Launch A Wearable Device Within Weeks
9.Cape Town launches mobile transport app
10. Canadian retailers may experience some turbulence due to mobile

FEATURED COMPANIES

MOST POPULAR

BLOGS


 
 

Mobile Financial News from around the web

 
 
 

Inside the DonRiver Network