Top 3 security concerns of mobile payments for SMBs
August 28, 2019
Consumers and small business owners have similar concerns with the security of mobile banking. The difference, however, is that a business’ bank data relies more on security because of their delicate connections and reputations to uphold.
It’s no secret that small businesses are common targets for fraud. Without familiarity with apps and payment networks (and with repeated reports of data leaks and digital fear-mongering), business owners are likely to resist moving money with their phones.
What’s at stake?
Despite the convenience and promise that mobile banking provides, SMB owners have identified certain security concerns that prevent them from using mobile banking.
- Identity theft & fraud
- Bank account hacks
- Compromised networks
Before committing to mobile banking and digital payment platforms, businesses have to consider their sensitive banking data, business connections, reputation, and of course, money.
Because of the risks involved with mobile payments and online payments gateways, large financial institutions won’t commit to mobile services. According to a study by Raddon, the biggest beef business owners’ have with mobile banking is security, “which was mentioned by 46% of the non-users.” 78% of those with security concerns mention the risk of identity theft, and 70% admit concerns about their company’s bank account being hacked into.
So, how can a mobile banking app promise security with so many different users, connections, and networks of other businesses? Aren’t I putting myself and others at risk by conducting my business banking via a mobile app?
Why small businesses trust mobile payments
Well, despite the many concerns and scares about unsecure networks, hackers, and identity theft, fintech businesses are at the height of technological software development.
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Millennials are more open to mobile banking because they were raised online. They recognize the convenience of online banking, especially when dealing with a network of people and payments. For many millennials, in-person banking is the last resort.
Fintech is making big strides to narrow the gap in financial security. It’s a constantly changing industry, using and creating the most up-to-date technology. While businesses fear ruining their reputation and compromising vulnerable connections, mobile payment companies and banks have the same concerns (but on steroids).
For this reason, there are a variety of security features which come out of these constant developments.
Fingerprint ID seemed like some 007 tech when it first came out. Too much TV? Now it’s standard on the most popular phones.
Real-time alerts, nine times out of ten, just report on your own activity. When logging in on an unfamiliar device or accessing an account in an unusual location, you’ve likely received an email or text asking if you’re you (if it is, ignore this message. Familiar?)
These automated tattletale messages will catch any irregular activity and you’d thank them if you could.
Multi-factor authentication ensures that whoever is logging into an account is who they say they are. You may have to confirm the actions done on one device using another device. Or, you may have to supply some information that only you should know or answer a series of security questions.
Analytics and transparency
Online processors can offer real-time analytics and transparency into their payments. Although all fintech apps are not made the same, most do their best to keep you in-the-know. You can see exactly where your payments are with Veem’s money tracker tool.
Veem allows businesses around the world to send, receive, and request payments. Cover all your bases.
Raddon’s study also shows that more than half of those with security concerns claim fingerprint, voice authorization, or eye verification would encourage them to use mobile banking apps. There are a ton of solutions that fintech companies are invested in. While there may always be hackers and issues, there will also be experts dedicated to helping small businesses do business.
How else can small businesses avoid security flaws?
Use strong passwords
It’s pretty difficult to even avoid this tip. Most payment platforms and bank apps require a combination of numbers, symbols, lower-case, and upper-case letters. Oftentimes, these processors won’t even let you include parts of your name or email address.
Ever lose your mind trying to set up a password? The frustration is definitely worth it and warranted. Chances are, the typical “password” or “abc123” won’t be allowed. Additionally, you may consider changing your password regularly just in case. It’s all for your own good.
Burn after reading
You don’t need a burner phone (or maybe you do???). But you do need to avoid public or open networks when accessing sensitive data.
It’s also a good idea to set up Find my iPhone or a similar phone finding app that will shred any sensitive details, images, passwords, history and put your device on lockdown if reported stolen or lost. As necessary as this is, Apple unfortunately can’t do much if you lose your phone in another country with the phone locator turned off.
Although it seems a bit inconvenient, you may consider not saving any passwords or card numbers on your device and log out of your banking app when not in use.
Don’t take the bait
Yes, if the processor seems too easy to access and share then it probably is. Phishing is just how it sounds. Hackers use lures and hope you take the bait in order to access your banking info.
Some fraudsters will even claim to be the IRS and requesting online payments. Although these attempts are cringefully tacky, it still works.
Know your customers and employees
Knowing your customers will help avoid fraud, and knowing your employees will ensure accountability within your team.
Mobile banking and payment apps are only as strong as their networks. Join ours today and forget the worries.
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