Analysis of Security and Privacy Issues in Mobile Payment Techniques

This report provides an analysis of mobile payment techniques, focusing on the security and privacy challenges associated with their use. It begins with an introduction highlighting the transformative impact of mobile devices on financial transactions. The report delves into the security and privacy issues, exploring the causes of these issues, such as the history of fraud targeting payment systems. It discusses various risks, including traditional risks like theft and emerging risks like money laundering. Recommendations are provided, emphasizing the importance of stakeholder involvement, security governance, and clear regulations. The report suggests implementing safeguards, such as two-factor authentication and dynamic card verification values, to protect transactions. Data classification and integrity are also highlighted as crucial factors. The report concludes by referencing relevant studies and emphasizing the need for ongoing vigilance in the evolving landscape of mobile payments.

RUNNING HEAD: MOBILE PAYMENT TECHNIQUES 1
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Student Name
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Contents
Introduction................................................................................................................................3
Analyses of the issues................................................................................................................3
Security and privacy issues for the mobile payment..................................................................3
Cause of issues...........................................................................................................................4
Recommendations......................................................................................................................4
Reference....................................................................................................................................6

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Introduction
In the current time, mobile devices have completely transformed the business and day to day
life in the field of interaction. In addition to it has also changed the way financial transaction
of all kind are made (Suo et al, 2013). The concept of mobile devices specifically mobile
phones is in usage widely and customers are becoming increasingly popular with maximum
usage of mobile phones for many motives like secure financial transactions of all kinds that
are made. Mobile devices specifically mobile phone is in huge usage as well and customers
are becoming more and more familiar with usage of mobile phones for many motives like
safe or secure financial transactions through web banking websites.
Analyses of the issues
Security and privacy issues for the mobile payment

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Cause of issues
While looking at the history, there are many fraudsters that have targeting many kinds of
payment vehicles and this is likely to be the main case for mobile payments. Thus, the
concept which is upfront and based on counter measures are required to mitigate the overall
risk of the double-edged techniques. There are number of risks from mobile payment
approach that can be divided since it is emerging or traditional by approach (Thakur &
Srivastava, 2014). There is a lot of traditional risk based on denial as well as theft of loss
associated with revenue, reputation of brand and consumer base whereas there is emerging
risk also based on the usage of mobile payments like money laundering and terrorist
associated funding. Therefore, the most widely spread present execution is the bank based
NFC model and the emerging risk current is completely out of scope of the current paper.
The concept of money laundering as well as terrorist risks mitigating approaches with a
source of information from different studies (Slade et al, 2015). Risk associated with the
participants in the current mobile payment ecosystem completely depend on the current role
of the user based entity, network as well as communication provider or payment service
providers. There are some entities like MNOs that can play two of the discussed role side by
side (Yang et al, 2015).
Recommendations
1. It is very important to carefully play and include all the stakeholders along with
procedure and techniques consisting, the option that exists to make security as an
intrinsic component of all kind of mobile payment systems. The financial, payment as
well as network based service provider should execute the right kind of safeguards as
well as privacy and security governance programs. It also lacks clear set of
regulations that should not be utilised by the company as an excuse for not being
active (Arvidsson, 2014). There is risk from misusing or by authorizing the user like

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money laundering and threat of illegal usage. The latter area can need support from
various new set of laws that will evolve to make sure right kind of protection. Every
organization consist of a chain of work based data that must be put in place for a
strong and positive control to save such while it is in the custody.
2. One main concern is making sure that the transaction must be undertaken is most
likely being carried by the person who is authorized to carry it out. Usage of the two-
factor authentication will further help in contributing to have a more effective kind of
identity to save for the consumers and high identity based assurance for the merchant
(Dinh et al, 2013). It is also a case of bank based NFC work and saving or protecting
from the transactions that originate from many unauthorised users can be achieved by
using dynamic card verification values and CVVs.
3. Another crucial factor that can be considered in the current data classification during
the transmission as well as storing of the data at many nodes. Companies must also
recognize the data which is also considered sensitive and should make sure that right
methods are in place. In addition, in case of financial data, it is valuable time to
consider the matter of data integrity also (Morosan & DeFranco, 2016).

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Reference
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Dinh, H. T., Lee, C., Niyato, D., & Wang, P. (2013). A survey of mobile cloud computing:
architecture, applications, and approaches. Wireless communications and mobile
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Morosan, C., & DeFranco, A. (2016). It's about time: Revisiting UTAUT2 to examine
consumers’ intentions to use NFC mobile payments in hotels. International Journal
of Hospitality Management, 53, 17-29.
Slade, E. L., Dwivedi, Y. K., Piercy, N. C., & Williams, M. D. (2015). Modeling consumers’
adoption intentions of remote mobile payments in the United Kingdom: extending
UTAUT with innovativeness, risk, and trust. Psychology & Marketing, 32(8), 860-
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Suo, H., Liu, Z., Wan, J., & Zhou, K. (2013, July). Security and privacy in mobile cloud
computing. In Wireless Communications and Mobile Computing Conference
(IWCMC), 2013 9th International (pp. 655-659). IEEE.
Thakur, R., & Srivastava, M. (2014). Adoption readiness, personal innovativeness, perceived
risk and usage intention across customer groups for mobile payment services in
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Yang, Y., Liu, Y., Li, H., & Yu, B. (2015). Understanding perceived risks in mobile payment
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