With the announcement by Apple Inc., millions of Americans can now begin using a new mobile payment service that many say will usher in a new era of convenience and security of mobile payments on iPhone 6, 6 Plus and Apple Watch. There are measures you should take to protect yourself financially as payments from your cell phone become an increasing part of your lifestyle — especially as we move into the busy holiday shopping season, cautions the California Society of CPAs (www.CalCPA.org) is the nation’s largest professional, non-profit state association representing more than 40,000 CPAs in the area of tax, audit, accounting and consulting services such as personal finance.
California CPAs suggest the following strategies to protect yourself as we move into a growing mobile payments environment:
Step 1: Beware of Identity Theft. Any time you have to enter sensitive information in an online form, like your Social Security number, address and phone number, it’s natural to feel a twinge of hesitation. To protect your identity online, the FTC recommends that you remove all information from computers before disposing of them using a wipe utility program; extract SIM cards and delete all information permanently, especially pertaining to contact lists, calls made and received, voicemails, emails, and web histories; install encryption software on your devices; maintain unique, strong and varied passwords for different sites that request your personal information; don’t overshare on social media sites, as information could be used to get through verification questions; and, be wary of public Wi-Fi, as any account activity in that network might not be protected.
Step 2. Review Technical Errors Resulting in Missing Funds. A technical mistake is a factor consumers must contend with when banking digitally. According to the FTC, you 60 days from the date of a periodic statement containing an error to file a claim. Financial institutions have 10 days to investigate and three additional days to inform you of their findings. This window can be extended to 45 days so long as the financial institution temporarily reimburses the funds until the investigation is complete.
Step 3. Understand Certain Companies May Misuse Your Information. Many companies track your online behavior to better tailor their marketing efforts to relevant consumers, and many sell your personal information to other companies. Read the privacy policies of the sites you’re on. By knowing what agreeing to a site’s terms and conditions really means, you’ll feel more in control of your information and aware of what a company can do and cannot do with it.
Step 4. Beware of Lack of Documentation. Paper statements force people to take a
look at their spending habits and evaluate how well they’re performing financially. But in an increasingly digital world, consumers and financial institutions alike are transitioning to e-statements – some financial institutions actually require that account holders opt in to e-statements to receive the posted interest rate. One way to address this concern is to apply the same due diligence your bank put into mailing you regular paper statements to your personal finances. Set a calendar reminder to log into your account monthly to maintain the same awareness of your account activity.Step 5. Review Security Protocols of Your Mobile Phone Company. The Associated Press reported that lost or stolen cell phones can cost Americans $30 billion a year. Understandably, you might be worried about storing sensitive login information in your phone should it land in the wrong hands; however, there are steps you can take to protect yourself before your phone goes missing – and even after the fact. Review security features of cell phone providers. There are different security options available depending on your smartphone.
Step 6. Beware of Fraudulent Apps Loaded onto Your Cell Phone. Of the top 100 paid Android and iPhone apps in 2013, 78% were hacked, according to an Arxan report. As for free apps, 73%t of Android apps were hacked last
year, while 53%t of iOS apps were compromised. To protect yourself from this risk, follow these precautions: keep an eye out for multiple apps from any one bank and report possible frauds; ensure you’re using an authentic app by visiting the bank’s official website; make sure you’re downloading apps from a credible app store.
Step 7. Taking a Chance on Unknown Retailers. If you don’t buy from a well-known company, or one with which you’ve already done business, take some precautions to ensure you can be confident of a reliable transaction. Be sure the company lists an address and phone number. Try calling the customer service number to get answers to any questions that may concern you, such as how the company handles returns, refunds and consumer complaints. You can also contact the Better Business Bureau or your state or local consumer affairs department to see if other purchasers have filed complaints.
Step 8. Not Using a Credit Card. Charging the transaction allows you to dispute the purchase if it doesn’t arrive or doesn’t live up to expectations. At the same time, because identity theft–including the unauthorized use of credit card numbers–is growing, be sure to review your credit card statements regularly and contact the credit card issuer if you find anything that shouldn’t be on your bill.
The online retailer should provide you with a receipt for your purchase when it’s completed, with an order or confirmation number. Print the receipt and hold on to it until you receive the product or service so that you have proof of the purchase if you need it.
Step 9. Purchases May Be More Expensive. Be mindful of the credit card purchases added to your credit card balance that will be subject to potentially high interest charges if not paid off on time. By not paying off these charges — your purchased items become more expensive. For example, for convenience, you may be tempted to make payments you normally would pay cash for — latte or lunch at the deli — using your cell phone – which will cost you more money if you carry as a balance on a credit card.
Step 10. Beware of Shopping Using a Public Wifi Connection. The connection you are using may not be secure, meaning that hackers may be able to gain access to the personal information you share with the retailer and use it to make unauthorized purchases.
Check out the California Society of CPAs’ free, non-commercial, public service Web site at www.calcpa.org and review the “Dollar & Sense Program.â€