Originally Posted by Aleron Ives
I'm sorry, but I'm not trusting my financial security to a device that automatically connects to unsecured wireless networks as I walk around.
A couple of points:
1 - Your device should not be automatically connecting to unsecure networks unless you have specifically allowed your device to previously connect to those networks. It won't automatically connect to any new network without you first saying it's OK.
2 - Secured or unsecured networks don't matter with a payment system like Google Pay. It's an encrypted transaction just like buying something on Amazon.com. You could yell to everyone in the store that you're making a purchase and even allow someone to connect to your device via NFC or as a wifi hotspot on it's own and they still wouldn't be able decrypt the information.
3 - The transaction with your payment choice doesn't happen at the store with Google's system. It happens on their servers, and a phantom Mastercard number is used to make the payment to the store. Your payment information is not contained in the phone and is never seen by the store. Further, it is never transmitted in any way. Google simply debits your card of choice at their end. Apple works similarly, but with minor differences that provide security in other ways.
As far as fraudulent charges, someone using a stolen card through Apple Pay is something that can happen with any card or web transaction. It's also between the banks and Apple and has nothing to do with the security of your transactions.
Originally Posted by Nayan
People laugh when I pay for stuff in cash, but my reply is 'cash doesn't get hacked'. I love technology, but some of it I refuse to use.
Yes, but cash is the property of whomever possesses it. If it's stolen from you, it's on you. It's gone and you are unlikely to be able to get it back. With a card, you're protected.
In the world of theft, some of the worst things (in order) to have stolen are:
- Your Social Security Number, which is really, really almost impossible to have re-issued and can affect your credit history forever.
- Cash, which can't be replaced when stolen.
- Bank Account Number, which is a lot harder to deal with than a credit card, but harder and more time consuming to use fraudulently. Having said that, if a payment service using that account gets hacked, it can become far easier to make debits to it. That's why I would never use CurrentC.
- Debit Card, which is usually protected like a credit card, but your out any fraudulent purchases until they get waived.
- Credit Card, which is usually liability free when stolen, though you do have to report it first.
Having your phone stolen can be bad, depending upon how much personal information you keep on it and how secure you method of locking it is. On it's own, using it with a payment service isn't a security risk since even in the app your credit card number on file is blocked out from view. However, other personal information you might have on it can certainly allow someone to assume your identity. That's why it's so important to lock it when not in use and make sure you keep track of it.
I saw an ad the other day that claimed the average person will lose 4 cell phones in their lifetime. Well, I've had several cell phones over the years since the mid 80's and they're all in a box in my closet. Not one lost one (I'm on number 7). What it sounds like is people need to treat their phones like a wallet, which it sometimes is just as valuable. Of course, with the way some people are always texting and tweeting, it makes me wonder when they could possibly lose the phone. Don't they notice not having it for 5 minutes?