Mobile Apps and Your Credit Card: Know the Risks?
Thursday, 11 July 2013
We love our smartphones. Whether we’re tweeting, liking, watching or gaming, they’re never too far away. And there’s nothing we enjoy more than getting the latest apps to enhance the experience our phones give us, but are we aware of the risks of doing so?
Mobile apps are a multi-billion dollar industry, with over half of us regularly buying the latest and greatest applications without so much as a second thought to the potential risks. What risks you ask? The risk of having your linked credit card caught up in a mobile payments scam, a risk that is more common than you may think.
In-app payments are big business, with some $3.9 billion dollars in transactions each year and growing. This has inevitably led to rampant fraud centered around mobile payments, a fraud which some argue is growing at a greater rate than the mobile app business as a whole.
The common technique used by app fraudsters is one-click payments. These are type of payment which allow developers to embed links within their apps, which are concealed from the user but triggered on their action, such as tapping something within the app. Payment is then taken from your linked credit card instantly, without your knowledge, which in some cases can lead to thousands being stolen.
There is often little users can do about this type of fraud once it’s happened, as Google and Apple are somewhat reluctant to assist their customers in getting a refund. This makes it important to take additional measures to protect yourself, the easiest of which is to use a prepaid card.
Prepaid cards offer a good prepaid credit card alternative that can help reduce these risks, by limiting the scale of any possible fraud. They are able to do this as unlike traditional credit cards, they can have as little or as high a limit as you choose, giving you credit control. To find out more about prepaid cards, how they work and how to get one, visit our prepaid FAQ section.