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2012 Mobile Security: Android and IPhone are Attractive Fraud Targets in $20B Mobile Payments Market Product Image

2012 Mobile Security: Android and IPhone are Attractive Fraud Targets in $20B Mobile Payments Market

  • ID: 2363997
  • December 2012
  • 42 Pages
  • Javelin Strategy & Research

Smartphone security is an increasing concern as mobile malware multiplies exponentially, and Android’s open source platform continues to gain market share over iOS. While most malware has so far targeted Android, which has the largest installed base of users, iOS remains a valuable, if elusive, mark for hackers—iOS users spend more individually and have greater deposits on average than Android users. All smartphone owners demonstrate cautious attitudes and willingness to protect their mobile devices from threats. However their risky behaviors demonstrate a disconnect between intention and know-how. Financial institutions, card issuers, mobile wallet providers, and merchants have a number of options for providing a secure user experience.

Primary Questions

- What is the size of the market for different Smartphone platforms?

- What is the volume of mobile payments made through the browser and app for each OS?

- What are the primary threats facing smartphone purchasers?

- What are the major vulnerabilities of each operating system?

- What can financial institutions, card issuers, mobile wallet providers, merchants, and consumers do to protect personal and payment information on the mobile device?

OVERVIEW

METHODOLOGY
Market Sizing Methodology

EXECUTIVE SUMMARY
Current Threat Landscape
Key Recommendations

MOBILE AND CONSUMER SECURITY
OS and Channel Market Size
Android Makes Strides over iOS in the Marketplace
OS Users’ E-Commerce Payments Through the Browser and App
Mobile E-Commerce Threats Also Contaminate Mobile Banking
Deposit Size Makes iOS a Target
Consumer Behaviors and Mobile Payments Security
Traditional Payment Methods Are Also Vulnerable through the Mobile Channel
IPhone Users Enjoy Variety, and Should Protect Themselves Accordingly
Windows Users Show a Gap
Between Intent and Behavior when It Comes to Caution

MOBILE DEVICE ECOSYSTEM AND SECURITY
Mobile Threats
Mobile Threats: Malware
Mobile Threats: Phishing, Smishing, and Website Spoofing
Mobile Threats: Lost/Stolen Device

MOBILE BROWSER VS. NATIVE APP VULNERABILITIES
Mobile Browser Vulnerabilities
Browser Display
Security
Man-in-the-Mobile Attacks
HTML5
Mobile “Native” Applications
Certification and SSL encryption
Hybrid Mobile Apps

VULNERABILITIES BY SMARTPHONE OPERATING SYSTEM PLATFORM
Android
Vulnerabilities
Application Distribution under Attack
IOS
IOS and the Impending Malware
Threat
Windows
Windows Has Its Hiccups but Acts Quickly to Correct Them
Windows App Development and Distribution
Windows Phone Vulnerabilities
Windows Phone 8 Security Features
Blackberry
Vulnerabilities

APPENDIX

RELATED RESEARCH

COMPANIES MENTIONED

Table of Figures

Figure 1: Smartphone Purchasers Included, Not Included in Market Sizing
Figure 2: Market Sizing Components for Volume of Smartphone Browser and App Payments
Figure 3: Consumer Perception of Security Responsibility, 2008–2012
Figure 4: Total Number of U.S. Smartphone Owners by OS
Figure 5: Smartphone Market Shares by OS
Figure 6: Total Dollar Volume of Payments through Browser and App among Consumers Making Payments through Only One Smartphone OS
Figure 7: Typical Purchase Amount and Frequency through Browser and App among Consumers Making Payments through Only One Smartphone OS
Figure 8: Mobile Consumers’ and Mobile Purchasers’ Mobile Banking Behavior
Figure 9: Total Deposits at Primary Bank by OS
Figure 10: Top Reasons For Not Using Contactless Payments Among Those Unlikely to Make Them
Figure 11: Smartphone Owners’ Willingness to Use Mobile Security Products
Figure 12: Number of Payments Products by Smartphone OS and All Mobile Consumers
Figure 13: OS Users Making Mobile Payments, OS Users Using Both Browser and App
Figure 14: Perceived Riskiness of Accessing the Internet through a Mobile Device by OS
Figure 15: Approach to Challenges in Everyday Life by OS Users and All Mobile Consumers
Figure 16: Clicked on Embedded Link and Used “Click to Call” Function by Operating System
Figure 17: Reasons for Not Conducting Mobile Banking
Figure 18: Top Security Concerns among Those Citing Security as one of the Top 3 Reasons for Not Using Mobile Banking

- Apple
- Microsoft
- AT&T
- RIM
- Google
- Square
- LevelUp
- Trend Micro

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