Safeguarding Your Financial Information and Identity
New mobile apps make paying for goods and services or simply transferring funds from one person to another as easy as tapping two cell phones together. One PayPal app, for example, allows iPhone and iPod Touch users to transfer funds at no cost either by tapping phones together or by entering the other person's email address.
While that sounds risky, PayPal says its app has built-in safeguards to protect users if a phone is stolen. Users must enter a PIN each time they start up the software. And the company guarantees against unauthorized payments if a PIN is compromised.
The bottom line? While you should be concerned about protecting your identity and your financial information, the key is to understand precisely how new products or services work, what safeguards you should take and what steps to take if your privacy is compromised. Always make sure convenience is balanced by effective security measures, and if you're in doubt, wait until any technology is proven to be reliable.