How Safe Is Cell-Phone Banking?

AT&T (T Quote) provides a similar mobile banking program in partnership with a number of banks: 1st Bank, American First Credit Union, Arvest, BancorpSouth (BXS Quote), Carolina First and Mercantile Bank , SunTrust (STI Quote), Synovus (SNV Quote) and Wachovia (WB Quote).

AT&T's service supports a number of phones made by Research In Motion (RIMM Quote), LG, Motorola (MOT Quote), Nokia (NOK Quote), Pantech, Samsung and Sony Ericsson.

Mind the Fees

One major economic point you need to keep in mind: While the banks aren't charging for these new cell-phone services, your cell-phone provider does. Unlike accessing your accounts on a laptop, every time you use a wireless data service, you pay. If you have a monthly data service, then you'll just be using some of what you pay for already. If you don't have a data plan, you will pay for each up/down data you use. Like any other cellular service, things can get expensive quickly.

Theft Fret

The other factor to consider is security. At the outset, your bank accounts may only be safe as long as the cell phone is in your possession. Lose it, and you might be in trouble. And what about the electronic data thieves who might be able to steal the information you are sending and receiving? The banks worry, too.

Companies like VeriSign (VRSN Quote), Symantec (SYMC Quote), Credant and others are constantly working to make sure that the cellular banking information you send and receive is safe.

In recent surveys, young adults (those 18 to 24 years old) believe cell-phone banking is a good idea. They're not worried about whether it is safe. They're also young enough not to remember what happened the last time mobile banking made a big push. Nearly 20 years ago, hackers and viruses took a large toll on a burgeoning industry. Technology has improved, but you should still be aware of the possibility of a problem.