Public Wi-Fi Increasingly Easy, Still Too Dangerous
NEW YORK (TheStreet) -- If you can't find a wireless hotspot in an urban area these days, you're not trying very hard. According to the Wireless Broadband Alliance, their numbers will grow from 1.3 million in 2011 to 5.8 million globally through this year.
For banking consumers who use mobile apps to conduct financial transactions, the growth of Wi-Fi hotspots is actually chilling, whether they know it or not.
Unlike home-based wireless services, which usually encrypt the data sent from mobile phones, tablets and computers, public Wi-Fi hotspots typically leave users susceptible to having their email, bank account and credit card data taken by identity thieves.
According to Javelin Strategy, 13.1 million Americans were victimized by identity fraud last year -- a rise of 500,000 from 2012. More worrisome, account takeover fraud, which significantly affects bank consumers, accounted for 28% of all identity theft.According to the data security firm SecureLabs, cyber thieves can buy a $100 "malicious Wi-Fi router" that gives access to any data sent through a public hotspot to intercept passwords and manipulate payment transactions. Technology industry standards groups are asking banks and technology companies to adhere to tougher security standards, and SecureLabs, in a study in its native Netherlands, concluded that "as long as all online banking websites and browser vendors are not embracing the new security standard, the SSL Web security can be easily bypassed with a cheap and easily assessable Wi-Fi hotspot."
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