Mobile Apps Not Guaranteed Safe

The advent of the latest smart phone operating systems and the accompanying droves of downloadable apps have changed the way millions of people express themselves socially, entertain themselves and do business online. But with the new opportunity comes potentially unforeseen risk, as evidence of malware sprinkles the landscape of mobile technology.

The advent of the latest smart phone operating systems and the accompanying droves of downloadable apps have changed the way millions of people express themselves socially, entertain themselves and do business online. But with the new opportunity comes potentially unforeseen risk, as evidence of malware sprinkles the landscape of mobile technology.

The Wall Street Journal reports on the growing concern in the mobile app ecosystem:

In one incident, Google pulled dozens of unauthorized mobile-banking apps from its Android Market in December. The apps, priced at $1.50, were made by a developer named "09Droid" and claimed to offer access to accounts at many of the world's banks. Google said it pulled the apps because they violated its trademark policy

The apps were more useless than malicious, but could have been updated to capture customers' banking credentials, said John Hering, chief executive of Lookout, a mobile security provider. "It is becoming easier for the bad guys to use the app stores," Mr. Hering said.

The Journal article pointed out that Google's app marketplace does not vet incoming apps like Apple or Research In Motion, but rather inspects apps reactively.

As long as individual users continue customizing their mobile device with downloadable applications, there remains a threat that the developers behind the app might be less-than-trustworthy. With more banks and direct providers entering the smart phone app arena, it'll be interesting to see how they continue to differentiate themselves from third-party software makers and work to continue educating consumers on the responsible use of mobile banking applications.