How Secure Are Cell Phones?

We’ve touched on fraud a number of times and the importance of keeping your personal information secure at home and on your PC or Mac.  But, what about your cell phone, iPhone, Android or Blackberry?  There hasn’t been much fraud yet, but as more smart phones are being developed and purchased, the risk increases. You should be aware of the risk at Wi-Fi cafes, smart phone security, and the Zitmo virus.

Zitmo

Cybercrime (internet and computer criminal activity) is increasing with attacks to phones that use Android operating systems.  Perhaps the highest profile is the Trojan Horse “Zeus” virus called Zitmo. Its purpose is to steal financial information and can crack into any hand set. Zitmo can enter when you click on a link or attachment containing the virus and within seconds it secretly gets control of the phone.  Nice, huh?

A new way that Zeus/Zitmo is infecting smart phones is through the home PC.  The virus sleeps until you log into a bank website, and wakes up and asks you to download a new security device onto your mobile phone to complete the bank log-in process. You think the message is from the bank and you download it.  The security device is actually the Zeus Trojan virus that infects and takes over both the phone and PC.

Some banks send MTans (mobile transaction authentication numbers) via SMS (short text) messages.  MTans are passwords used for one-time only authentication.  This can be intercepted by the Zeus gang, which are criminals behind Zitmo and used for fraudulent money transfers and other illegal activities.

Wi-Fi Cafes

Another risk is the use of Wi-Fi at an Internet café.  Fraudsters create bogus gateways to which mobile phones will automatically connect, and information can be read directly or encrypted by the fraudsters.  Information such as your login credentials (user names and passwords) and messages are especially at risk.

Security

One of the issues is the companies that develop cell phones have not built impenetrable security.  And it’s certainly not the fault of a bank or Internet service provider if your phone gets jacked by a virus.  Further, you have more security threats if you jailbreak your phone, which is to remove the limitations of your phone as set by the developer.

There haven’t been problems with Zitmo and fraudsters with iPhones, smartphones and Blackberries, but it’s really just a matter of time.  Secure your phone as you would your PC or Mac. Don’t use your phone at public Wi-Fi locations for financial or personal transactions, only trust links from those you know, only install aps from reputable sources, and make your pin difficult to guess.  And for goodness sake, CHANGE THE PIN FREQUENTLY.

John Ulzheimer is the President of Consumer Education at SmartCredit.com, the credit blogger for Mint.com, and a Contributor for the National Foundation for Credit Counseling.  He is an expert on credit reporting, credit scoring and identity theft. Formerly of FICO, Equifax and Credit.com, John is the only recognized credit expert who actually comes from the credit industry.  Follow him on Twitter here.

Categorised in: Identity Theft, Money & Identity

This post was written by John Ulzheimer