I haven't read anything on the security model but from a high level it seems like its going to be a cluster f/k of fraud to me, loose your phone and you're loosing direct access to your finances.
I've had a few conversations here and there but everyones opinions seem to be the same as mine... anyone with anything to placate my fears? because this seems like something I'm going to avoid by a huge distance.
If the wallet is something you have to manually summon and isn't running in the background all the time, it'll be safer than the contactless RFID credit cards out there now.
If you're in the US, if your card does get stolen you'll only be responsible for the first $50[1], just like if you were paying with plastic or online.
1: Legally; some cards protect you from the first $50 too, but none will make you responsible for more than $50.
I got back and within a few weeks I started getting transactions booked to personal card. I delibratly didn't use that card this time (as this happens all the time when I head to Asia) and hence why I got the pre pay cards. But either Bangkok Airways, Air Asia, or JetStar have had there systems compromised, as sure enough like clock work the fraudulent charges started.
Luckily you mention asia and credit card fraud and you don't even have to supply evidence, Master Card just roll the transactions back immediatly and cancel the card. I guess its cheaper for them to do that waste time getting evidence for each incident.
One thing about that interface is how large the display is, it would be damned simple to catch someones PIN from a distance. I mean even current systems I see my friends PINs without trying ... on small covered terminals, not a 7" screen.
A nice shiny phone would slip out of someones pocket a lot easier than wallet as well, I would hazard a guess its going to be a boon for pickpockets at events. By the time you could cancel the account they could of stripped hundreds of dollars.
But thanks I will do some deeper reading around that link.
Anyway I have my sig upside down on my card to create a point in time when I can proove fraud has begun (because travelling is a b/tch and after every trip I end up replacing my card and filling out forms to reclaim fraud).
I often get pulled up and have to show a secondary ID, my passport or something to prove my upside signature is infact upside down.
"Visa will also push dynamic authentication to overcome any security worries and encourage adoption. With dynamic authentication it would be hard for a criminal to use a card at a point-of-sale system even if payment data is compromised. Visa will support personal identification numbers (PINs) and signatures--so called static authentication--but expects both to give way to dynamic authentication."
This is the future. In some shockingly few decades from now it will be uncommon to carry a wallet or keys. Everything will be digital, everything will be mediated by your phone (or something similar), identity, payment, security, etc.
This type of fraud is so high in Britain that my cards issued there have an extra chip in the cards to slow down theives.
Although I was living in Britain when they first released 'chip and PIN' and the crims had working scanners 2-3 days after launch.
The level of determination and skill the bad guys have is amazing, and I currently see this cell phone move as a step in there favour and not mine.
The other aspect is people leave cell phones laying around, they don't tend to leave there wallets. I guess having it fully tied to your bank account will add a level of apranoia which may stop this behaviour. But for example at my last work place it was the joke to wait till someone had left there iPhone at lunch, slip it into your pocket, and after getting back to teh office convince the person they had to go back and get it. Not funny when its you, but funny enough after you watch a work mate walk several blocks and back fuming because he knows one of us has it.
Loosing your keys is not the same as for it to be effective the criminal needs to know where to use the keys, in a sense it has to be premeditated, a completely different criminal scenario.
And yeah I know a few people who have already changed their house doors to keypads and electric terminals. Guess I have a few niche geek friends, but that future is alreayd ehre for some.
I travell alot and I've had my gear stolen a few times, and atleast once a year (usually a month after I get back) I have to go through claims processes to remove charges which start appearing. Total pain, and why I'm suspicious of another system that looks atleast as bad as whats already out there.