Smartphones Pose Growing Security Risks  

While smartphones and other mobile devices are increasingly used like personal computers and require the same security now standard in PCs-such as antivirus software and encryption-most mobile devices have the same lack of security as a 1998 PC.

But because mobile technology has revolutionized the way we live, work and communicate, it's easy to focus on the convenience and versatility of mobile devices, without giving much thought to security.

Users can be careless, adding to the problem. In fact, about half of users keep passwords, pin codes or credit card details on their mobile devices, and one-third keep sensitive work-related information, according to a 2011 report by McAfee and Carnegie Mellon CyLab, which surveyed 1,500 respondents in 14 countries.

As a result of these security weaknesses, data that is stored and transmitted on mobile devices is at risk. As the value of data rises and mobile devices begin outselling PCs-as Morgan Stanley predicts will happen in 2012-the need for risk-management and security measures becomes even more acute.

One way to think about the risk is to compare how people treat wallets as opposed to mobile devices; it would not be acceptable to lose a wallet as commonly as mobile devices are lost.

Rapid change, lagging security   

Since mobile security is already lagging by a decade or more compared to PCs, it now has to do double duty: catching up with technology already in use, while simultaneously anticipating and outpacing popular new technologies. For example, "mobile wallets"-smartphones with near field communication (NFC) chips that enable fast, easy point-of-service sales-are poised for explosive growth.

With the landscape changing so quickly, it's important that risk and insurance professionals mitigate mobile security risks through a comprehensive strategy that includes preventative actions, ongoing vigilance and privacy-data breach insurance.

Major tasks for risk professionals include:

▪ Creating companywide policies

▪ Securing devices

▪ Controlling apps and other non-business-related

   add-ons

▪ Preparing for mobile wallets

▪ Securing data collected and transmitted for sales

   purposes

▪ Having the right insurance in place.