Scott Kilmer, like many Americans, is concerned about the security of his financial information. So when his bank launched a smart phone app that would let him lock his account he signed up.
That was really the feature that stood out to me most, where I could say it's time for me to turn this off and just know that I have the peace of mind that no one can get to this account but me, said Kilmer.
This new technology allows customers to stop unauthorized charges. In Seattle, BECU has launched a pilot program of the app called Ondot. Customers can turn on or off transactions and use their location to determine the area where their card can be used. The banking industry says these apps can be beneficial to the customer and bank.
We're all familiar with the bank systems that identify suspicious activity, but this is one that actually stops the fraud before the transaction occurs, explained Nessa Feddis of the American Bankers Association.
Feddis said there are possible issues with these apps. You have to be digitally connected so if you lose your device, it could be hard to change your settings or get money. Also, you re dealing with technology so it s not foolproof.
Any system can be compromised it s a matter of staying one step ahead of the fraudsters and as they become - if this system becomes more popular fraudsters of course will then try to break down the barriers, said Feddis.
But developers said they are always working to develop multiple layers of security to protect your information. Bottom line, these apps give you more control but you still have to watch your account because hackers are always working on ways to outsmart the system and steal your cash.