Zelle, which is a service that allows bank customers to end
money instantly is booming. Last year alone, Zelle have more customers transferring
money through them than Venmo, a rival money transfer app. However, lately hackers
have used the system from Venmo and Zelle to steal from the users with more
than two dozen customers had their money stolen through Zelle. I am curious to see how Zelle
and Venmo would do to protect their users.
https://www.nytimes.com/2018/04/22/business/zelle-banks-fraud.html?action=click&module=MoreInSection&pgtype=Article®ion=Footer&contentCollection=Business%20Day
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4 comments:
This is really bad for Zelle and Venmo, especially because of the amount of transfers that happen on a daily basis. This looks very bad to the public. I wonder what actions they will take to prevent this.
This is a very interesting conversation because we all understand that money will most likely be all electronic. This is scary to some, because of the possibility of hackers. Just like there are thief's who rob and steal money, there will be hackers who do the same. It will impossible or at least very difficult to fully end all money related thefts. However, it will be interesting to see what the government and private companies do to combat these type of hacks. I do like the idea of regulated banks coming together to form an easy electronic money transferring service. Unlike Venmo, I'm sure Zelle is at least insured by the FDIC.
The banks for sure have to invest much more in their security system. A bank’s security is the most important and basic factor to attract the customers. Unlike Starbucks, not all the people care about what happens recently because not every customers are affected, but for a bank, if their security system is vulnerable, all the customers would be hurt and they would definitely leave.
When it comes to apps on phones security is always key because if people start losing faith in the application, no one will want to use it, making it obsolete. These banks should put more money into securing these applications because people's money is on the line. Also, along with that, having more people use e-banking allows for a more efficient use of time making transactions faster, which could raise MPC, which if at 1.0, according to Keynes, is optimal.
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