Citi’s Bad Apple: Security Defect Discovered in Bank’s iPhone App

Citigroup Inc. is urging U.S. customers to switch to its new mobile banking application for Apple Inc.’s iPhone due to a security glitch in the first release, according to The Wall Street Journal.

The original version of the iPhone app would inadvertently store details about Citi users’ accounts in a hidden file, the newspaper reports.

“The information may also have been saved to a user’s computer if they synced their iPhone with a PC. It wasn’t immediately clear whether the information was stored in an area that could have been accessed by a hacker, but Citi said it doesn’t believe the data was breached and said its new app corrects the problem,” wrote Wall Street Journal reporter Spencer E. Ante.

Ante added Citi said in a statement that its additional iPhone apps, including its credit card app, were not impacted.

As the mobile platform wars rage on, this incident highlights the challenges facing application developers. In our Security & Fraud Briefing Room, leaders at Gemalto and the Merchant Risk Council share their expertise on how to assuage the risk that comes with advancements in payments technology.

Yet overall, the popularity of mobile banking remains on the rise. Mobile banking usage nearly doubled since last year, according to an IDC Financial Insights survey. In the next five years, IE Market Research Corporation predicts that global mobile payments will reach the 1 billion users / $1 trillion transaction mark. wants to hear from you: What are your thoughts on mobile banking applications? Leave your comments below.

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