Citigroup confirmed publicly that its Citi Mobile iPhone application has a major security flaw. The Citi Mobile application is used by Citibank customers to manage their bank accounts from their iPhone or iPod Touch. The application reportedly stored sensitive information — including account numbers, payment information, and security access codes — in a hidden file on the user’s phone. This file may also have been transferred to a PC if a user synced his or her phone with their machine. Before panic overtakes you, there is no indication that these files have been compromised by any known exploit. Nonetheless, Citibank is telling its customers to upgrade to the latest version of its application which deletes these hidden files. The updated version was released on July 19th and is available for download from the App store. More →
While the US is decidedly and unbearably behind the curve when it comes to mobile banking, the iPhone is managing to spark some creativity in the space. Case in point: USAA, a privately-held bank and insurance peddler, will be updating its iPhone app soon with a new check deposit feature. As you might have been able to conclude from the image above, USAA’s app will allow account holders to capture images of a check and deliver them securely to the bank’s servers. The bank will then process the check and deposit the funds in the customer’s account. There will be no need to go to a branch to follow up or even mail the check to the bank for verification — snap a few pics and you’re done. Awesome. The new feature will only be available to certain customers; those “who are eligible for credit and have some type of insurance through USAA.” According to the bank’s EVP however, about 60 percent of the bank’s customers will meet these requirements and therefore be able to use this great new feature when it becomes available. While the technology involved is nothing groundbreaking, this is yet another example of of the iPhone spawning creative new solutions and services. Let’s just hope Apple approves the app.