Broadband Tech > Security > Security > Facebook wants to be your online bank

Facebook wants to be your online bank

quote:

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Currently in an internal beta, with the first version built in March, the application is expected to launch sometime this year to customers. It will allow Facebook users who are bank customers to make payments to third parties as well as Facebook friends through the social media channel, according to the bank. Commonwealth will secure transactions with its own authentication system -- similar to how payments are secured on its online and mobile banking site, a spokesperson says.

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There are risks such as spam messages that could look like a friend in trouble, prompting users to send money through their Facebook app. But Commonwealth Bank says it won't launch the app unless it can offer customers a 100% guarantee of security, a spokesperson says. Plus scams like these are inherent to any virtual medium today, and unlikely to deter the Facebook user who finds banking from the social channel a time saver.

And while Facebook may be encouraging banks to open virtual outposts today, other industries will likely also be interested in creating a private walled garden on the platform. Sure, people are coming to Facebook to share their vacation photos with pals. But why not collect their paycheck, buy medical insurance or pay the IRS there as well?

The company makes no bones that it sees itself as a channel where users supply content with Facebook acting solely as the conduit. However, touting itself as a place for privacy is an unusual marketing pitch from social media's grand dame. And it's one that officially Facebook won't officially acknowledge.

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Never in a million years would I ever trust Facebook with banking information. AFAIC, the idea is just laughable.

reply to goalieskates
After all the questionable ads I've seen on Facebook, including a few that tried to install malware on my machine, there's no way in hell I'd ever trust them with banking information.

reply to goalieskates
The question that needs asking is "Why"?.
The benefits to facebook are obvious.
A larger footprint to monetize.
What's in it for a US based financial institution?
Passing off their legally mandated liability for fraudulent transactions.
As it is now, if a US issued credit card customer falls victim to fraud the card issuer takes the loss when the fraud is properly reported by the consumer.
An exception is made when a 3rd party handles the transaction.
facebook making payments to a 3rd party on a customers request is acting as a 3rd party in the relationship between card issuer & it's card holding customer.
Bank is off hook & facebook doesn't assume banks liability.
Bank has successfully passed fraud liability to customer.
short story: US bankers version of wet dream.

reply to newview

reply to goalieskates
Now isn,t this just a classic case of wanting to put the Fox in the chicken coop to protect the chickens....

reply to goalieskates
Well I think that there are going to be a lot of Cyber Bums asking for spare change best thing to tell them if this really does go thru is to pawn there PC

reply to newview
+1. Facebook is joking, right?

reply to goalieskates
Yea... no.

reply to goalieskates
"won't launch the app unless it can offer customers a 100% guarantee of security"

hahahahahahahahahahahahahahahaha
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Of course I can keep secrets. It's the people I tell them to that can't keep them.

reply to goalieskates
I must say, I got a pretty good laugh of this too when I first read it.
I'd give my banking information to some homeless guy on a street corner, if he assured me he could be trusted, before I allowed Facebook to get their hands on it.
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I had a life once.....now I have a Computer and a Modem.

reply to newview

I'm on Facebook myself but I'll never let them come within a mile of my bank account. That's for sure.

reply to TheWickerMan

reply to Austinloop

reply to goalieskates

Re: Facebook wants to be your online bank

reply to trparky
Why what's they gonna do? Take your money away? For what? So they can be charged with theft?

Heh.

reply to goalieskates
Mark Zuckerberg is a genius! He found a way to capitalize on stupidity!

Damn, why didn't I think of that?!

reply to goalieskates
1) Brain off

2) hand over money

...

4) PROFIT!

Facepalms of the internet, unite.

Regards