Citi warns against security flaw in iPhone application

Global financial services provider Citigroup warned customers its free mobile banking application for Apple's iPhone contains a security flaw, recommending users upgrade to a newer version that corrects the issue. According to Citi, a hidden file in the iPhone app accidentally saved consumer information including account numbers, bill payments and security access codes. "We have no reason to believe that our customers' personal information has been accessed or used inappropriately by anyone," Citi said. The Wall Street Journal reports about 117,600 consumers have registered to use the Citi Mobile app since it launched in March 2009, adding it currently ranks as the 11^th most popular Finance application in Apple's App Store. The updated Citi Mobile 2.0.3 rolled out on July 19, and deletes any account data that may have been stored to a user's iPhone or personal computer.

About 18 million American adults are now active users of mobile banking services according to data issued by financial services research firm Celent, adding that about 196 million adults (or 84 percent of the population) use some kind of banking service. With an estimated 800,000 mobile customers, Citi ranks fifth in mobile banking, Celent notes, behind Bank of America (5 million users), J.P. Morgan Chase (2 million), United Services Automobile Association (1.5 million) and Wells Fargo (1.4 million.)

Last month, Citi introduced Citi Shopper, a location-based mobile application promising consumers local offers and deals, price comparisons and maps to nearby retailers. Powered by GPShopper's Slifter technology, Citi Shopper scours inventory information spanning 2 billion items across more than 1,000 retailers to find the best bargains in the user's vicinity, identifying where a product is available and offering instructions on how to get there. The app also reminds Citi cardholders of offers, rewards and benefits specific to their accounts. Citi also announced the launch of MasterCard PayPass stickers, which consumers can affix to the back of their mobile device to make contactless payments at roughly 230,000 merchants that accept PayPass transactions.

For more on the Citi app flaw:
- read this Wall Street Journal article

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