Answer the following (No need for inro/conclusion)
Part 1
- Does having a smartphone-based payment system entail more or fewer security risks than carrying a traditional wallet, and why?
- Can bitcoin be the currency used in a negotiable instrument? Why or why not? Please refer to Forbes article “Business Bitcoin Legitimacy, Potential Regulation (Links to an external site.)”.
Part 2
- How is a security interest created and how is it perfected? Provide an example. If you are the creditor, what is difference between having a perfected security interest and an unperfected interest? What is a “reorganization” bankruptcy and how is it different than an “ordinary” bankruptcy? Give examples of each.
- In a bankruptcy, what rights do secured creditors have over unsecured creditors, and why?
Answer preview
A smartphone-based payment system has more security threats than carrying a traditional wallet. Firstly, cybercriminals tamper with the mobile payment application to capture login details through the back door and send the login details to the attacker’s server. The attacks also use reverse engineering to obtain information on the payment application to crack hardcoded passwords and exploit any vulnerability such as registration of bank details. Additionally, malware infections gather information about smartphone users from social media sites and search engines, exposing them to attack. Lastly, losing a phone makes the user extremely vulnerable to unauthorized users by bypassing PIN or fingerprint locks. Fingerprints can be accessed from surfaces and used to access the smartphone, and data installed in the phones can easily be accessed and stolen for malpractice (Akinyokun, 2017). Conversely, there are no security breaches with traditional wallets to your money and personal information.
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