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

• Smartphone-based payment system’s security risks

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…