ATM App Is Convenient, But Is It Secure?
(CBS) -- Get ready to throw away your debit card. The new way to get cash from an ATM is with your smartphone.
CBS 2's Dorothy Tucker takes a look at the latest in mobile technology that sparks both excitement and worry.
It spits out cash like any other ATM.
"Look at that," said Wintrust Bank customer, Bart Johnson.
How he gets his cash is unlike anything you've probably ever seen. He didn't swipe a debit card. He didn't enter a pin. This cash is courtesy of his smartphone.
"We go ahead and go into the mobile app," said Tom Ormseth, Senior Vice President of Wintrust.
His bank is the first in Chicago to offer this feature. As they demonstrate in their YouTube video you can order your withdrawal in advance from the convenience of your office or home.
"Pick that I want to do cardless cash. Pick the amount that I want. Pick save," said Ormseth as he demonstrated how to use the app.
When you get to the ATM... "Push on cardless cash. Scan the QR code. Tells you to take your cash. Remove the bills," Ormseth said, demonstrating what to do at the ATM.
"I like the app. If I don't have my wallet or debit card on me but I do have my phone which I always have go right to the ATM, put it up to ATM and get my money," said Johnson.
What's the advantage? "There's security," answered Ormseth.
The biggest security threat you eliminate is skimming.
That's when thieves attach a device to an ATM so when you swipe your card they can steal your debit number and PIN.
"There's no card present so skimmers can't get the card number," said Ormseth.
But what if you lose that phone? That's the question security experts raise about any kind of mobile banking, adding, even if the phone has a password, it's not 100 percent secure.
"If somebody wants in the phone bad enough, it just takes time," said Louis McHugh, computer systems manager at Illinois Institute of Technology.
He also raises concerns that the Wintrust app stores your banking information in the cloud.
"As we've seen with some of the recent security breaches, how secure is the cloud really," wondered McHugh.
However, Ormseth argues that even if hackers steal your numbers from the cloud, they can't get cash from the ATM without your phone.
"If it isn't coming from the right phone it's not going to work," said Ormseth.
Right now Wintrust is the only bank in the city with cardless ATMs. But BMO Harris plans to roll out a similar app in the next couple of months. Other banks are expected to follow suit in the very near future.
