A significant security problem has been found in Google Wallet that would allow a lost or stolen smartphone running this app to be used to transfer money without the original owner’s permission.
When setting up this software, the user specifies a pre-paid debit card to be used for purchases. If the user then erases all their data from the app and gives the unit to another person, when that second individual goes to set up Google Wallet they are given the option of connecting their account to the original user’s pre-paid debit card. If they do so, they can withdraw funds without needing the approval of the first user.
Google has been made aware of this security hole and is working on an update for Wallet that will remove it. In the mean time, the company recommends that people who lose or sell an Android smartphone on which this app has been set up call Google Wallet support toll-free at 855-492-5538 to disable the prepaid card. It is also recommended that all users set up a screen lock as an extra layer of protection.