smartphone on-the-moveMaximilian Schönherr/DPA/Press Association Images

Apps are great fun, and incredibly handy. Who doesn't love being able to get directions at the touch of a button, download vouchers from your seat in the restaurant or check in on Facebook? However, while it saves us the indignity of wandering around with an A-Z or a wallet full of coupons, it does come at a cost.

And it's one that could come as quite a shock.

According to ISACA, some 58% of people with a smartphone use location-based apps of one type or another, and a third of consumers said they used them more than they did a year ago.

The risks

However, there are some clear risks associated with this sort of app. The first is that we are revealing vital information about ourselves that companies could cash in on. The app knows where we shop, where we hang out and where we eat, and there are marketing companies that would pay handsomely for this information.


Alarmingly, a huge chunk of people have no idea whether this information is being passed on. Some 43% of people do not read the agreements on apps before downloading them, and of those who do read the agreements, 25% believe these agreements are not clear about how location information is being used. It's no wonder that a quarter are worried about our details being sold.

Justin Basini, CEO of privacy company ALLOW, said: "There's no doubting that apps are handy and they are fast becoming integral to many people's lives. However, what users may not realise is that app developers crave their personal data because it is extremely valuable for marketing purposes. It's not just small, start-up companies but major ones such as Facebook too.

"Before you download an app it's worth considering what personal data the developer might collect and what it is used for. Apps that track your location can build a picture of your daily life and some can even monitor your movements whether you actively use the app or not, which is disconcerting to say the least. It's like having a homing beacon hidden in your shoe! Check to see whether the company has a privacy policy, because if they don't, you might be opening yourself up to invasions of your privacy."

Criminals

But being sold to is just one of our concerns, because there is a risk that they threaten our personal safety too. Some 24% of people are worried about strangers knowing too much about what we are up to, and 21% are concerned for our personal safety.

There is every risk that someone only needs to log into Facebook to discover where we are and what we're doing. This leaves us vulnerable to contact from strangers, it also leaves our property vulnerable. All a burglar needs to do to check if you are out for the evening is look at your status updates.

Even if you protect things like Facebook from strangers, you have to ask who is picking up the data from the app you used to find your way to the venue, or the one you used for two-for-one drinks. Given that 59% of us use these apps to find our way, criminals don't need to work hard to find your weak points.

"Like any other kind of information-sharing, location-based apps can be tremendously convenient but also risky. Knowledge is power. People should educate themselves so they can understand how their data is being used or know how to disable this feature," said Marios Damianides, past international president of ISACA and partner, Advisory Services, at Ernst & Young.

Protect yourself

The good news is that an increasing number of people are wising up to the risks, and 38% have disabled location-based features on select apps and services.

ISACA says before you use an app with location information, you need to take five key steps:

1. Read mobile app agreements to see what information you are sharing.
2. Only enable geolocation when the benefits outweigh the risk.
3. Understand that others can track your current and past locations.
4. Think before posting tagged photos to social media sites.
5. Embrace the technology, and educate yourself and others.

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