The UK government is taking action to reduce the risk of fraud for users of mobile phone payments technology, according to media reports.

Home Office minister Alan Campbell has launched a new series of steps that will prevent the financial information of customers being compromised if their devices are lost or stolen, reports said.

It is to introduce security measures that mean any transactions above a certain level will have to be verified through the use of a pin code - a method similar to that in place for current contactless card payment technology.

In addition, phones that are stolen will be deactivated as soon as possible to stop them from being used fraudulently.

"The payments industry is sensitive to customer concerns about security and has always set high standards for its products," director of the UK cards association Paul Marsh stated, adding that it has welcomed the opportunity to discuss the issue with the government.

Mobile payments technology is moving into fields including wealth management. As reported recently, for example, USAA, the Texas-based bank which serves military personnel and has a wealth management division, has launched a new mobile cheque deposit facility for the iPhone – a move which is surely to be imitated as demand for mobile banking gains momentum.